During the prime advertising time before Jiangnan TV's "Evening News," Baba Company placed an advertisement. The content of the advertisement was Baba Company's e-commerce platform. It sincerely invited heroes from all over the world to start businesses on the Baba platform. The big move was to not charge any fees for three years.

The slogan of this advertisement is also very simple and crude: If you want to make money, come to Baba.

It's just such a simple 7 words, but it's attractive enough.

At the beginning, those merchants in traditional industries who were still waiting on the sidelines started to open stores on the Baba e-commerce platform when they saw the profits.

For a time, the number of merchants on the Baba platform exceeded 20,000. Compared with last month, it has more than doubled.

Inside Baba Company.

The customer service department's phone is ringing non-stop with inquiries about how to open a store.

At the same time, some businessmen from other places also came to discuss business cooperation.

Seeing the company's prosperity, Ma Yunyun smiled from ear to ear. Sure enough, she didn't even know her potential unless she pushed herself hard.

Pangu Company.

Wu Zhengtian was holding a meeting with senior executives and proposed a five-year free strategic plan, which made most of the senior executives fearful. They were risking their lives.

"Mr. Wu, is this vicious competition? The profit model of e-commerce platforms relies on charging merchant service fees. If we give up for 5 years without making a profit, can we hold on for another 5 years?"

"Mr. Wu, there is another very important question, that is, can Chaoyang Group and Mortal Technology Group support us for five consecutive years? Or in other words, can they allow us not to generate profits for five years?"

"Mr. Wu, is the 5-year free period too harsh? Can our capital chain last for 5 years? How can we make money without charging merchant service fees within 5 years? Although our current capital reserve is Bibaba Company

There are many, but according to information feedback, Baba Company has received support from Guoming, Goldman Sachs, and Yahu. Goldman Sachs is a global investment giant, and Yahu is the largest Internet company in Citigroup. Their funds are better than those of Chaoyang Group and Chaoyang Group.

Mortal Technology Group. I’m very worried!”

"This is like two hawkers selling melons. Hawker A sells melons for 5 yuan per catty, hawker B sells 4 yuan a pound to compete, and hawker A sells melons for 3 yuan to compete for customers. After several rounds, we lose money and make money. We can't

To fight Baba on free, we still have to encircle and suppress Baba in terms of core technology, service quality, distribution links, shopping experience, etc.”

Most executives disagree, and it is very reasonable to disagree. He is free for 3 years, you are free for 5 years, he is free for another 10 years, and you are free for 20 years, not to mention whether the two companies will still be there in 20 years.

Let’s talk about whether the funds can last for 20 years.

Therefore, this kind of competition is very wise and does not conform to the laws of the market.

But what the executives didn't know was that Lin Bufan naturally had Lin Bufan's ideas.

As a reborn person, Lin Bufan knows very well that the final profit model of the online shopping platform will become multiple. The pit fee, also known as the service fee, is no longer the most important thing. The most important thing is the recommendation position, which is the store that appears on the app homepage and category homepage every day.

These positions require real money and platinum money to buy; there is also a search service, that is, the store that jumps out first when buyers enter the word "clothes" in the search, which also needs to be purchased.

There is also traffic. The so-called traffic is page push advertising, which is similar to TV advertising. It requires money to attract customers to your store.

And so on, many, many.

So the pit fee is actually not that important.

In addition, there are many profitable aspects of e-commerce, such as the payment bag in the previous life. There was Huabei in the payment bag. If Huabei cannot be repaid the next month, interest will accrue if you choose to pay in installments. The annual interest rate reaches 14%.

I know that the bank's one-year lending rate is sky-high, only 5%.

The user base of Paybao is at least 100 million, so how much interest will be generated?

In addition, Alipay is also connected to various services and various types of companies. These companies have to pay Alipay every year, which is another huge sum of money.

There is also a "borrowing bar" for payment, which is to put it bluntly, lending. The annual profit can be at least several billion.

But this is all more than ten years from now. Although those executives are all talented, they can't see things that far away. They don't even have the concept of an app now.

So to sum up, the questions and objections they are raising now are all correct.

If Wu Zhengtian had not had an in-depth chat with Lin Bufan, he would have sided with the executives...

"Everyone, I understand your thoughts, but I also have my own considerations and my tactical layout. Please trust me."

Wu Zhengtian made the final decision.

Pangu e-commerce soon announced that it will not charge merchants any fees for five years.

And it was publicized by Mortal Technology’s external publicity department, Panda Chat, various games, portals, and major entertainment companies carried out bombings.

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For a time, the situation between the two companies became very tense.

But the real war has not yet begun.

After being free for 5 years, it has brought tens of thousands of merchants, and the number has reached more than 20,000.

50% of the merchants have opened online stores in both Baba Company and Pangu Company, eating from both ends.

Baba Company.

Cai Congxin and Ma Yunyun are discussing the next plan.

"Sure enough, Pangu Company took action. It's free for five years. It's really generous." Ma Yunyun said angrily.

Cai Congxin looked serious and said: "Although it was expected, it still shocked me. Five years for free. How much confidence do you have that Mortal Technology and Chaoyang Group can agree to this?"

"Judging from the current situation, Mortal Technology and Chaoyang Group have agreed." Ma Yunyun said seriously, "What should we do now, continue to increase the free time?"

"..." Cai Congxin looked serious, thinking...

Just like Pangu executives said, vicious competition in the end will be like a snipe and a clam competing for the fishermen's profit. In the end, the platform will die, and the cheaper ones will be consumers and sellers.

But now we are in a situation where a wild beast is chasing us and we have to run. If we continue to run forward, we will reach a cliff, and it will be difficult both front and back.

Cai Congxin couldn't decide to pay attention for a while.

Ma Yunyun was so proud that she slapped the table and shouted: "Follow them till the end, and we'll be free for 6 years."

"You have to think about this carefully."

After some thinking and dialectic, the two decided to give it free for 6 years.

Ma Yunyun gritted her teeth and said, "I don't believe it. Pangu Company can still increase the free period. Even if Pangu Company wants to increase it, I don't believe that Mortal Technology and Chaoyang Group are willing."

From an investment theory perspective, it is absolutely impossible.

At that time, the global incubation industry could only last for five years at most. If no profits were generated within five years, investors would definitely run away.

In the previous life, Baba e-commerce became profitable in the second year after its establishment, and saw overall growth in the third year.
Chapter completed!