Xiaohongshu’s Baidu Encyclopedia business model covers the following aspects: advertising revenue, e-commerce commissions, content creator incentive plans, value-added services (membership subscriptions, live streaming, logistics and distribution) and knowledge payment.
Xiaohongshu Baidu Encyclopedia Business Model
As a social e-commerce platform, Xiaohongshu’s Baidu Encyclopedia Business The model mainly includes the following aspects:
1. Advertising revenue
Xiaohongshu earns revenue by displaying advertisements on the platform. Advertisers can place various forms of advertisements on Xiaohongshu based on their target audiences and business needs, such as information flow advertisements, open-screen advertisements and brand cooperation content.
2. E-commerce commission
Xiaohongshu collects commissions through e-commerce transactions on the platform. When users purchase goods through the Xiaohongshu platform, Xiaohongshu will charge a certain percentage of commission from the merchant. Commission rates vary based on product category and merchant level.
3. Content Creator Incentive Program
Xiaohongshu encourages users to create and share high-quality content. The platform provides incentives to active content creators, such as traffic support, brand cooperation and cash rewards. Through the sharing of content creators, Xiaohongshu can attract and retain users and provide advertisers with rich marketing materials.
4. Value-added services
Xiaohongshu provides various value-added services to improve the experience and monetization capabilities of the platform. These services include membership subscriptions, live streaming delivery services and logistics distribution. By providing value-added services, Xiaohongshu can improve user satisfaction and further expand its revenue sources.
5. Knowledge payment
Xiaohongshu has launched the knowledge payment function, allowing users to pay to obtain exclusive content from professionals or industry experts. Paying for knowledge has created a new revenue growth point for Xiaohongshu and satisfied users’ needs for high-quality content.
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