Zhang Jinsong and Li Meng. Empirical analysis on the effectiveness of the profit mode of e-commerce enterprises. Dynamic Systems and Applications 29 (2020) No. 10, 3052 – 3073

https://doi.org/10.46719/dsa202029108

ABSTRACT.
The profit mode of e-commerce enterprises can give play to the core competitiveness of enterprises, which is also an important strategic preparation for long-term development. This paper, firstly utilizes the DuPont method to establish a formal description of the profit mode for e-commerce enterprises. The profit mode is defined as Return on Equity (ROE) of e-commerce enterprise, decomposed into the product of Net Profit Margin on Sales (NPM), Asset Utilization (AU) and Equity Multiplier (EM), and so divided into three kind models by contribution level of NPM, AU and EM, namely Sales profit model, Operational profit model and Financial profit model. Secondly converts the multiplicative of the three kind models into additive by logarithmic transformation, the three kind models are established by the linear regression analysis methods. Finally, three kind profit models are the most effective and stable by the empirical analysis, may be better promote development of e-commerce enterprises.

Keywords: E-commerce enterprises. Profit mode. Profit model. Effectiveness.