The 618 Mid-Year Shopping Festival that has just ended was more fiercely competitive than any previous year. In this smoky competition, the e-commerce industry has begun to reflect: What is truly low-cost?

Nowadays, the promise of "the lowest price on the entire network" is common on various platforms, and merchants seem to have fallen into a vicious circle where price is king. It can be said that this year's 618 did not have the lowest price, but only a lower price.

As a result, everyone found that business was becoming increasingly difficult, and many users were not too keen on this kind of low-price competition. Some netizens pointed out succinctly: "Low price should not be synonymous with low quality. If the quality of the purchased product is poor, no matter how low the price is, it's useless."

Low price is not a simple numbers game; only when both price and quality are truly guaranteed can it be called truly low-cost. Otherwise, price wars will only bring temporary prosperity, followed by a surge in return rates and damage to the merchant's reputation.

For example, during this year's 618, there were many news stories about the soaring return rate of women's clothing sold through live streaming e-commerce and users complaining about poor clothing quality. This numerical game of low-price competition is beginning to reach a critical turning point.

On this issue, e-commerce platforms and merchants need to change their thinking and shift from pure price competition to value competition.

As JD.com said, true low-cost is not a reduction in quality or a subsidy at the expense of profits, but achieving "cost reduction and efficiency enhancement" through optimizing the supply chain and improving operational efficiency.

Strengthening supply chain efficiency is the only solution to achieving low prices. Looking at those retail companies that have achieved truly low prices, each one has a unique supply chain or business model.

JD.com emphasized good products behind the low prices this year, pursuing both good quality and low prices. Behind JD.com's continuous reinforcement of JD Logistics, many people only see fast delivery, but overlook the supply chain efficiency it brings.

Vipshop also has over 46,000 brand partners. These brands are connected through professional buyer teams, directly linking with brand owners or first-tier distributors to ensure the quality and cost control of the products. With 10 overseas offices worldwide, Vipshop can understand in real-time which region offers the cheapest prices for different brands. The establishment of the special sale supply chain allows Vipshop to offer at least a 30% discount on seasonal new products from brands, and most classic and evergreen styles from well-known brands often have discounts of 70% or more.

To reduce costs, Costco has created its own brand, Kirkland Signature. Its large membership base also provides Costco with strong bargaining power to offer users a variety of cost-effective products.

Of course, achieving true low prices is not something that can be accomplished overnight. E-commerce platforms need long-term investment to continuously improve supply chain construction, increase operational efficiency, and optimize consumer experience. Only in this way can they remain invincible in the fierce market competition and establish a trust relationship with consumers.

The essence of retail is service, and low prices are only a sign to attract users. In the future, all low-price competitions in the e-commerce industry will ultimately come down to supply chain competition and service.