M2C (Manufacturers to Consumer)
The M2C model is Manufacturers to Customer. This model refers to the use of platform investment promotion and the opening of the platform to allow various international brands to settle in. For example, Alibaba has introduced national pavilions such as South Korea to settle in Tmall International and announced cooperation with supermarket brands such as Costco. The characteristics of this model are “direct sales, direct purchases, and direct mail”. Cross-border e-commerce platforms help foreign retail industries connect with domestic consumers. Foreign manufacturers sell directly to domestic consumers, and domestic consumers make direct purchases.
The “overseas shopping” model used by domestic consumers in the past has many shortcomings. The complex purchase process, language barriers in communication, currency exchange in payment, commodity forwarding logistics, and 30 to 45 days of delivery time have all hindered the development of “overseas shopping”. The M2C model platform also requires that the logistics information of overseas merchants can be tracked, and there are also requirements for delivery time, which improves the shopping experience of consumers. The M2C model solves the language barriers, payment inconveniences, and lack of after-sales guarantees that domestic consumers previously encountered when purchasing goods across borders.
However, the M2C model also has defects. The M2C model has impacted wholesale markets and national online shopping malls in various places, disrupting the price chain. A large part of the wealth created by society is currently consumed in the circulation link, which hinders the release of consumption. However, if these links are released, a large number of dealers and physical stores will face bankruptcy.
B2B2C Bonded Zone Model
The B2B2C model is Business to Business to Customer (supplier to e-commerce platform to consumer). The bonded zone model refers to the bonded warehouse stocking model. Merchants prepare goods in batches from abroad to domestic bonded warehouses in advance, and then ship them to consumers from the bonded warehouse after customers place orders. The B2C direct mail import model means that after the customer places an order, the merchant directly sends the goods back to China from abroad, and the goods are delivered by domestic express delivery after customs clearance. The advantage of the B2B2C model is that it is convenient and has no inventory pressure, and the delivery time is greatly shortened; the disadvantage is that B2B2C implements general trade in the name of cross-border e-commerce, and its long-term value is worrying.