How should industry e-commerce B2B websites develop?
Author: Tian Keshan, Etaoke Blog: http://jomocn.blog.sohu.com
The author has always been involved in e-commerce, participating in the planning and operation of large portal C2C, large portal B2B, as well as industry B2B and B2C models. I have always been optimistic about the e-commerce model, especially industry B2B. Currently, I am trying out B2C by selling cosmetics online, initially leveraging Taobao's platform for operations. The name of my Taobao store is "E Taoke." Some may think I'm underutilizing my talents, but that's not true.
Why did I choose to open a cosmetics store on Taobao? First, it requires less capital, which I can afford. Second, the Taobao platform already has a large number of buyers, so I don't need to heavily promote it. If I were to build my own B2C mall, it would be hard to do good business right away. After careful consideration, I decided to start with B2C on Taobao, then gradually move towards B2C and B2B platforms once the business stabilizes.
Do not underestimate opening a store on Taobao. Being able to run a successful store on Taobao is already quite an achievement because it allows you to directly grasp the customer base, understand their needs and ideas, and most importantly, generate direct economic benefits. Whether it's B2B, C2C, or B2C, the most crucial point is economic benefits. Without economic benefits, it's difficult to sustain.
However, I certainly do not aim solely at Taobao stores. After all, Taobao belongs to Jack Ma, not me, so I cannot fully control it. It is only a stepping stone, a starting point and preparation for the early stage. Once the Taobao store matures, I will gradually begin to enter the industry B2B and B2C fields.
Although I am no longer deeply involved in B2B industries, I have always believed that industry B2B has great market potential. In the future, industry B2B will develop more diversely. So what is the development model or future trend of industry e-commerce B2B websites? Currently, most industry B2B sites are imitating Alibaba, while some are relatively innovative. However, they are all information exchange platforms, either providing industry supply and demand information, focusing on industry news, or being primarily industry media platforms. There are also some industry e-commerce websites that integrate B2B and B2C models.
Think about why Alibaba entered the C2C mode? It was simply to perfectly combine Alibaba's B (business) with Taobao's C (consumer). Since Alibaba is doing portal services, it cannot completely dominate this market, so there are still many opportunities for industry e-commerce websites. So what is the future model or trend of industry e-commerce websites? I dare not say the future model is exactly what I describe. I am merely making a hypothesis based on my understanding, observation, and analysis of e-commerce.
So what is the future trend or model of industry e-commerce websites? I believe that future industry e-commerce websites should not be isolated B2B models or simply supply-demand information, industry news, and industry media platforms. I believe that future industry e-commerce websites should be a perfect combination of B and C, or direct communication and transactions between enterprises, wholesalers, and end customers. Most of what I mention here focuses on mass consumer goods industries such as clothing, food, toys, cosmetics, health products, and electronics, rather than raw materials and industrial supplies. For example, in a B2B website in the clothing industry, the current model mostly involves supply and demand information between clothing manufacturers and wholesalers. In the future, the model of industry e-commerce websites should be: still using the clothing industry as an example, in the future, e-commerce websites in the clothing industry, I believe, should not only include B2B but also C2C components. This means that while manufacturers post supply and demand information on the website, they can also post retail information, allowing end customers to directly purchase the manufacturer's products. Why do I want to add C2C components to industry e-commerce B2B websites? I believe C2C is the future trend and inevitable result of the network. I believe that in 1 to 3 years, more traditional enterprises will use the internet to promote their products and sell them via the internet, which is direct sales. Why direct sales? First, the profit margin is high. Second, it allows direct understanding and collection of customer demands. Meanwhile, many clothing manufacturers have leftover stock or substandard products that they can retail and discount online, increasing revenue and expanding brand awareness. Using the internet for promotion and sales is the lowest cost and highest efficiency method. Why wouldn't enterprises choose to use it? Although enterprises choosing the internet for retail and promotion face many difficulties such as personnel and management awareness, I feel these are just processes, not core difficulties. Since the future trend is for enterprises to use the internet for promotion and retail, shouldn't industry e-commerce websites prepare early and leverage their platform advantages to timely launch C2C models or functional channels?
Why should industry e-commerce websites introduce C2C platforms to integrate with existing B2B platforms? First, C2C is the main way and platform for future enterprise retail. Enterprises either choose to open stores on Taobao to sell products or create independent online malls for promotion and sales. Therefore, if current industry B2B websites do not introduce C2C platforms, they will miss the next wave of the e-commerce boom. Introducing C2C platforms could either be separate industry C2C platforms or integrated with existing B2C websites. Second, Chinese internet users' awareness and habits of online shopping are gradually forming. Enterprises opening their own online retail stores have significant advantages in credibility and price, although service might temporarily lag behind. Finally, Taobao, Paipai, and Baidu are entering the C2C field, indicating a promising market for C2C. Why is it promising? Because C2C platforms capture the attention and wallets of consumers, and capturing the wallets of consumers is equivalent to grasping the driving force of economic development. Lastly, enterprises opening retail shops on industry e-commerce websites can not only reduce costs for promotion and sales but also increase brand recognition and image, and directly communicate with end customers. Why wouldn't enterprises be happy with this? Moreover, the ultimate goal of enterprises is to sell products. The services provided by B2B are essentially helping enterprises promote and sell. If there is a service and platform that can directly increase enterprise sales volume, why wouldn't enterprises choose to use it?
If industry e-commerce websites introduce C2C platforms and services, how can they compete with Taobao? This is indeed a challenge. However, many industry B2B websites are thriving now, indicating that Taobao is not something to fear because it cannot dominate all markets. Industry C2C has stronger competitive advantages in service and products, being more distinctive and professional. For example, a C2C dedicated to selling clothing definitely has more advantages than the shop functions developed by Taobao, better fitting industry characteristics. The service will surely be better than Taobao's.
I am currently doing small business through Taobao. Once the Taobao business stabilizes, I can use the resources of the Taobao store to gradually build a platform! (Friends interested in exchanging ideas can add QQ: 728714839 (Note: B2B), MSN: [email protected], E Taoke: www.2264.cn)