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B2B e-commerce considerations

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The core tip: B2B's ups and downs in China can be described as ups and downs, from being questioned in the beginning to becoming a hot air, becoming a favorite of entrepreneurs and capital. Although many platforms have succeeded in the development of B2B
B2B's ups and downs in China can be described as ups and downs, from being questioned in the beginning to becoming a hot spot today, and becoming a favorite of entrepreneurs and capital. Although many platforms have become cannon fodder on the road of B2B development, they still cannot stop the progress of B2B enterprises. Let's analyze a few questions about B2B e-commerce.

The first guess—whether the B-side platform traffic has commercial value

In other words, is the traffic at the B-side e-commerce business valuable?

Then there is a concept that we are all doing now. It seems that the larger the flow, the happier we are and the more attracting capital investment. However, the B-end e-commerce has a feature. Most platforms do not have the ability to redistribute traffic. The traffic itself does not necessarily generate value, only the ability to trade. However, if the traffic generates profits for your platform, the traffic must have the value of secondary distribution. Who gives me the money and to whom I distribute the traffic, I think this is the secondary distribution capacity.

On the current B-end platform, the secondary distribution capacity of traffic cannot be said to be absent, but it is very small. At this time, it is necessary to start to wonder whether the B-side e-commerce is really an e-commerce, it may be just a commercial electronic tool. You can think about it. If the B-end does not have commercial value and does not have the ability to redistribute, for example, if it depends on the B-end payment to exist, you must think about where my ability to allocate traffic is. Maybe your traffic is huge, but if you don't have secondary distribution capabilities, you don't have commercial value.

The second conjecture: Is the B-side e-commerce without the participation of the manufacturer complete?

It is that the current B-end e-commerce rarely has upstream manufacturers' participation. If there is no manufacturer's participation, I think the manufacturers have huge control over the distribution. And there is currently no irreplaceable part of the flow, because for so many years in the business, we have been constantly changing dealers. Without the participation of manufacturers, your business will never start. If your starting point does not exist, you are purely a second-hand platform, what is your survival value.

The third conjecture: which trading relationship of FBbR will become mainstream

At present, there are four parties in our entire distribution chain: manufacturers, distributors, second batch merchants, and retail stores. These four relationships will extend to the underlying models.

At present, it seems that there are various models, whether they coexist or whether one model will become the dominant dominance in the future, and then the other will disappear. I think there must be a mutual squeeze effect between these models. This is bigger. , The others will be squeezed. So in the end, the coexistence model or the last form of the squeeze model dominates. This is currently very different.

The fourth conjecture: Is the main body of e-commerce in B-side centralized or distributed?

We see that the C-end e-commerce is basically centralized, and it has formed a monopoly. So many of us at the B-side e-commerce are doing this, and the bigger we do, the more centralized we seem to be.

However, due to the natural regional nature of Chinese commerce, the fragmented structure so far has a great advantage for our centralized commerce is that it can force upstream manufacturers. Which of these two is the mainstream in the future? Now we see that almost all verticals are based on scale, so the choice is centralized. However, most service providers will choose distributed because the differences between distributors in each region are too large. It is necessary to serve the regional distributors with different characteristics through a distributed method. So which one is more competitive in the future, I think this is also a big difference.

Fifth conjecture: How high is the concentration at the B end?

Because the C terminal has a characteristic, which is basically called the 7-2-1 structure, the boss accounts for 70%, the second child accounts for 20%, and the other accounts for 10%. Many people on the B side are imitating the logic on the C side, saying that I must be the boss, and I will die if I do not become the boss.

Is that really the case? Maybe the boss is dead and you are not dead yet. So is the B-side logic centralized or will there be multiple platforms to choose from in the future? If your service on this platform is not good, I will move to the second platform. If the efficiency of your platform is reduced, I will run to another platform. What is it like? I dare not draw conclusions because the 10 differences I talked about today are all ways to find out and let everyone think.

Sixth conjecture: Is the B end a weapon that subverts the agent or the agent?

The sixth conjecture is what is our role on the B side. Do we want to kill the dealer and become a dealer, or do we help the dealer ourselves?

If you go to help the dealer, you have to cooperate with the dealer. If you go to kill the dealer, why does the dealer cooperate with you? If you kill the dealer, you can't connect the manufacturer's channels again in the short term, the manufacturer may Will not continue to work with you.

In other platforms, the implicit logic is to help you get rid of dealers. Many people can see the hidden things. At this time, we must know what role we are. Don't say that working with you to let me pay, on the other hand, we will kill you.

So now there are robbery talks and tools that robbery talks about killing you and becoming a new dealer. If you become a new dealer, do you have the efficiency and low cost of a traditional dealer? Traditional dealers are low-efficiency but low-cost. You may not be able to achieve low cost and high efficiency.

Seventh conjecture: Can the B-side platform control agents?

Because many of our B-side service retailers now even fragmented retail, we want to chain them in some way. Of course, the B-side itself does not have this ability. Then we need to do C-end, so there are a lot of people who do B-end work on C-end. I call it community e-commerce.

Community e-commerce is probably the hardest e-commerce I think at present, even harder than the C-end like Taobao, then this logic may be established, but you can't afford this difficulty. We recently heard that many B-end platforms will open retail stores after financing. Is it possible to assume that because your C-end is difficult to control, I might as well open the store myself. But China ’s retail stores are a very low-cost business model. They are small stores. If you open a retail store without a scale, you may have independent traffic, but how significant is it for the platform?

Eighth conjecture: Is the B-side vertical or platform-oriented?

What we do is basically vertical. Vertical means you become a new dealer competing with an existing dealer. Similarly, you mainly use the B-side platform, and the cost is not necessarily available, so this is a question of how to balance the two.

The ninth conjecture: Where does the current industry upgrade help?

The tenth is strictly not a conjecture, because now whether it is a manufacturer or a merchant, we are now facing a problem when promoting the B-end. Our sales are declining and our expenses are increasing. In the case of declining sales and growing expenses, you have also asked me to do something I am not familiar with, that is to say that the B-end is not a comprehensive solution for dealer transformation so far. Since it is not a comprehensive solution, who can provide a comprehensive solution for transformation, does the B-end have it? Can you take only one medicine to cure the manufacturer's disease? At this time strictly speaking, dealers and manufacturers are a syndrome. At this time, you can provide a recipe for whether the dealers and manufacturers can accept it.

In the end, let me talk about my point in a few words. The B-side e-commerce is a very confusing thing, because it is something that is not clear. I divided it into three and everyone would easily accept it. The first is an ordering system, management system, or SaaS system, which is an efficient, low-cost Internet-based distribution logic. Second, it is a platform-based unified warehouse distribution system. This distribution system may save more than half of our logistics costs. The third is when our business financing is difficult, with data credit on the Internet and credit with traffic support, making you a tool to connect with the financial market. One is a tool for deep distribution, one is a logistics tool to improve efficiency and save costs, and one is a financial tool. If these three tools are combined, can we solve the problem for our current dealers?
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