THE B2B E-COMMERCE SECTOR IN CHINA
B2B e-commerce in China is going through a period of extreme growth, a trend that began during the pandemic and has continued ever since. According to 2020 data, China’s e-commerce market is worth around 39.2 trillion RMB (about 5.9 trillion dollars), roughly 38.6% of the country’s GDP. What may be surprising about this figure is that most of the revenue comes not so much from consumer goods as from the B2B segment. In fact, according to the “2020 China Industrial eCommerce Market Data Report” published in May 2021, the value of China’s B2B e-commerce market in 2020 reached 27.5 trillion CNY (4.1 trillion dollars), meaning that 7 out of every 10 yuan in China’s digital economy are generated by B2B sales.
Judging by these numbers, there is no doubt that China’s B2B e-commerce sector is a thriving market, and the range of B2B e-commerce platforms in China is very wide. Below are the most popular and widely used, by both local and international buyers.
Alibaba
Almost 20 years after its launch, Alibaba’s growth has not slowed for a moment: it is rapidly growing and expanding its business all over the world. It was founded by Jack Ma. Alibaba is the leading e-commerce company in China and provides its services internationally. It has 3 main websites serving millions of users worldwide: Taobao, Tmall and Alibaba.com. When it comes to online shopping, Alibaba is the best-known platform. It is fair to say that it is a one-stop solution for many, since they get all their basic needs in one place. It is an electronic marketplace combined with a search engine.
AliExpress
AliExpress ranks second among the top 10 B2B marketplaces. It is another Alibaba business and was launched in 2010. It is famous because buyers find excellent-quality products at very affordable prices. Most products available on AliExpress are stored in warehouses in China, and all products come directly from Chinese manufacturers, which reduces shipping costs. This is why products are available at much cheaper rates than on other B2B marketplaces.
eWorld Trade
Besides having a huge B2B marketplace, eWorld Trade has also carved out a large space in the digital sector. It is constantly growing its catalogue of manufacturers, retailers and companies and building good business relationships with them. When it comes to B2B trading, eWorld Trade provides the most transparent means of buying and selling. It fully implements and follows its policies, offering clear buying and selling with no hidden fees.
Which segments of the B2B e-commerce market are the most promising?
As mentioned, Chinese B2B e-commerce is a market growing steadily at around 10% a year, outpacing the already rapid rate of GDP growth. Within the B2B market, however, some segments outperform others. This is the case with MRO, which stands for Maintenance, Repair, Operations and covers goods bought in addition to the main product: supplies, spare parts, service tools and so on. Buying these online makes perfect sense: the choice is usually already determined by the equipment the company uses, supplies are needed regularly and sometimes urgently, and buying and using MRO becomes part of normal business operations. Low-voltage electrical equipment, cables and other electrical items are another product group set for huge growth in online sales. The top list of best-selling products in B2B e-commerce also includes car and machinery spare parts and, finally, chemical industry products. Both segments are growing far faster than the market average.
