FindSteel.com achieved profitability last year: Steel e-commerce is profitable
2021-04-07
Since its full-scale rise in 2012, steel e-commerce has quickly eliminated the information asymmetry of traditional steel trade and compressed the intermediate links of multiple agents, allowing steel mills to directly face users and significantly improve supply chain efficiency, thanks to its advantages of transparent prices and efficient information. However, it is worth noting that although the industry prospects are broad, the gross profit margin of steel e-commerce has been low, business models are highly homogeneous, and profit models are unclear, with most companies operating at a loss and relying on continuous financing and capital market infusions to maintain their development. Therefore, as the first steel e-commerce company to announce that it achieved profitability in 2016, Zhaogang.com not only broke the market's doubts about steel e-commerce's "money-burning and unprofitable" nature but also was the first to fire the starting gun for the industry to achieve profitability.
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