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The author often communicates with distributors from various regions about B2B transformation topics, such as the feasibility of business models or difficulties and problems encountered during operations. Distributors from different industries and with different resources have vastly different transformation models, but in summary, they generally fall into the following business models:

1. With policy subsidies, several distributors partner to invest heavily in building advanced modern warehousing and logistics parks, jointly doing unified warehousing and shared distribution logistics. 2. On the basis of a unified warehousing and distribution platform, add a B2B platform for transactions. 3. Join a B2B platform, allowing local merchants to sell on the platform, and then collect transaction service fees. 4. Not trusting that they lack core technology, spend heavily to develop a platform system with independent intellectual property rights, first use it themselves, and then sell the platform once it's ready. 5. First open a micro-mall, put their own products online for ordering, and once it gains traction, let others gradually place orders on their platform. 6. Small shops are inactive, so use special offers, buy-one-get-one deals, and coupons in the form of subsidies to get small shops into the habit. 7. While doing a B2B platform, also open convenience store franchises.

These are common ideas in business model design for distributors, and many distributors are indeed doing this. If you think this way too, congratulations, you have already fallen into the model trap. The author can responsibly tell you that 90% of the above seven points are wrong. If you think the above models are fine and plan to operate for a while to see, you will soon discover:

After building a unified warehousing and distribution logistics center, you find that distributors' goods cannot enter the warehouse; after entering the warehouse, you find that operating costs cannot be reduced and efficiency cannot be improved; after building a B2B platform, no one comes to sell on the platform; after they come to sell, small shops do not place orders online.

After subsidizing small shops to place orders online, you find that small shops only order cheap goods with price subsidies; without subsidies, they don't order. After finally cultivating habits and reducing subsidies, small shops order more, but you find that the product range is incomplete; small shops demand too many varieties, and the existing SKUs cannot meet their needs.

After meeting small shops' needs, you find that making the platform profitable is a distant prospect.

B2B is a bottomless pit: unlimited investment, profitability is far off, and operations are very difficult. This leaves many bosses confused: Is B2B a false proposition? Or is there a problem with their own model?

The core reason for these problems is that distributors have fallen into logical traps. Here are a few simple trap mindsets:

  • Doing agency while also doing unified warehousing and distribution logistics
  • Forming alliances to do B2B
  • Cutting into transactions while providing services
  • Building a matching platform for FMCG
  • Developing your own platform
  • Activating customers through promotions

The reason for falling into such thinking traps is mostly that distributors do not understand the industry deeply enough; they just think the logic is right and start trying. But before there are successful cases in this industry, it's like a swamp; you never know if the next step is mud or solid ground. If you don't conduct in-depth analysis and research on the industry and lack sufficient theoretical support, the success rate of starting a business in this field is almost zero.

B2B has never been an industry but a supply chain service system. The distribution industry that distributor friends have been engaged in for years is only a small part of this service system. If entrepreneurs do not view B2B from the perspective of the entire chain and the entire industry, they can easily fall into traps.

The original intention of our "B-end E-commerce Study Tour" is to hope that distributors, before doing B2B, go out and see more. First, to find a platform or technology that matches their resources; second, to collide ideas with friends from other cities and industries, enrich experience, and gain a deeper understanding of the industry. Moreover, the author will also organize salons or training sessions in each study tour to share methods and ideas for solving the above problems with everyone. If you want to start a business in the B2B field and still have some confusion, then you must not miss our study tour.

This year's 7th study tour will be held on June 20-22, visiting Suzhou Medlian, Shanghai Hd, and Hangzhou Wangcang. These three companies have a lot of insights and methods in technology, models, and operational experience. They are leaders in their respective fields. During the visit, the author will also unreservedly share New Distribution's observations and insights on the industry over the past year. Friends interested in signing up, please scan the QR code below to inquire. Registration fee is as usual: 200 yuan per person, with transportation and accommodation at your own expense.

Activity Schedule:

Suzhou·Shanghai·Hangzhou 19th: Check in at designated hotel in Suzhou; 20th: Visit Suzhou Medlian; 21st: Visit Shanghai Hd; 22nd: Visit Hangzhou Wangcang; 23rd: Return or free arrangement for sightseeing;

Introduction to the Platforms to Visit:

Medlian Youshang Software, a well-known domestic information system provider, launched the "Medlian" brand in 2015. Medlian, based on Youshang Software products, uses artificial intelligence technology as internal strength and efficient operations as a breakthrough to help distributors create new B2B business models. It has provided software technology services to distributors in more than 50 cities across the country.

Hd Company Shanghai Hd Information Engineering Co., Ltd. (hereinafter referred to as: Hd Company) is a domestic first-class management consulting and software R&D company for commercial circulation, e-commerce, and modern logistics solutions.

Since its establishment more than 20 years ago, it has been committed to creating modern commercial management models for customers. Hd's systematic products and solutions with independent intellectual property rights are highly competitive in the three business formats of chain retail, commercial real estate, and warehousing logistics. It currently supports more than 500 well-known large and medium-sized commercial enterprises and group users in 30 provinces and cities across the country. It is the largest retail software provider in China.

Wangcang Zhejiang Wangcang Technology Co., Ltd. was established in June 2011. It is the earliest and currently the only large-scale independent fourth-party intelligent warehousing and distribution service provider in China. Wangcang has always been committed to innovation, implementation, and daily operations of refined and collaborative solutions for e-commerce enterprise warehousing and distribution. Today, Wangcang has the capability to provide solutions from B2C e-commerce warehousing and distribution to full supply chain integration of B2B+B2C (warehousing and distribution).

Relying on its self-developed adaptive warehousing and distribution comprehensive management system, combined with years of warehouse construction and in-warehouse management experience, as well as self-developed equipment, Wangcang has formed comprehensive competitive advantages. Wangcang's system can seamlessly connect with all sales platforms, enterprise ERP, logistics transportation and express resources, and in-warehouse operating resources (such as equipment, labor, warehousing area application, etc.). Through our services, single-warehouse efficiency can be greatly improved, achieving resource interaction and allocation between warehouses. Through big data, we provide value-added services such as supply chain optimization and supply chain finance for cargo owners. At the same time, through open systems and management advantages, we provide franchise business for warehouse owners.

Organization Form

1. Company visit 2. Actual market case visit 3. On-site explanation 4. One-on-one communication

Participating distributor friends only need to pay a registration fee of 200 yuan Other expenses are at your own expense Long press this QR code or click "Read Original" to register

Long press the QR code to add WeChat for registration

Group Photos from Previous Study Tours:

6th B-end E-commerce Study Tour group photo, from top to bottom: Zhongke Shangruan, Shuhai Supply Chain, Yunmei Shares, Yishang Logistics.

5th B-end E-commerce Study Tour group photo, from top to bottom: Huiwangxing, Beiquan, Tongying Tianxia, Quanshihui, Zhongke Shangruan.

4th B-end E-commerce Study Tour group photo, from top to bottom: Alibaba Retail Link, Qianmi Network.

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