Interpretation of the practical gameplay of Pinduoduo's low-price traffic diversion

1. Will Pinduoduo still be able to do business in 2021?

During the two months when the epidemic was most severe in 2020, many friends were under pressure from life and wanted to take advantage of the period of unemployment to do some side jobs to supplement their family income, so they asked the editor whether Pinduoduo could still be done.

I asked them two questions:

1. How did you come into contact with Pinduoduo?

2. Have you made the preliminary preparations for Pinduoduo?

In response to the first question, most of them said that they had heard about Pinduoduo from the news, Douyin ads, and relatives and friends, so they came up with the idea of ​​working for Pinduoduo.

Regarding the second question, most of their responses were that they had no understanding, were not prepared, or wanted the editor to guide them for a period of time. Because of my limited energy, I naturally cannot agree to their request to work on Pinduoduo. However, the editor clearly told them that Pinduoduo will have a good business in 2020!

Even today in 2021, I still think so.

Let's look at a set of data: According to Pinduoduo's Q4 2020 financial report data, as of the end of December 2020, Pinduoduo's number of active buyers reached 780 million, surpassing Taobao (779 million in the same period) to become China's largest e-commerce platform in terms of user scale.

Of course, in terms of revenue in 2020, Pinduoduo still has a huge gap compared with Taobao and JD.com, but Pinduoduo has surpassed Taobao and JD.com in terms of revenue growth, so it can be said that there is a promising future.

Why is Pinduoduo's monthly active users growing so significantly?

This is due to the fact that Pinduoduo avoided the first- and second-tier user markets of Taobao and JD.com in its early days, and focused on the sinking markets in the new second-tier and third- and fourth-tier cities. It also adopted the M2C model (manufacturers directly facing consumers), met the shopping needs of users in the sinking market (pursuing cost-effectiveness), quickly opened up the market, and attracted a large number of users.

Comparison between B2C model and M2C model

Compared with Taobao and JD.com, Pinduoduo's advantage lies in weakening its brand and compressing the supply chain (equivalent to one less price increase from brand owners), thereby better controlling the price markup rate of goods.

It is precisely for this reason that Pinduoduo can lead the pack in terms of product prices. For small and micro businesses that want to do business on Pinduoduo, with a huge traffic pool, ultra-low entry threshold ( 0 cost to open a store ), and continuously growing user spending, it should not be that difficult to run a store.

2. Pinduoduo basic operations and low-price traffic diversion

Although the threshold to open a store on Pinduoduo is low, it does not mean that there is no threshold at all. There needs to be a stable supply of goods and a certain amount of cash flow. If you can't even afford the 2K deposit, then you'd better forget it.

1. Introduction to the process of registering a store on Pinduoduo

(1) Preparation:

①Personal store: Personal ID card (each ID card can open 2 personal stores)

②Enterprise store: legal person ID card, business license (each business license can open 5 enterprise stores)

③Store deposit: Individual/2000; Enterprise/1000 (can be paid after the store becomes profitable, i.e. opening a store at 0 cost )

(2) Registration process:

2. Store decoration process

Note:

① If you choose template decoration, the template should be deleted and modified to maintain the same style;

② Crop the image size according to the format requirements (using tools such as Photoshop and PhotoShow), and make sure it is not blurred;

③ Rotate store templates according to the season (you can imitate your peers) to enhance users’ sense of freshness;

④For store templates with discount modules, after setting the discount information, you should immediately promote the store’s main products, which is a key point in traffic conversion.

3. Should we do or not to attract traffic at a low price?

After the no-source store group model was ruined (the platform suppressed it severely), Pinduoduo's current mainstream model is to run a single-category store. Of course, as Pinduoduo is gradually becoming saturated (there were only 1 billion domestic netizens in 2020), in order to make a profit, the platform will naturally give priority to supplying traffic to paying merchants.

Therefore, Pinduoduo's traffic now basically has to be purchased with payment, and in order to maximize profits, merchants will naturally try every means to attract the most traffic and get the most orders with the least cost.

This is a tough time for latecomers, as they have seen many merchants on the platform offering low-price products to attract traffic. If they do not do the same, their newly listed products will be buried in the vast amount of products after they have received support for new product traffic, without making any splash.

A. What is low-price traffic generation?

Low-price traffic refers to merchants setting one or more low-price SKUs in a product to show price advantages on the front end, thereby obtaining traffic (Pinduoduo platform users are more sensitive to low prices)

B. Doesn’t Pinduoduo prohibit low-price traffic diversion?

Yes, Pinduoduo suppresses and prohibits low-price-induced behaviors. Punitive measures include but are not limited to product blocking, store demotion, restrictions on store fund withdrawals, and being cleared out by the platform.

C. Then you also instigate people to attract traffic at a low price, your intention is despicable!

First of all, we must make it clear that the platform needs to make a profit, but merchants also need to eat! If all the profits are contributed to the platform, what's the point! Veterans all know that many merchants with sales on Pinduoduo are using low-price SKUs to attract traffic .

