Understanding the World of B2B E-Commerce | Forum

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tmogroup May 7 '15

B2B e-commerce is expected to reach $12 trillion in sales worldwide by 2020 (Source: Frost & Sullivan); the primary driver for the multi-fold growth projection in the world of B2B has been the growth of B2C e-commerce. With customers shopping on easy to navigate, personalize and convenient B2C e-commerce portals in their personal time, they have now come to expect the same when they go online to place orders during their business hours (B2B).

This changing customer expectation has been driving the rush to adopt e-commerce everywhere. But most organizations fail to realize the true potential of their e-commerce store because they jump into things without truly assessing their situation and understanding how e-commerce can help them. In some cases businesses fail to even understand what they want to achieve from it.

We will start our journey by understanding what B2B e-commerce is and what it is not. In the next few articles we will then explore the differences between B2B and B2C e-commerce, understand features that are critical and expected in the B2B e-commerce platform, look at some challenges which businesses face with B2B e-commerce adoption and conclude with possible ways to mitigate the adoption challenges.

Before we get there let us visit the supply chain ecosystem which we will then use as a reference to facilitate better understanding.

B2B and B2C

B2B (Business 2 Business) can be defined as a scenario where products and services are marketed and sold to other businesses whereas B2C (Business 2 Consumer) is where products and services are marketed and sold to end customers. In the image above the relationship between Supplier & Manufacturer, Manufacturer & Distributor and Distributor and Retailer can be considered B2B and the relationship between Retailer & End Customer as B2C.

Though very basic it can be a little tricky to understand and appreciate this difference. This is because, a Manufacturer or Distributor selling directly to end customer can very easily be misunderstood for B2B (we have seen a number of instances where the moment you have a manufacturer or distributor selling a product it is assumed to be B2B and when you have a retailer selling a product it is assumed to be B2C). While similar there is a lot of difference between the two, because you might have a manufacturer and distributor directly selling to end customer (a possibility now because of emergence of a number of e-commerce platforms and even platforms like amazon, ebay, etc.). In that case it is a B2C transaction and not B2B.

But why is this differentiation important to understand? For the simple reason being this is the base on which everything else is built on. Consider this

  • What do businesses want to accomplish?
    • Do they want to build an e-commerce store to bring efficiency in their existing setup – selling to their existing customers (B2B, in the diagram above Manufacturers eCommerce website development to cater to Distributors or Distributors launching e-commerce store to cater to Retailers), or
    • Do they want to establish a new sales channel to sell directly to their customers (B2C, in the diagram above Manufacturers or Distributors building an e-commerce store to sell directly to End Customers)

While it might not seem that way, but there is a lot of difference between the two. For example

  • In the first scenario where businesses wish to adopt the e-commerce solution to bring in efficiency catering to their existing customers, you will require your e-commerce store to provide you feature like quotations and salesperson, allow purchase on credit, etc. Also, your distributors/ retailers will be more willing to cooperate with you in the e-commerce adoption.
  • In the second scenario when you wish to adopt an e-commerce store to sell directly to your end customers the features you require will be entirely different. You will also face a lot of resistance internally for e-commerce adoption because this new channel will be perceived to eat into their commissions. Your Distributors, Resellers, Retailers and internal sales will feel left out because you can directly reach your end customers without their help. goo.gl/RD6lVc

This does not end here; the other features and challenges you face in these two scenarios are very varied. Hence it is very important to understand the difference and identify the objective that you want to achieve.

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Business-to-business (B2B or, in some countries, BtoB) refers to a situation where one businessmakes a commercial transaction with another. This typically occurs when: A business is sourcing materials for their production process

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jing.zhou Jul 19 '18

A unique feature of Chinese eCommerceis its connection with social media. Therefore, opening a WeChat Store could enable business to successfully sell to Chinese consumers. For that reason, this fourth article in our series ‘China eCommerce Insights 2018’ we will guide you through the basics of setting up a WeChat store. If you have missed any of our previous articles, then please take a look at the related reading at the end of the article.



In 2011 Tencent released WeChat, which to foreigners is primarily known as a messaging app. However, it is better characterised as a superapp which has become the lifeline of 900 million daily users across China. Its functions have grown to include WeChat Pay (allowing users to pay their bills without leaving the app), order food and taxis, book appointments, purchase tickets, and much more.

By using unique social media applications, such as WeChat, companies can both sell and engage with their customers/followers on one overarching platform which is deeply embedded into everyday Chinese lives.


Why sell on WeChat?

It would be only natural that any brand would be interested in using a social platform with 902 million active daily users. What’s more, the app seems to bring seemingly unlimited business opportunities, it has easy-to-share social attributes, it attracts more and more brands to the WeChat platform, and WeChat eCommerceis becoming a brand multi-channel strategy.

