Although B2B and B2C e-commerce models and other e-commerce models have some common features, B2B has its own unique features. The main reason is that B2B customer behavior is driven by unique motivations and has little in common with other types of customers. Specifically, the following aspects reflect the uniqueness of cross-border B2B e-commerce.
(i) The single transaction amount of cross-border B2B e-commerce is generally large
The single purchase amount of an enterprise is generally much larger than that of a consumer, especially in the case of cross-border transactions. In order to reduce the expensive transportation, insurance, customs declaration and inspection, communication and other costs, enterprises tend to trade in large amounts. Although international orders currently tend to be small and fragmented, they are still much larger than B2C in general.
(II) Both importers and exporters of cross-border B2B e-commerce are more rational when making decisions
Since the risks of international trade are much greater than those of domestic trade and the amount involved is relatively large, cross-border traders are usually very cautious when making decisions. They spend more time and energy than domestic B2B buyers or B2C consumers to study the other party’s information. They rarely “cooperate impulsively”, otherwise it may lead to huge losses.
(III) Cross-border B2B transactions are more expected to establish long-term business relationships
Both importers and exporters of cross-border B2B are more keen to establish long-term cooperative relationships, because enterprises invest a lot of energy and cost in the process of selecting a trustworthy foreign supplier, and are more willing to maintain a solid and stable relationship with established partners. Long-term cooperation is one of the core values of cross-border B2B e-commerce. On the contrary, the business relationship between domestic B2B or B2C importers and exporters is significantly shortened, especially cross-border B2C transactions, most of which are “one-time deals”.
(IV) Pricing of cross-border B2B e-commerce fluctuates greatly
In terms of price determination, cross-border B2B does not have a fixed price, because the price depends on transportation costs, purchase quantity, payment terms, etc. Customers in different countries, orders of different quantities, and orders at different times require specific analysis of the specific situation, and prices must be set in a targeted manner. However, for cross-border B2C or domestic B2B e-commerce, since its transportation costs and payment terms are relatively fixed, the price fluctuation range is not very large, and transactions can be concluded at a fixed price in most cases.
(V) The settlement process of cross-border B2B e-commerce is more complicated
Generally speaking, cross-border B2C consumers usually pay directly online; domestic B2B transactions can be completed online or offline, and the process is relatively simple. However, cross-border B2B importers are more concerned about the security of funds and the control of transaction risks. Therefore, they may choose to settle by remittance, collection, and letter of credit. Although there are platforms that can provide online settlement, they are generally limited to small B2B transactions, and large B2B transactions are still mainly settled by traditional methods.
(VI) Cross-border B2B transactions pay more attention to the cost of transportation and the controllability of delivery time
Cross-border B2B transactions are generally large in volume. As importers and exporters, they are more concerned about transportation costs, and the transportation speed is second. Of course, cross-border B2B transactions also pay more attention to the controllability of delivery time. For example, American buyers start to make purchase plans for Christmas products in June and July every year to ensure that the goods can be delivered to terminal retailers in early or mid-December. However, cross-border B2C consumers may not make purchase decisions until early or mid-December. They are more concerned about whether the delivery speed of their orders can catch up with Christmas. In addition, the transportation of cross-border B2B transactions is mainly sea transportation, rail transportation and general air transportation, while most cross-border B2C transactions are completed through transnational postal systems and international express delivery.