First of all, it needs to be clear that the Internet is just a tool, and it can only help you start a business. In some operating costs, its cost will be low, but it can't solve your core cost. Let me give you two examples to illustrate:

Tools to reduce costs: For example, if you want to open a fast food restaurant now, you can use some Internet tools to help you operate, such as ordering food online by new customers, so that some people may avoid 5 yuan. But if you don't have a tool, you can't judge who is a new customer, and you can't serve old customers well. From this perspective, you can reduce your cost.

the internet market can't reduce costs: for example, if you want to open a clothing store in Taobao now, the cost of opening a store may be very low or even free, but the cost of obtaining customers is almost the same as that of opening an offline store. How to understand? For example, if you sell a pair of jeans, in order to make your jeans visible to users at the front, you have to bid for the ranking. Because of the size limitation of the mobile phone or computer screen, the average user will choose the goods after flipping 2-3 pages, so the merchants will fight for the position in this excellent position, so the price will be raised, so the cost cannot be reduced on this.

the main reason why internet companies can reduce their costs is that they make good use of internet tools, which reduces their marginal costs to zero. Secondly, they use internet thinking, and when making products, they are quick to run in small steps, try and make mistakes quickly with small investment, and constantly update iteratively, so as to minimize losses and maximize profits.