Pinduoduo: 618 price reduction will give traffic

E-commerce newspaper Pro

2024-05-27 11:46Posted on the official account of Guangdong E-commerce News

Merchants will reduce the price and give traffic

This year's 618 promotion, Pinduoduo has given a dose of fierce medicine.

Recently, Pinduoduo adjusted the traffic rules of the 618 search recommendation scenario, and increased the traffic weighting of active products and price-reduced products in the sorting of goods, and all price-reduced products will increase the weight of the traffic of the whole site, and the weight can be increased by up to 9 times, and the price of the activity orders traded during the 618 period will not be included in the historical lowest price.

This means that the reduced-price items will rank higher in search results, be more easily seen by consumers, and merchants will continue to participate in other promotions after 618 without worrying about price.

In addition, the products that merchants have successfully registered for will receive product list marking and product detail promotion atmosphere bonuses, which will further improve the traffic conversion rate, which can increase by up to 200% according to Pinduoduo's historical data.

Source: Ebang Power

Under the new traffic rules, merchants participating in the 618 promotion can obtain rights and interests such as search recommendation weighting, tens of billions of official subsidies, 100 million traffic exposure at the main venue of the 618 promotion, and 618 conversion rate improvement.

During the promotion period, the platform will also increase subsidies and issue tens of billions of coupons. All products that have been successfully registered by merchants can be superimposed with official promotion coupons and monthly card coupons, and there is a chance to make more event orders.

During the event period from 20:00 on May 20 to 24:00 on June 21, the price of activity orders in the official promotion, 10 billion subsidies, limited-time seckill, 9 yuan 9, multi-person group, homepage recommendation area, trendy good price and other resource positions will not be included in the lowest price in history. The time when the merchant's event order is generated can be within the non-pricing time period, regardless of the registration time.

It is worth mentioning that in order to cooperate with the adjustment of traffic rules, the official promotion of the platform has launched a new exclusive registration link in conjunction with the adjustment of the search recommendation strategy.

Among them, the important process in registration and review has been optimized, the access review is carried out by comprehensively considering the price of goods and advertising investment, and the successful marking of products with additional price reductions, strong cost advantages and large advertising investment is encouraged, and the search recommendation traffic is weighted to get more 618 activity order rewards.

Compared with the previous one, the pass rate of this event has increased by 60%, and it has also reduced the problem of wanting to participate in the outbreak of the big promotion but not being able to report.

From the perspective of the platform, the increase in the traffic weight of the whole site for price-reduced products means that the exposure of low-priced products on the platform is higher, which helps the platform attract more users through price-reduced products and preferential activities, and increase the traffic and activity of the platform. At the same time, lower-priced items attract users to place orders, thereby increasing sales on the platform.

For merchants, the new Pinduoduo 618 regulations provide a good opportunity to increase traffic and sales through price reduction promotions, further strengthening the effect of price reduction promotions, and giving merchants more advantages in the competition.

Pinduoduo's long-termism

Pinduoduo's increase in the traffic weight of price-reduced products reflects Pinduoduo's continued low-price competition. The low-price strategy is one of Pinduoduo's core competitiveness, which brings it a significant market advantage.

A large number of affordable products have brought a huge user base and traffic advantage to Pinduoduo. On May 19, Pinduoduo officially launched this year's 618 promotion, focusing on simple and affordable, instant purchase.

The big promotion provides benefits such as 30 for every 200 cross-store purchases, an additional 618 yuan subsidy coupon package for each consumer, and also launches new ways to play such as 10 billion double supplements, 10 billion special sales, single discounts, and buy-to-return.

Source: Pinduoduo APP

From June 6th to the end of the big promotion, the Pinduoduo seckill channel will also launch a 6.6 yuan seckill activity on the basis of the 9.9 yuan seckill.

The low-price strategy is a long-term principle pursued by Pinduoduo, and it can be seen from the new changes in the 618 promotion activities that Pinduoduo continues to strengthen its low-price advantage. Through direct discounts and subsidies, tens of billions of special sales, multiple consumption benefits, and increasing traffic weight and conversion rate, we will provide consumers with a more favorable shopping experience.

Of course, Alibaba, Jingdong and other major e-commerce platforms are also actively engaged in price reduction, in the e-commerce industry is becoming more and more fierce competition, low prices are obviously the most direct and effective means to grab users.

