---
title: "No Burning Money, No Price Chaos, No Subsidies, No Hijacking: B2B E-commerce That Fails the 'Four No's' Has the Wrong Logic"
description: "At the 2016 Chengdu Spring Sugar Fair, B2B e-commerce was extremely hot, and forums that didn't discuss B2B felt embarrassed. However, to my surprise, most B2B e-commerce logic was wrong. Clearly, many were influenced by C2C e-commerce or O2O, transplanting C-end thinking onto the B-end, which is a terrible thing. One is the logic of 'Internet +', the other is '+ Internet'. Many people can't tell the difference, or even think it's unnecessary, or consider it a word game, which is scary. Even Professor Xu Xiaonian, who has been critical of the Internet, recently emphasized that the new trend is not 'Internet +' but '+ Internet'."
author: "刘春雄"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-03-31"
language: "en"
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markdown: "https://xinjignxiao.com/en/articles/no-burning-money-no-price-chaos-no-subsidies-no-hijacking-b2b-e-commerce-d7670dee.md"
original_source: "https://mp.weixin.qq.com/s/yPVDTEETKDvURje0-tyoxA"
translation: "https://xinjignxiao.com/zh/articles/%E4%B8%8D%E7%83%A7%E9%92%B1-%E4%B8%8D%E4%B9%B1%E4%BB%B7-%E4%B8%8D%E8%A1%A5%E8%B4%B4-%E4%B8%8D%E6%89%93%E5%8A%AB-%E5%81%9A%E4%B8%8D%E5%88%B0-%E5%9B%9B%E4%B8%8D-%E7%9A%84b%E7%AB%AF%E7%94%B5%E5%95%86%E4%B8%80%E5%AE%9A%E9%80%BB%E8%BE%91%E9%94%99%E4%BA%86-d7670dee.md"
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---

# No Burning Money, No Price Chaos, No Subsidies, No Hijacking: B2B E-commerce That Fails the 'Four No's' Has the Wrong Logic

> At the 2016 Chengdu Spring Sugar Fair, B2B e-commerce was extremely hot, and forums that didn't discuss B2B felt embarrassed. However, to my surprise, most B2B e-commerce logic was wrong. Clearly, many were influenced by C2C e-commerce or O2O, transplanting C-end thinking onto the B-end, which is a terrible thing. One is the logic of 'Internet +', the other is '+ Internet'. Many people can't tell the difference, or even think it's unnecessary, or consider it a word game, which is scary. Even Professor Xu Xiaonian, who has been critical of the Internet, recently emphasized that the new trend is not 'Internet +' but '+ Internet'.

> At the 2016 Chengdu Spring Sugar Fair, B2B e-commerce was extremely hot, and forums that didn't discuss B2B felt embarrassed. However, to my surprise, most B2B e-commerce logic was wrong. Clearly, many were influenced by C2C e-commerce or O2O, transplanting C-end thinking onto the B-end, which is a terrible thing.
>
> One is the logic of 'Internet +', the other is '+ Internet'. Many people can't tell the difference, or even think it's unnecessary, or consider it a word game, which is scary. Even Professor Xu Xiaonian, who has been critical of the Internet, recently emphasized that the new trend is not 'Internet +' but '+ Internet'.
>
>
>
>
> Although B2B e-commerce is also e-commerce, it represents a new e-commerce logic. Such logic requires people who understand both traditional business and the Internet, truly cross-disciplinary, to comprehend. Unfortunately, although everyone is talking about B2B, they are talking about different B2Bs.
>
> Apart from the centralized B2B of JD and Alibaba, other B2B should be distributed. I have explained B2B logic on many occasions, but very few truly understand distributed B2B. Even now, many people don't know what distributed means.
>
> If the B2B logic is wrong, the technical route must be wrong, and changing the technical route is equivalent to starting over. We see that many pioneers of B2B e-commerce are on the road to becoming martyrs.
>
> Perhaps it's hard to understand B2B from the root. I'll give a superficial way to judge B2B: in practice, B2B must truly achieve the 'Four No's': no burning money, no price chaos, no subsidies, no hijacking. If it can't achieve the 'Four No's', it means the logic is problematic.
> **No Burning Money**
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>
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> C-end is retail, burning money is still burning small money; O2O is also for C-end, also burning small money. B-end is wholesale; if you want to burn money, no one can afford it. So, B2B that burns money must be problematic.
>
> B-end faces retail stores, all shrewd businesspeople; trying to burn out loyalty is also very difficult. So, if B2B wants to burn money, it's a bottomless pit.
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> Centralized B2B will burn some money, but Alibaba 1688 and JD New Channel already have resources and strong ability to absorb resources. For distributed B2B, even burning money cannot burn into an oligopoly. So, burning money has no result.
>
> Since we don't burn money, where does traffic come from? Where do the costs for ground promotion come from? If you're still asking these questions, you haven't understood distributed B2B at all, or you're influenced by C-end and O2O. Many people I've met ask this question at first, which also shows that B2B logic needs universal 'legal education'.
>
> Where does traffic come from? Move offline directly online, that is, traffic transfer. How to transfer traffic? Those who have done traditional marketing and know a bit about the Internet will learn it easily. Pure Internet people will find it hard to understand.
>
> Where do ground promotion costs come from? If you're still thinking about building your own ground team, you haven't understood that B2B is about integration and optimization, not disruption and replacement.
>
> Of course, not burning money doesn't mean not spending money; how can you do things without spending? Initial investment and activities all cost money. However, those are small amounts.
> **No Price Chaos**
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>
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> As long as there is price chaos, it means distributors are not cooperating, and it's messing with distributors' prices. In B2B e-commerce, distributors should be the main body; how can you be an enemy of distributors?
>
> B2B price chaos indicates that it's not doing a platform but doing vertical. If B2B becomes vertical, the logic must also be wrong. Now many B2B logic designs and technical routes are vertical. Once you enter the vertical door, it's a dead end. If you don't believe it, try it for half a year.
>
> At least 2/3 of current B2B implies vertical logic, which is wrong at the root, unless you start over.
>
> Why does B2B cause price chaos? Largely to force distributors to 'cooperate' by disrupting prices. From reality, distributors are quite 'happy' about it, and even cooperate with price chaos when monthly sales are difficult.
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> Distributors understand that short-term price chaos in B2B is fine, and recovery is easy. Unlike C-end price chaos, which disrupts the entire price system.
> **No Subsidies**
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> O2O uses subsidies; who do they subsidize? For example, Didi subsidizes drivers and passengers to build habits.
>
> Who does B2B subsidize? Either retail stores or resident merchants. B2B shareholders should be resident merchants; there's no reason to subsidize themselves. B2B customers (retail stores), if truly subsidized, would be a bottomless pit. Fortunately, distributors do wholesale, and there are many manufacturer and merchant policies; just transfer policies, no need to frequently implement e-commerce policies.
> **No Hijacking**
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> C-end hijacks B-end (distributors) and R-end (retail, or b-end). B2B also has hijackers; centralized B2B is hijacking, such as JD New Channel and Alibaba 1688.
>
> What is hijacking? It's intercepting traffic, reducing circulation links, under the banner of flattening. To some extent, because the inland channel is too long, it indeed gives the Mas an opportunity to hijack.
>
> JD does B2B because they found that retail stores (R-end) are hard to replace on a large scale, especially in FMCG retail. Since it's hard to replace, they should ally.
>
> Distributed B2B is originally done by distributors themselves; there's no need to hijack themselves. If they are truly hijacking, it means B2B e-commerce stands on the opposite side of B-end, which is a logic error.
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