Taobao’s operation costs are just a labor input, just selecting products and putting them on the shelves. Some industries may need to pay a deposit, but it is generally not much, within 10,000.

JD.com is different.

JD.com’s operation costs are much higher than Taobao. JD.com’s competitor is actually Tmall, and Tmall’s prices are higher than Taobao. It’s just this simple truth.

JD.com and Tmall have very high costs. First of all, the cost of opening a store is very high, and there are various technical service fees, advertising fees, promotion fees, deposits, etc. Generally speaking, it is difficult for JD.com and Tmall to be operated by individuals, and its requirements are very high.

It is usually operated by a team or a company, so its cost is of course more expensive than Taobao, which can fight alone. First of all, the cost is high, and secondly, it has to support more people, so the profit is also a little higher.