Others can do it because they make reasonable use of platform rules and avoid risks. And this is the skill I want to teach you.

3. Pinduoduo’s low-price traffic diversion practices

1. What kind of low-price traffic will be punished by the platform?

A. Multiple types of products are sold in the same product link/ID: for example, white shoes + whitening liquid, and the whitening liquid is sold at an ultra-low price of less than 1 yuan to deceive consumers into clicking, thereby achieving the purpose of attracting traffic at a low price. This kind of gameplay has been almost cracked down by the platform, so don’t touch it!

B. Take one component out of a set of products and sell it in the same product link/ID: for example, take one pillowcase out of a four-piece bedding set and sell it at an ultra-low price of less than 2 yuan to attract customers. Similarly, this kind of gameplay is also suppressed by the platform, so don’t touch it.

C. Add very high-priced products to regular products and sell them in the same product link/ID. For example, if it is lipstick + lipstick sample, the lipstick sample must be released as a single product, otherwise it will be judged as low-price traffic diversion.

The above-mentioned sku low-price traffic diversion operations should be avoided as much as possible. At the same time, if you are prompted by the system that the product is suspected of low-price traffic diversion after it is released, delete the product immediately.

2. Practical aspects.

There are mainly two ways of low-price traffic diversion: sku low-price traffic diversion and ppc low-price traffic diversion. But the key point is to achieve the purpose of low-price traffic by setting the sku price range.

The advantage of doing this is that it increases the exposure of products and stores in the early stages, which can quickly increase the click-through rate and improve the keyword weight.

A.sku low price to attract traffic:

(1) SKU low price traffic diversion idea

As shown in the picture above, the highest price on the homepage is 88 yuan and the lowest is 10.9 yuan. The product that attracted customers with a low price of 10.9 yuan was a pair of size 43 bronze shoes.

However, what users need are white sneakers. Obviously, this pair of shoes does not meet users' needs, and users will not have a high desire to buy them. Even if they buy them for the sake of cheapness, for merchants, the traffic brought in at a low price is enough to offset the loss.

This is the idea of ​​attracting customers by using low SKU prices.

(2) SKU low price traffic diversion skills

①Price: The core of low-price traffic generation is price. The price of the product should be lower than the lowest unit price seen when searching for the core word of the product.

② Main promoted products: The lowest priced products are for attracting traffic, but our real purpose is to promote the products. Therefore, the main product must highlight its cost-effectiveness.

For example, if you want to promote 100 bags of tea, the sku can be set to sell 100 bags of tea for 29.9 yuan and give away a teapot; the sku for low-price traffic can be set to sell 50 bags of tea for 14.9 yuan, but without a teapot.

In this way, the cost-effectiveness of 100 bags of tea is immediately highlighted.

③Profit: To attract customers with low SKU prices, you need to ensure your own profit margin, rather than blindly setting low prices regardless of costs, which will result in the more you sell, the more you lose, so cost accounting must be done.

④Multiple choice: Set the quantity of goods to meet different prices for different quantities. This will create a stepped price range to meet the consumption needs of different users.

B. PPC low-cost traffic generation skills

The core idea of ​​PPC low-price traffic diversion is low price, multiple words, multiple links, and optimization.

① Create a low-cost traffic diversion plan:

There are three main points to creating a low-cost traffic plan.

The first is the price setting of smart word packages; the second is the price setting of traffic expansion packages; and the third is the custom bidding setting under the basic bid. All three prices are set to 0.1 yuan. Another point to note is that the time-sharing discount option is 100%.

Why set such a low price? Because each promotion plan can add 200 keywords, by using the keyword expansion tool provided in the background, all 200 keywords can be added with one click.

②Next, follow the steps in step ① and add all the products in the store to the plan.

③The third step is to make a keyword plan. There are seven keyword plans, namely, hot search word plan, high-quality word plan, etc., as shown in the figure below. Each plan includes all the products in the store.

Of course, if the traffic and conversion rate of the keywords you have created before are good, you can make a custom keyword plan yourself.

④The last step is optimization.

Optimization is generally carried out in cycles. After the PPC low-price traffic plan is created and run, it is optimized every 3 days, deleting the words that are not displayed and adding new words.

For products that are more diligent, optimize them once every 5 days, delete products with no conversion rate, and fill in new products.

Then you need to check your background reports every day to make sure you have a clear idea of ​​all the data.

3. Achievements display

According to this operation method, some businesses have achieved an input-output ratio of 3.6 in a 30-day cycle. Among them, the words with the highest click-through rate are those in the same category.

IV. Conclusion:

In addition to attracting traffic at low prices on the platform, Pinduoduo merchants also need to focus on retaining their own users, which is the currently popular concept of private domain traffic. When you put a product link on the shelf, you can leverage your previously loyal users to quickly reach users with product information via WeChat. If there are real sales and reviews on the product link in advance, the weight of the product will be greatly increased.