The Double Eleven shopping festival has come and gone, and now the Double Twelve is here. With a staggering 57.1 billion yuan in sales, the physical retail industry is under pressure, while phrases like "the best sales of the year" and "buying cars and houses with e-commerce" are spreading online. Many people are trying to follow in the footsteps of Jack Ma, chasing the dream of wealth through e-commerce.
But is this dream achievable overnight? For many businesses, it's not just a dream—it's a nightmare. The e-commerce world is filled with intense competition, where only a few can truly succeed. Some companies are caught in a cycle of spending, pushing traffic, and chasing rankings, all while struggling to make a profit.
One furniture e-commerce executive revealed that 30% of their sales come from a single order. “For every million yuan in turnover, at least 300,000 is spent on advertising,†he said. This has led to the rise of organized teams known as the “Single Legion,†which artificially inflate sales numbers to gain visibility on platforms like Taobao. These tactics create fake popularity, misleading consumers and distorting market reality.
Entering Tmall requires a high cost—both financially and operationally. Merchants must pay high margins, invest heavily in ads, and even use “brushing†techniques to maintain top rankings. A portion of every transaction goes directly to Tmall, making the platform one of the biggest beneficiaries. As a result, many businesses find themselves trapped in a cycle of spending just to stay visible.
During events like Double Eleven, the costs for e-commerce companies skyrocket. They pay hundreds of yuan per customer just to appear in search results, and they must also offer discounts to remain competitive. After-sales costs, such as returns and exchanges, are also rising. In this environment, some companies are losing money just to survive.
Industry insiders have criticized Tmall’s promotion model as “robbing the poor to help the rich.†The platform offers favorable terms to top merchants but leaves smaller sellers behind. During the Double Eleven period, both Tmall and its merchants invest heavily in advertising, creating an atmosphere of frenzy. However, when the event ends, many small businesses are left with little to show for their efforts.
Despite the losses, many still see value in participating. For them, the event is more about brand exposure than immediate profits. The influx of new customers during these promotions can lead to long-term growth. However, the question remains: how long can this cycle continue?
The future of e-commerce depends on whether it can return to a more rational and sustainable path. It shouldn’t be a nightmare where only the largest players thrive, and small sellers are left behind. The Double Eleven and Double Twelve should be opportunities for growth, not just short-term gains.
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Email:info@rimlessindustry.com
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