Development trends and challenges of cross-border e-commerce B2B business
With the continuous development of global trade, cross-border e-commerce has become an important force in promoting the growth of international trade. In particular, the B2B model is gradually becoming the new mainstream of cross-border e-commerce due to its efficient matching capabilities and strong security guarantees. According to incomplete statistics, the transaction scale of China’s B2B e-commerce market reached 118 trillion yuan in 2015, accounting for the majority of the entire cross-border e-commerce market. It is estimated that by 2020, the B2B market size in the United States will reach US$9.4 trillion, far exceeding the US$3.8 trillion B2C market.
The importance of efficient matching and security
The core of the B2B model lies in efficient matching and security between enterprises. However, this model faces many challenges, such as complexity of demand, credit issues, etc. The difficulty of efficient matching comes from the diversity and customization of B2B product types, the long cycle of demand matching and business undertaking, coupled with factors such as differences in regional distribution, identity types, experience and capabilities of buyers and sellers, making this The process becomes more complex. B2B credit issues are more prominent. It is difficult to establish cross-border trust. The transaction chain is long and funds are occupied. Therefore, systematic solutions are needed in terms of credit, quality, capital, logistics, etc.
Comparison between traditional foreign trade and cross-border e-commerce B2B
Traditional foreign trade B2B business usually involves multiple links, including market research, sample design, participation in exhibitions, inquiry and quotation, contract review, product improvement, chartering and booking, document preparation and foreign exchange settlement, financing and after-sales service, etc., which requires Coordinate professionals in multiple fields to complete the project together. Although this model is relatively complex, the valuable resources accumulated over the years, such as freight forwarding, banks, insurance, customs, commodity inspection, taxation, chambers of commerce, warehousing and logistics, etc., give foreign trade companies significant competitive advantages in these fields.
In contrast, cross-border e-commerce B2B focuses more on information display and services. Currently, platforms such as Alibaba, China Chemical Network, and China Manufacturing Network provide a large amount of supplier and product information, and the number of inquiries/inquiries from buyers is a key indicator of their success. In recent years, some B2B platforms such as DHgate/eBay/Osell have begun to try integrated transactions, shortening the time to market for new products and expanding their user base through online distribution and offline global online trade fairs. In addition, platforms represented by Dunhuang.com have introduced a small-amount wholesale model based on supply and demand display, realizing a closed-loop online transaction process.
Future trends of B2B e-commerce
Currently, cross-border e-commerce policies mainly target the B2C market, while the B2B market continues to use traditional trade methods. Despite this, the development prospects of the B2B model are still broad, especially in small and medium-sized cross-border wholesale business. In order to better support the development of B2B e-commerce, platforms such as Alibaba Yidatong are committed to opening up a series of services such as supply chain, payment, customs clearance, logistics, financial credit, etc., to achieve the integration of online transactions and foreign trade services. In the future, B2B platforms will pay more attention to “near the production end, near the processing end, and near the consumption end”. Comprehensive B2B e-commerce will be oriented to the intermediate transaction market, while vertical B2B e-commerce will focus on industry segments.
To sum up, although the cross-border e-commerce B2B model faces many challenges, it is expected to usher in a more prosperous development period driven by policy support and technological progress.