Social Commerce: Pinduoduo combines social networking with online shopping, making it a more interactive and engaging platform. Pinduoduo’s business model is based on three key principles: Over the years, Pinduoduo has registered a staggering growth, which, some suggest, may be even faster than its established counterparts, such as Alibaba and JD. Though the agriculture-based e-commerce platform is yet to bag its place outside China, the US has already listed Pinduoduo on its stock exchange. It then earns revenue for fostering those transactions. The suppliers are the merchants on its platform. What this business model is, it matches buyers with suppliers. The company functions as per the marketplace business model. Pinduoduo earns money from several online marketing services, transaction services, and merchandise sales. In this blog, we will explore the Pinduoduo business model, how it works, and the reasons behind its success. The platform has disrupted the traditional e-commerce business model by introducing a social commerce concept that focuses on group buying, referral marketing, and gamification. Pinduoduo is an e-commerce platform that has gained immense popularity in China since its launch in 2015. Social commerce and affiliate marketing fits into the Pinduoduo business model. While Alibaba is the greatest example, another company, Pinduoduo, has been making waves in the Dragon nation, amassing the largest number of active users. Several Chinese startup platforms have gone big in recent times, recording tremendous year-on-year growth, and influx of millions of active users.

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