Mechanism Analysis of Private Domain Traffic Operation Empowering the E-commerce Transformation of Physical Retail Industry - A Research Review and Mechanism Deconstruction

Abstract

The deep integration of the digital economy and the real economy has revolutionized traditional brick-and-mortar retail, rendering the offline passenger flow-dependent static business model increasingly obsolete. Widespread industry pain points—overreliance on public domain traffic, exorbitant customer acquisition costs, feeble user loyalty, and disconnection between online and offline operations—have severely hindered the high-quality e-commerce transition of physical retailers. Characterized by autonomous control, repeatable user outreach, low marginalcosts,andhighcustomerlifetimevalue,privatedomaintraffichasemergedasapivotalsolutionforretailersto mitigatetraffic-drivenmarketcompetitionandrealizeseamlessomni-channelgrowth.Thispaperadoptsliteraturereview, mechanism deconstruction, and comparative analysis to establish an integrated research framework encompassing research overview, transformation predicaments, empowerment mechanisms, cross-model comparisons, practical constraints,optimizationstrategies,andconcludingprospects.Drawingontwocomparativeanalyticalframeworks—one contrasting public and private domain operational models, the other examining transformation capacities of retail players of varying scales—this study systematically unpacks the internal transmission pathways through which private domain traffic facilitates physical retailers’e-commerce shift. The findings reveal that private domain traffic resolves structural transformation bottlenecks via six core channels: traffic restructuring, cost optimization, customer value maximization, cross-scenario integration, data-driven empowerment, and business model innovation. Relative to extensive public domain operations, refined private domain management better aligns with the inherent strengths of physicalretail,includingrobustofflinetrust-buildingandgeographicallyconcentratedlocalconsumerbases.Thispaper delineates prevailing research gaps and industrial transformation frictions while defining differentiated transition blueprints,offeringtheoreticalfoundationsandactionableguidelinesforthedigitalupgradingofbrick-and-mortarretail andthesystematicdeploymentofprivate domain operationalecosystems.