So Amazon has focused its efforts on these constants -- ws number list giving customers the most benefit. Therefore, the question of how to increase sales and expand the market size has become, how can we reduce the cost of our goods. The cost of a commodity can be ws number list simply described as the sum of transaction costs and production costs. For example, let's say your item costs $10.
Of the 10 yuan, suppose there is a transaction cost of 7 ws number list yuan and a production cost of 3 yuan. So in the growth period, is it easier to reduce 2 yuan from the 3 yuan production cost, or is it easier to reduce 2 yuan from the 7 yuan of transaction costs? Naturally, it is ws number list easier to save from the transaction cost of 7 yuan. To reduce the cost of goods, do not focus only on production costs, but also on transaction costs. Transaction costs were proposed by ws number list the famous economist Coase, for which Coase won the Nobel Prize in Economics.
How to reduce transaction costs, from a macro perspective, ws number list you should always pay attention to the changes in some new production relations. The emergence of new technologies and new productive forces is mainly to optimize the "3"; while the emergence of some new ws number list production relations is mainly to optimize the "7".