the “siphon effect” of live e-commerce: the dilemma of balancing interests between leading e-commerce companies and suppliers

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leading e-commerce companies have a certain advantage in negotiations through their strong fan base and live broadcast sales, so as to obtain lower product prices, thereby increasing attention and sales. this model seems to be conducive to improving the overall profit of the platform, but it also causes the problem of the "siphon effect" of the market.

benefit distribution and market order

lawyers from liu wenhua law firm pointed out that leading e-commerce companies take advantage of their market dominance to lower prices too much when negotiating with suppliers, which may lead to a "siphon effect" on the market and ultimately affect normal market order.

in addition to the legal aspect, esg also pays attention to the social impact of this business model. lang hua believes that a business model that lacks value sharing will cause direct risks, such as tensions between leading e-commerce companies and suppliers, suppliers facing operational difficulties or even bankruptcy, which will eventually lead to supply chain disruptions and have a negative impact on consumers.

real economy and community life

some scholars pointed out that the "siphon effect" brought about by the low-price model of live e-commerce may squeeze the real economy and weaken the vitality of community life. some residents regard going to the vegetable market to buy vegetables as a lifestyle, and this lifestyle may also weaken with the diversity of the business environment, ultimately affecting the diversity of community life.

social responsibility and future development

in the face of these problems, leading e-commerce companies need to shoulder more social responsibilities. they should seek a more balanced profit distribution mechanism, avoid excessive pursuit of their own profits, and actively support the development of the community economy.

"it is not advisable to dominate the market", this may be the direction of thinking about future business models. whether it is natural sustainability or social sustainability, we need to work together to build a more fair and harmonious social environment.