more traffic ≠ more profit

If you’re into TikTok, you’ve probably noticed a ton of Japanese traveling videos recently – beef tataki, tonkatsu ramen, sumibi yakiniku, gyoza, kaisendon, atsugiri tan, etc

🤤

The Japanese Yen has been lingering at 143~150 to a dollar for the past few months. To put this in perspective…

If you compare traveling to Japan in early 2023 vs now…

It’s like getting 15% off EVERYTHING!

The result?

In January 2024 alone, Japan had 2,688,100 international visitors!

That’s A LOT of traffic…

So, from a business point of view…

More traffic = More Sales = More Profit

That’s a good thing… right?

Well, not so fast.

Because the currency discount is making it very hard for local businesses to sustain. Not to mention the pressure on public transportation, the environment, and the service industry.

And this is a problem a lot of e-commerce overlook as well.

Most e-commerces rely on heavy discounts to drive their sales.

15% off for subscribing…

25% off for Birthdays…

50% off for Valentine’s Day…

80% off for Black Friday…

On the surface, the business is thriving due to the traffic surge.

But in reality…

The business is dying a slow death due to the diminishing profit.

(no margin, high cost, slow delivery, no customer support)

Alternative:

Be very careful about using heavy discounts. Instead, find out how to sell your product without giving away all your profit.

Cheering for you,
Wuyen