Why are internet giants selling vegetables

Tech 2023-05-12 10:21:40 Source: Network

Why are internet giants selling vegetables? In many places, one dish is hard to find. The most profitable business in the world is selling vegetables

Why are internet giants selling vegetables? In many places, one dish is hard to find. The most profitable business in the world is selling vegetables. Even all internet companies Pinduoduo sell vegetables, and Alibaba and JD are also selling vegetables. The profit margin of selling vegetables is very low. Why is the competition still so fierce? What is the logic behind it?

Firstly, there is a fast cash flow in sales every day. Secondly, the repurchase rate is high. Harvest traffic interest. We know that the profit margin of selling vegetables is as low as only 1% to 5%. That means investing 100 yuan can only earn 1 yuan. But his turnover rate is extremely high. We need to restock every morning and afternoon. He needs to capture at least 700 times 365 days a year. In other words, for every 100 yuan invested, you earn 700 yuan. A gross profit margin of 700%. But there are also exceptions, when your profit margin is rich, the loss area is large. There are chain stores or giants like Tencent supporting behind. But if it is a positive profit, as long as the turnover is fast enough, it is a very good business.

After all, food is the top priority for the people, right?

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