Detailed explanation of B2B cross-border e-commerce model: types, operations and innovation
Definition of B2B cross-border e-commerce model
B2B (Business to Business) refers to the cross-border e-commerce model of merchants (generally referred to as enterprises) to merchants, that is, the exchange of products and services between enterprises through the Internet. This model not only covers the release of supply and demand information, ordering and confirmation, payment and bill issuance, transmission and receipt of bills, but also includes the process of determining distribution plans and monitoring distribution.
Main types of B2B cross-border e-commerce
Vertical B2B model
The vertical B2B model is directly oriented to manufacturing or business and can be divided into two directions: upstream supply relationship and downstream sales relationship. The former is like Dell’s cooperation with upstream chip manufacturers; the latter is like Cisco’s relationship with its distributors. Such websites are similar to online stores, where businesses promote their products to facilitate transactions.
Integrated B2B model
The comprehensive B2B model is oriented to the intermediate trading market and concentrates similar transaction processes in various industries on the same platform for purchasers and suppliers. Websites in this model do not own or operate products, but provide a platform for both parties to communicate, such as Alibaba, Made in China, etc.
Self-built B2B model
The self-built B2B model is built by industry leading companies based on their own informatization construction, and a cross-border e-commerce platform is established around their product supply chain. This type of platform connects the entire industry chain, but is relatively closed and lacks deep integration.
The operation model of B2B cross-border e-commerce
Trading platform services
Alibaba, Made in China, Global Market Group, Dunhuang.com, etc. are well-known domestic B2B cross-border e-commerce trading platforms, providing functions such as information release and transaction matching.
Logistics solutions
Cross-border e-commerce logistics methods include express delivery, overseas warehouses, dedicated express delivery, China-Europe railway multimodal transport and postal parcels. The “cross-border e-commerce + overseas warehouse” model is becoming increasingly popular.
Payment Services
There are various payment methods for cross-border e-commerce, including bank transfer, credit card and third-party payment. B2B business mainly relies on traditional offline modes for payment, while B2C uses more online payments.
Full-process B2B cross-border e-commerce service platform
This type of platform integrates sales, logistics, finance, customs clearance, tax refund, foreign exchange, and after-sales services, integrates banking, insurance, commodity inspection and other foreign trade resources to provide one-stop foreign trade services.
Innovative model of B2B cross-border e-commerce
Online trading mode
Represented by Alibaba AliExpress and Dunhuang.com, the online transaction model introduces the concept of commercial real estate into B2B business, attracts companies to settle in through the platform, and jointly promotes and reduces costs.
Independent e-commerce model
The independent e-commerce model provides traditional foreign trade companies with a transformation tool, helping them build a “front store and back factory” model, get rid of price wars, and increase profit margins.