How is Little Red Book profitable?

Commission sharing profit model.

Red Book only collects sales commission, and requires merchants to pay the deposit, and determines the commission rate and platform deposit fee in the "signing" stage of the settlement process, and returns the deposit within 3 months after the merchants apply for settlement.

In addition to Xiaohongshu's self-operated and brand businesses, Xiaohongshu also welcomes third-party individual businesses to settle in the platform. In this way, there will be a variety of value-added service fees such as plug-in rent and product advertising recommendation for shopkeepers.

Xiaohongshu is a platform to provide outbound shopping information, share shopping needs and experiences, collect talents' experiences from all over the world, and provide detailed shopping strategies for outbound shopping enthusiasts. Including tax refund preferential tourism information of different countries, brand characteristic commodity recommendation, shopping places and map index and local practical information. At present, it is a promising entrepreneurial team.

Unlike other e-commerce platforms, Xiaohongshu started from the community. At first, users focused on sharing overseas shopping experiences in the community. Later, in addition to beauty and personal care, information sharing about sports, travel, home, travel, hotels and restaurants appeared in Little Red Books, touching all aspects of consumer experience and lifestyle.

At the beginning of 20 16, xiaohongshu changed the manual operation content into the form of machine distribution. Through big data and artificial intelligence, the content in the community is accurately matched to users who are interested in it, thus improving the user experience.

As a lifestyle community, the biggest uniqueness of Xiaohongshu lies in that most Internet communities rely more on online virtual identities, and the content published by Xiaohongshu users comes from real life. A sharing user must have rich experience in life and consumption in order to share content in Little Red Book and attract fans' attention.