This year, Tmall played the slogan of "the simplest 618", canceled the pre-sale link, and directly opened and sold, while Taobao still pursues the creation of "ultimate price mentality", in addition to super single products, the main style, "price for volume", tens of billions of subsidies, Taobao live broadcast is also a key field of low prices.

On May 24th, Jingdong announced in advance the "6.18" core gameplay, when the entire 618 cycle, the platform will launch a subsidy of 10 billion yuan every night at 8 o'clock 5 percent off to grab big names, the president's live broadcast hot style starts at one yuan, 9.9 free shipping grabs 12 eggs at 8 o'clock in the morning for 1 yuan and other welfare activities.

It is worth mentioning that from May 24th to June 18th, Jingdong will create a series of live broadcasts of the president's "price", inviting hundreds of brand presidents to "parachute" into the live broadcast room, face to face with consumers, and directly reduce prices.

It is not difficult to guess that since other e-commerce platforms are vigorously engaging in low prices, Pinduoduo must of course continue to strengthen its moat advantage.

Recently, Pinduoduo released its financial report for the first quarter of 2024, with revenue and net profit growth exceeding expectations. Specifically, the total revenue was 86.812 billion yuan, a year-on-year increase of 131%; Net profit attributable to ordinary shareholders of Pinduoduo was 27,997.8 million yuan, a year-on-year increase of 246%.

Among them, the increase in merchant orders and GMV led to a surge in Pinduoduo's commission income from merchants, and transaction service revenue soared by 327% to US$44.36 billion. It can be seen that Pinduoduo's insistence on the path of "low-price strategy" is a correct choice.

However, unlike the "low price" in the past, Pinduoduo now pursues a long-term strategy, and in the financial report, Pinduoduo attributed this good performance to the reinvestment in agriculture strategy to release long-term value, as well as the enhancement of the "multi-affordable" and "good service" platform capabilities.

Pinduoduo said that 2024 is an important year for deepening high-quality development and increasing investment. Zhao Jiazhen, Executive Director and Co-CEO of Pinduoduo Group, also pointed out: "In the future, the company will continue to make efforts in three aspects: consumer side, supply side, compliance and platform ecology, and ensure high-quality supply and services while vigorously giving back to consumers. ”

Regarding the adjustments made by various e-commerce platforms to prices and service systems since the beginning of this year, Chen Lei, chairman and co-CEO of Pinduoduo Group, responded, "In the first quarter, we saw that our peers significantly increased investment, and Pinduoduo welcomes healthy competition." ”

Pinduoduo adds short dramas to bring goods

Although low price is still the core play of Pinduoduo, it is not enough to rely on low price. Nowadays, in the stock stage of the e-commerce industry, major e-commerce giants have expanded their business boundaries and sought new incremental space.

For example, with the outbreak of the short drama track, Ali and JD.com have kept pace with the times and used short dramas to bring goods. Recently, JD App has added accounts and content related to short dramas in the "Recommended" tab information flow on the "Shopping" page on the homepage.

When users are watching a short drama, if they are interested in the products in the screen, they can find the same product through the function of "Search for the current screen". At present, there have been many well-known brands updating short dramas on JD.com.

Last month, JD.com also announced that it would invest 1 billion yuan in cash and 1 billion in traffic to support creators and high-quality content in the field of short videos.

Taobao also invested heavily in short dramas. At the end of March this year, Taobao announced that it would invest tens of millions of funds and more than 1 billion traffic support for brand customized dramas in 2024; Taobao also released the "10 Billion Taoju Plan", providing a number of support investments such as cash, traffic, mutual promotion of publicity and distribution, and short-term direct linkage.

Even Meituan has also played short dramas across borders, and in March this year, the short video column was revised and a new theater channel was added; In April, the first column of the theater channel added an editor's pick, and the selected content is short plays.

Source: Pinduoduo APP

This year, Pinduoduo also launched a short drama section, implanting products in the content of the short drama or directly interspersing the short drama section with a video of the product, mounting the product jump link, and users can click to go directly to the product purchase page.

Pinduoduo blesses short dramas, opening up a new traffic entrance for talents or merchants to bring goods.

In general, as an emerging form of entertainment, short dramas have strong attraction and communication power, helping e-commerce platforms increase product exposure. For Pinduoduo, short dramas can complement each other with low-price strategies, helping Pinduoduo to achieve sales growth and market share increase.

Author | Zhou Wenjun

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