---
title: "Distributors Doing B2B: Build Their Own Platform or Join a Franchise?"
description: "This article analyzes the pros and cons of distributors building their own B2B platforms versus joining existing ones, and advises them to accurately assess their own capabilities and market conditions before deciding. It also announces an online salon on the topic."
author: "赵波"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-05-25"
language: "en"
canonical: "https://xinjignxiao.com/en/articles/distributors-doing-b2b-build-their-own-platform-or-join-a-franchise-93253350/"
markdown: "https://xinjignxiao.com/en/articles/distributors-doing-b2b-build-their-own-platform-or-join-a-franchise-93253350.md"
original_source: "https://mp.weixin.qq.com/s/uwgLmVvHAVKP6jTMApy-LQ"
translation: "https://xinjignxiao.com/zh/articles/%E7%BB%8F%E9%94%80%E5%95%86%E5%81%9Ab2b-%E6%98%AF%E8%A6%81%E8%87%AA%E5%BB%BA%E8%BF%98%E6%98%AF%E8%A6%81%E5%8A%A0%E7%9B%9F-93253350.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/distributors-doing-b2b-build-their-own-platform-or-join-a-franchise-93253350/"
usage_policy: "https://xinjignxiao.com/ai-policy.txt"
---

# Distributors Doing B2B: Build Their Own Platform or Join a Franchise?

> This article analyzes the pros and cons of distributors building their own B2B platforms versus joining existing ones, and advises them to accurately assess their own capabilities and market conditions before deciding. It also announces an online salon on the topic.

Tomorrow evening at 8 PM, this public platform will organize an online salon sharing session in a WeChat group titled: **"What Preparatory Work Do Distributors Need to Do Around the Platform When Building Their Own Platform?"** Interested friends can long-press the QR code at the end of the article to register for free and participate in learning. When adding, please reply with the keyword: **Learning**

This year, traditional FMCG distributors have faced unprecedented pressure from the internet. Internet companies like JD.com, Alibaba, and Huimin, backed by capital, have come on strong. These internet companies, with advantages in technology, models, and talent, have very clear goals: using the internet as a big stick, they are rapidly bloodbathing the distributor industry, which suffers from low efficiency and severe resource waste. Through efficient information and logistics systems, they are quickly rewriting the supply and marketing market landscape.

**Whether distributors like it or not, these internet companies have begun to affect our business.**

B2B platforms view distributors' businesses like an old city awaiting renovation. Facing this old city, they have two choices: either demolish and rebuild, touching distributors' existing interests (existing products), or build a new city next to it as a development zone (promoting new products). But these B2B platforms don't have quality products, so clearly they prefer to loot your old city. Therefore, if you don't renovate your own business, internet companies will use bulldozers to renovate it for you.

Many distributors, not wanting to be subverted by the internet, are also trying to get online. But faced with a dazzling array of platforms, everyone suffers from choice syndrome. At the stage from "nothing" to "something," they don't know how to start, what kind of platform to choose, whether to build their own or join a franchise. Moreover, few distributors dare to make bold changes to themselves. This includes fear of unfamiliar industries, uncertainty about the future, and problems like insufficient relevant knowledge and lack of talent.

As mentioned above, for distributors, it's not a question of whether to do it, but how to do B2B. Today, I will analyze for everyone whether distributors should build their own platform or join someone else's platform, and what are the advantages and disadvantages of each. Distributors can then combine their own resources and actual situation to make a decision.

**I. Advantages and Disadvantages of Joining a Platform**

**▎Advantages:**

a. Technical strength
Developing a B2B platform is a huge project, involving many links and complex architecture, far beyond what some B2C malls can compare. Some domestic B2B platforms, after market validation and multiple iterations, have become relatively mature in technology. Distributors don't need to worry about technology at all.

b. Financial strength
Most B2B platforms are backed by capital. Through multiple rounds of capital injection, these companies develop rapidly. But traditional distributors earn price differences, the hard-earned money of porters. The business logic of internet companies is fundamentally different from traditional business. They burn money first, acquire users, and then make money. So in market investment, internet companies have a stronger competitive advantage compared to individual distributors.

c. Mature management models
Some faster-moving platforms, through continuous trial and error and iteration, have basically found their own operating models after obtaining B-round financing. They will use mature management methods and models to quickly replicate in various markets. With the guidance of these platforms, many franchisees can avoid many detours.

**▎Disadvantages:**

a. The platform only has franchise rights, not ownership
For distributors, even if they join a platform, it's similar to acting as an agent for a product. The child is not their own; no matter how big they raise it, they are not the biological father. Distributors have no ownership of the platform, let alone management of funds and the platform.

b. Security of data and funds
Distributors' original business was mostly a small black box, with two or three sets of account books. Only they knew whether they were making money. But once the business is put online, data such as transaction flows will be fully exposed on the platform. The key is that distributors themselves do not have the right to dispose of this transaction data.

