In the past, the platform only knew supplier and product information. The purchaser could only see the inquiry and price information, but could not know whether the transaction was completed, how the transaction was completed, the transaction price, and the payment method. Without the support of these data, it was impossible to provide further information. Customs clearance, foreign exchange settlement, credit insurance, financing and other services. A comprehensive “delivery service” platform for foreign trade must cross the key “transaction” threshold. The fundamental reason why it is difficult for B2B in large-scale foreign trade to achieve a closed loop is that there are complicated cross-border liability recourses among platforms, sellers, and buyers. Many traditional and complex trade rules are used to deal with these default risks.
Earlier, Dunhuang.com was established, aiming to provide cross-border B2B transaction services; Alibaba transformed from an information platform to a transaction and comprehensive services; in 2015, Amazon developed Amazon Business (Amazon Business Procurement Site) and opened it to the third Used by third-party manufacturers and sellers, they hope to copy the B2C shopping experience into corporate procurement.
But the real “vital” lies in data, including supplier and product data, buyer demand data, and transaction data. Once the latter two data are obtained, the platform will recommend so-called high-quality suppliers to this customer. Increase advertising opportunities, then conduct ratings and increase the number of inquiries; at the same time, recommend logistics channels, such as more economical routes for consolidation, overseas warehouses, etc.; finally, provide financial value-added services based on credit status, such as running water loans (credit financing), letters of credit Financing, credit policy financing, etc. This is a well-known routine.
But the problem is that traders don’t want to give up customer data. Now, Alibaba has launched services such as trade financing, credit loans, Alibaba Credit Insurance, and Yidatong based on Yidutong’s delivery data, creating an ecosystem in the field of foreign trade and integrating more supporting services. For example, logistics provides shipping LCL, air transportation, express delivery, land combined transportation, etc., forming a “order placement – customs declaration and inspection, collection and settlement of foreign exchange – platform advance tax refund – foreign trade service subsidy issuance and settlement”.
The basic services of Alibaba One Access are free, and certain subsidies are also provided! This initiative completely subverts the traditional foreign trade agency industry. After all, it handles customs declaration, inspection, foreign exchange settlement, tax refund and other procedures for customers. Sometimes there is a certain cost. Amazon B2C is this way, supported by traffic. Now, the basic service of the “money-burning” Internet model is the “traffic entrance”. Once it is opened for free, a large number of small and medium-sized enterprises will flock to the One-stop service platform. This will create a huge value-added service market: logistics and finance. Gather the needs of tens of thousands of foreign trade companies and negotiate with relevant logistics companies and financial institutions to obtain lower rates.
Alibaba is currently the world’s largest cross-border e-commerce ecosystem. It has had a cross-border export e-commerce platform since 1999. Its core businesses in the international B2B market include: business opportunity search and browsing, dedicated domain names and shops, Supplier certification, online business activities and training, offline exhibitions and publications, management software and trade links, etc.
Alibaba Group’s cross-border sector has initially developed into international B2B (Alibaba.com, import and domestic trade wholesale 1688.com), international B2C (Aliexpress, Taobao Overseas, Tmall International) ), international payment (international versions of Alipay and ESCROW), logistics (Cainiao Network) and comprehensive foreign trade services (Yidatong) and other cross-border ecosystems for the interactive development of applications and services, with many participants (buyers, sellers, platforms , service providers), complex relationships (information, transactions, services, supervision).
Concerning B2B payment security, traditional letters of credit are highly professional and low in timeliness, while T/T wire transfers lack guarantees. B2B payment focuses on solving the problem of payment security and account sharing of funds, which requires revolutionary changes. Third-party payment is not suitable for Class B companies. Most Class B transactions are bulk commodities, with long transaction cycles and complex processes. Many companies require buyers’ payment to organize production. The deposit method will cause sellers to be short of funds.
Avoid the deposit method, but provide guarantee money by granting credit to the supplier. During the transaction process, the seller uses the guarantee money to guarantee the transaction. If the seller has a problem, use the guarantee money The buyer is paid directly to the buyer, and the platform then seeks payment from the seller. Transaction data serves as a reference standard for future enterprise credit, providing financing credit certificates for transactions between enterprises and financial institutions such as banks and guarantees. Buyers are spared the process of inspecting goods and factories. It is enough to trust this “intermediary”, which not only ensures safety but also improves trade efficiency.