Talking about the Profit Model of China B2B E-commerce

If we learn from the foreign B2B profit model, China's e-commerce should have a lot of room for development, but why has China's e-commerce still stayed at the "primary stage of socialism" after so many years of tossing, and it is difficult to break through in the core profit model? And innovation? The reasons are very complicated.

From a macro perspective, the e-commerce market in western developed countries is based on a strict market order, and the support and management at the financial and legal levels are very mature. At present, China obviously does not have these conditions. Aside from the legal issue, only financial and credit issues can make e-commerce eat a lot of closed doors: China's banking system is still in a "warring country competition" stage, mutual barriers and lack of information sharing, undoubtedly limit enterprise-level e-commerce usage of.

In fact, China's strict regulation of finance makes it difficult for B2B companies to make financial breakthroughs. Therefore, no matter who they are, they must do everything possible to cooperate with banks to bypass policy restrictions.

From a cultural point of view, the logical thinking of Chinese people following thousands of years of doing business has also blocked e-commerce applications. The core of e-commerce is trading. There are many kinds of profit models around the transaction. In addition to information brokers and commission models, these models are very difficult to implement online.

There are five types of B2B e-commerce models: one is the quotation market, the website service is limited to the information level, which is the mode of most domestic B2B websites; the other is from simple transactions (one-to-one) to complex transactions (one-to-many). The Internet plays a role in subcontracting, the seller completes the transaction through bidding; the third is to convert the information into the corresponding index, and the B2B website combines online and offline to hoard goods to earn the difference. This model is more suitable for steel and cement. The fourth is the e-commerce solution provider; the fifth is the B2B website as an intermediary, that is, a transaction intermediary.

In the field of e-commerce in China, no one is charged commission except for the former model and the fifth model. It's not that companies don't want to do it, but they can't do it at all. This is mainly related to Chinese trading habits and trading psychology: Chinese people like to face face-to-face talks. The method that everyone usually adopts is still to first understand through the network, and then to meet and talk, even if it has evolved into the Internet age, it is not easy to avoid.

Another deeper reason is the unspoken rules of Chinese business. Looking at the bulk of the goods trade in the network, in addition to futures (can be hyped), everyone likes to do business offline and not willing to trade online, because everyone wants to get oil and water. If all of them are transparent through the network, the lubricating advantage of oil and water will inevitably be greatly reduced, so this trading mode will be artificially set a lot of obstacles.

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