Shangpin Earns Gross Profit Margins of 35%-40%

DoNews, 11/22/12

David Zhao, CEO of Beijing-based luxury e-commerce site Shangpin, recently disclosed that orders on Shangpin's membership luxury discount website Aolai.com average RMB 2,000 each, while orders on Shangpin.com average between RMB 1,600-1,700 each, ranking first among domestic e-commerce websites. Shangpin's overall gross profit margin is currently between 35%-40%. Zhao added that Shangpin has steady cash flow following three rounds of funding, and plans to launch a large-scale promotional campaign in 2013.

Regarding distribution, Shangpin currently partners with third-party couriers such as S.F. Express and FedEx to provide same-day delivery in Beijing and Shanghai. Shangpin has warehouses in Beijing and Shanghai. Storage and distribution costs per order are under 3%, according to Zhao.

Keywords: e-commerce Internet margin Shangpin luxury David Zhao Aolai logistics

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