In addition, transaction flows, especially the capital flow of online transactions, are not under the control of distributors. Most distributors consider this a potential risk.

c. The possibility of becoming a wedding dress
Many distributors also worry that after helping the platform expand the local market, the platform can shake off the distributors and directly become the local agent for products. Like Didi Chuxing in the past, through huge subsidies, they moved the existing stock of taxi users online. After mastering transactions, they then eliminated taxis and opened express services to obtain profits.

For platforms, they will try every means to move existing stock online. This is key to the platform's success. Without controlling orders, what meaning does the platform have? But if only doing existing stock transactions, what money can the platform make? So existing stock will definitely be eliminated sooner or later. It just depends on the method. For distributors, the biggest fear is moving their existing stock online and finally making a wedding dress for others.

**II. Advantages and Disadvantages of Building Your Own Platform**

**▎Advantages:**

a. Ownership of the platform
Platform ownership is in your own hands, with full autonomy over data, funds, and all model designs. No need to worry about being cut off from behind. Data security and funds are also fully guaranteed.

b. Can design models suitable for the local market
For franchised platforms, because market environments vary, their inherent mature and highly replicable models may not match the local market. But for self-built platforms, distributors are very familiar with their own markets. Building their own platform allows them to freely design according to the actual market situation to ensure the platform matches the local market.

**▎Disadvantages:**

a. Technical investment
Platform development is a problem for distributors. Many distributors don't develop it themselves but find software companies to do it. SAAS-type general versions are relatively cheap, but they don't match their own market well. If personalized customization is needed, the expensive development cost is not something all distributors can afford.

b. Capital investment
The success of a market requires a lot of capital to educate and mature it. Hundreds of thousands or even millions may be invested without seeing any market feedback. Before seeing hope of success, high-risk investment is not something all distributors have the courage and boldness to stake everything on.

c. Professional degree
Having only capital and technology is not enough. For supply chain organization, market promotion, and market operations, without platform support, relying on your own continuous trial and error and learning, the cost is also huge and unimaginable.

**III. Distributors Should Accurately Assess Their Own Strength and the Degree of Matching with the Platform**

How to organize local resources is a problem that distributors have to consider. Many distributors, when considering doing a platform, have the idea of forming a distributor alliance to jointly invest, build their own, or join a franchise.

But from my personal point of view, I don't recommend this. Alliance investment will encounter too many problems in the future, because a distributor alliance itself is a loose organization. Once the platform goes online, when a large number of temporary problems and market conflicts arise, autocracy may be more efficient than democracy. But when the alliance handles and communicates these contradictions, the more parties involved, the greater the difficulty.

Some distributors first reduce logistics costs through unified warehousing and distribution. I personally favor this model. But should they use existing warehouses or build new ones? How to achieve unified warehousing, sorting, and bus-style distribution? Will alliance members worry about being cut off from behind? These are all issues that need to be handled and coordinated before doing it, such as responsibilities, rights, and interests.

**Distributors doing platforms have many ways to enter the market. They can cut existing stock or do incremental volume. They can start from logistics or use small shops to force the supply chain. Regardless of the form, whether joining or building their own, they must first do it. If they can partner, partner; if not, do it themselves. Don't be afraid of trial and error. The biggest fear is only looking and not moving, finally losing the first-mover advantage and being harvested by others.**

**On the 26th at 8 PM, this public platform will organize an online salon sharing session titled: "What Preparatory Work Do Distributors Need to Do Around the Platform After Building Their Own Platform?" Interested friends can long-press the QR code below to register for free and participate in learning. When adding, please reply with the keyword: Learning**

- END-

The best FMCG distributor learning platform in China
Focusing on providing professional, practical, and applicable tutorials for enterprises and distributors
Committed to helping Chinese FMCG distributors grow rapidly
**The most professional and practical knowledge base in the FMCG industry**

Reply with the red number below to get corresponding content
Reply with number 1 to view the complete knowledge base
| **001** Excellent article selection | **002** Distributor market operation | **003** Terminal visit management | **004** Sales supervisor skills | **005** Sales improvement techniques | **006** Channel expansion | **007** Managing distributors | **008** Distributor development | **009** Distributor internal operation management | **010** Team management | **011** Efficient distribution techniques | **012** Sales manager's eighteen skills | **013** KA operation methods and strategies | **014** First lesson for new salespeople | **015** Internet, brands | **016** Distributor B2B transformation |
[Long press QR code to follow]


---

## Copyright and AI use

This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL.

Contact: zhaobo258@gmail.com · +86 158 5481 7671