TapTechNews August 1st news, LatePost reported that Pinduoduo puts GMV (Gross Merchandise Volume) at the top priority, and previously Taobao and Douyin E-commerce also made similar decisions.
In addition, Pinduoduo is considering replicating the business experience of Temu to the domestic business and trying a fully managed model in some categories, that is, merchants are responsible for supplying goods, and the platform decides the retail price to achieve lower prices more extremely.
According to TapTechNews reports, Pinduoduo was previously exposed to adjusting the automatic price following function, and the latest agreement allows the platform to modify the prices of all goods of authorized merchants (who agree to open the automatic price following function), while previously it could only modify the event prices of event goods.
In terms of advertising products, Pinduoduo previously used two products of Full Site Promotion and Standard Promotion. At the end of 2023, Pinduoduo tested a new advertising product Product Promotion and completely replaced the above two advertising products on July 29 this year.
A Pinduoduo person said that compared with the past two advertising products, Product Promotion pays more attention to accurately matching products with consumers to further improve the conversion rate.
The above-mentioned person judged that although Pinduoduo is willing to appropriately increase the proportion of free traffic in some categories in pursuit of GMV, the platform does not consider directly reducing the promotion cost of merchants, but hopes to make the efficiency of merchants' paid promotion higher to ensure the growth of Pinduoduo's business income.