However most importantly, opening a WeChat Store presents an excellent growth strategy. To be specific, brands who have yet to enter the public eye of Chinese consumers can strengthen their brand influence through social media. After all, without brand awareness, relying solely on a big platform for higher traffic will be of no use.

Additionally, WeChat eCommercecan also enable you to focus on a specific target group and better understand your customer and learn about their desires, whilst building a long-term relationship.


What are my options?

Apart from a WeChat personal account we can characterise 4 different official WeChat accounts, of whom 3 are suitable for eCommerce.

  • A WeChat subscription account allows you to send one push message per day to followers. However, you are less visible as subscription accounts are nested under the subscriptions folder.
  • A WeChat service account appears as a friend in the chat section, making them extremely visible. What is more, service accounts have additional features such as voice recognition and the ability to generate multiple QR codes. On the downside, however, you can only post 4 messages per month.
  • WeChat mini-programs were newly launched in January 2017. There are virtually no limits to the functionalities of mini-programs. But since they are basically just an app, you are not able to acquire followers and cannot send push notifications, and are not likely to gain much exposure. 

How to create a WeChat official account

In order to open a WeChat Store you need a WeChat official account. What is more, you must couple your verified account to WeChat payment platforms in order to open an in-app store.

To put it simply, there are 3 options to create a WeChat official account:

1. Registering using your overseas business license (special application process).

This process will take between two and three months and only companies from Hong Kong, Macau, Taiwan, Japan, Singapore, South Korea, Thailand, France, the U.K., the U.S., Canada, New Zealand, Malaysia*, Germany*, Italy*, Vietnam*, Finland*, the UAE*, Indonesia*, Cambodia*, the Netherlands*, Philippines*, and Russia* can sign up. Where the countries with an asterix must invest U.S.$ in WeChat advertising.

2. Apply for a Chinese businesslicense – register using your Chinese license.

First you must register as a foreign entity in China and open a public bank account linked to your business license. Having a Chinese WeChat official account will lead to greater functionality but it is a costly and time-consuming process.

3. Use a third-party license to create an official account.

Via this option, your account will display your name, description, and logo. However, it will be linked to the legal entity which created the account. This is the quickest option to establish your WeChat official account, but Chineseconsumers might be wary your account is not linked to the official coupled business license.


Which option suits you?

Comparatively opening up a WeChat Store via a service account gives brands a lot of creative space to manoeuvre and interact with their customers. Furthermore, customer behavioural data is easily accessible and shared with official account holders, creating high potential for customer relationship management.

On the other hand, the mini-program is effectively an app inside another app. As a result you will no longer have to download new apps, making it a strong alternative for H5 and mobile applications.


How can we help, you might ask.

Firstly, you may be inclined to use our service to build your H5 E-shop. Having an eCommerceshop with H5 allows flexible design and layout. Additionally, these platforms often provide an improved navigation experience then linking your stand- alone website or third-party platform to your WeChatofficial account. On the right you may observe an example of an eCommerce shop developed with H5 by our personal development team. Through our own development we are able to provide features like WeChat auto login, WeChat integration, custom user interface design, multi-language stores and differing campaign stores, an optimised check-out system, SMS and WeChattransactional messaging, payment integration, and our special platform designed for advanced eCommerce analytics (see image below). 

Secondly, we would like to take a look at the option of developing your mini-program. Mini-programsare fairly similar to H5 eCommerce shops in terms of capabilities and strategy, however, some key strengths is the faster loading speed and data can be stored within WeChat’s ecosystem (see example of a mini-programbelow). Also thanks to mini- programs it has become possible to insert hyperlinks in the content of your moments, allowing businesses to promote their brands even more.

We will also briefly give some of our own insights into the key differences between H5 E-shops and mini-programs. Firstly, as mini-programs are fully integrated within the WeChat ecosystem, loading time is optimised and the number of clicks between product and payment is faster. Moreover, mini- programs can be found in seven different ways, whilst H5eCommerceshops can be found in four ways. On the downside the development time and cost of mini-programs might be slightly higher comparatively. Another disadvantage is the inability to run PPC campaigns linked to a website while using a WeChat mini-program. Additionally, mini-programs are only compatible with WeChat Pay, whereas H5 eCommerceplatforms may support other options. Finally, mini-program creation relies on Tencent approval and therefore might require more paper- and administrative work. 

Feel free to take a look at our WeChat solutions and how we can assist with developing your WeChat store

Would you like more information on China cross-border eCommerce, or would you like to enter the Chinese market? Then feel free to contact us for a Market Opportunity Scan or for an eCommerce Strategy Development 

Email :info@tmogroup.asia                                                       

Tel: + 86 (0)21 617 00 396

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