Alibaba's operating model follows a step-by-step process. First, grasp the basics, and then constantly capture new revenue opportunities during the implementation process. From the most basic setting up sites for enterprises, to the subsequent website promotion, as well as auxiliary services for online trade credit, and order management of the transaction itself, it continues to extend.

The excellent profit model meets the following requirements: strong, sustainable, and expandable profits. Setting up corporate sites or thinking that setting up corporate sites is not unusual. But what is important is not what to do, but how to do it.

Alibaba's success experience is simply as follows: Alibaba's success has three points in terms of business operations. The first is "China Suppliers", the second is "Integrity Pass", the third is "Alipay" (although it exists independently of Alibaba), and the fourth is "Online Advertising". Of course, the first three are the key, and the latter is just the natural result of its brand influence accumulation and traffic growth.

Alibaba model: online transactions, offline distribution, Alibaba is known as the world's largest online trade market. Therefore, Alibaba can be regarded as the representative of e-commerce.

Business activities include four flows, namely information flow, business flow, capital flow, and logistics.

The so-called information flow refers to the information of commodities. Traditional commerce transmits the information of commodities through physical objects. The so-called shopping mall is first of all a medium, a medium for transmitting commodity information. The mall puts all kinds of commodities there, and customers go to the mall to purchase, and first receive commodity information by looking at and touching them.

However, this is an extremely expensive information medium. It requires expensive stores and requires a large number of expensive commodities to be placed there for a long time. Not only does it take up a lot of funds, but there will also be huge depreciation every year. Many commodities become waste after being placed for a few years.

E-commerce replaces physical information with electronic information. For example, if people want to read a book, they don’t necessarily have to put a real book there, but put relevant pictures of a book and add various explanations. Using electronic information instead of physical information will naturally save huge information transmission costs. This is an important reason why e-commerce is superior to traditional commerce.