Core Insights - The article highlights the significant transformation and challenges faced by the e-commerce industry, particularly on platforms like Taobao, as many sellers are shifting away from online sales to explore alternative business models [1][12][17] Group 1: Decline of Taobao Sellers - A report indicates that the number of e-commerce practitioners in China is expected to decrease by 12.5% year-on-year by mid-2025, with active sellers on Taobao dropping by 18.3% [1] - Former successful sellers, like Zhang Qiang, have left Taobao due to the platform's changing dynamics, which are no longer favorable for small businesses [1][12] Group 2: Rising Costs and Competition - The cost of acquiring new customers on Taobao has surged by 47% in 2025, averaging 78 yuan per new customer, making it financially unviable for many sellers [2] - The quality of traffic has declined, with conversion rates dropping from 10% to 3-4% [2] - Intense price competition has led to a significant reduction in profit margins, forcing many sellers to engage in price wars to attract customers [5][6] Group 3: Unpredictable Platform Rules - Frequent changes in platform rules create uncertainty for sellers, making it difficult for them to adapt and maintain profitability [3][4] - New policies, such as the introduction of a product quality scoring system, disproportionately benefit larger brands, increasing operational challenges for small sellers [3][4] Group 4: Emergence of New Platforms - New e-commerce platforms like Douyin, Pinduoduo, and Xiaohongshu are rapidly gaining market share, with Douyin's GMV reaching 3.43 trillion yuan in 2024, indicating a shift in consumer preferences [7][9] - Sellers are increasingly adopting multi-platform strategies to mitigate risks, but this approach can dilute their focus and resources [9] Group 5: Industry Evolution - The e-commerce sector is undergoing a maturation process, moving from rapid growth to a phase of adjustment and optimization, where only those with unique competitive advantages will thrive [12][14] - Taobao is implementing measures to improve the business environment, including financial incentives and AI tools to assist sellers [12][13]

Core Insights - The article discusses the significant reduction of sellers on Taobao, reflecting a profound transformation in the e-commerce industry and the challenges faced by small sellers [1][17] Group 1: Market Dynamics - The e-commerce sector has shifted from a blue ocean to a fiercely competitive red ocean, with over 13.5 million participants in the online retail market as of June 2025, nearly tripling since 2015 [1][4] - The number of active sellers on Taobao is projected to decrease by 786,000 from 2024 to the first half of 2025, marking a 32.3% increase compared to the same period in 2023 [1][4] Group 2: Rising Costs - Customer acquisition costs on Taobao have surged, with an average cost of 45 yuan per person in the first half of 2025, a 127% increase since 2020, while the average transaction value only grew by 15% to 128 yuan [3][4] - Operational costs are also rising, with average commission rates on Taobao reaching 5.5%, and some popular categories exceeding 8% [4][5] Group 3: Platform Strategy and Regulation - Taobao's strategic shift has favored Tmall, with Tmall merchants receiving 68.3% of natural traffic in the first half of 2025, while Taobao individual sellers' share dropped to 31.7% [4][5] - The enforcement of stricter regulations has led to over 210,000 shops being penalized for violations in the first half of 2025, a 17.5% increase from 2024 [5][6] Group 4: Emerging Competitors - New platforms like Pinduoduo and Douyin are rapidly gaining user traction, with active buyer growth rates of 25.3% and 32.7%, respectively, while Taobao's growth was only 3.8% [6][7] Group 5: Consumer Preferences - Consumers are increasingly prioritizing product quality, with 67.3% of online shoppers in 2025 citing quality as their primary factor for choosing an online store, an 18 percentage point increase since 2020 [7][9] Group 6: Strategies for Survival - Sellers are encouraged to adopt differentiation strategies, develop their own brands, embrace live-streaming and content marketing, and explore multi-platform operations to mitigate risks [9][11] - The overall e-commerce market is still expanding, with a national online retail sales figure of 7.2 trillion yuan in the first half of 2025, reflecting a 15.3% year-on-year growth [11][17]