With the rise of cross-border e-commerce (B2C), will traditional B2B foreign trade be replaced? A comparison of their advantages and a selection guide.

In recent years, the cross-border e-commerce B2C sector has been exceptionally vibrant—from Amazon sellers experiencing order surges to the rise of independent website brands, and then to live-streaming e-commerce going global, it seems everyone is saying that "doing business with consumers is the future."

At this point, many people engaged in traditional B2B foreign trade began to panic: "Is the B2B model that we have adhered to for so many years going to be replaced by cross-border e-commerce?"

There's no need to be anxious. A closer look reveals that B2B and B2C are more like "parallel lines" in the foreign trade industry. They may occasionally intersect and complement each other, but one will never replace the other. They each have their own advantages and their own target audiences; the key is to find the right path for yourself.

I. B2B: The "Stable Foundation" for Physical Enterprises

Let's start with traditional B2B foreign trade. Its core target group is wholesale clients, such as overseas distributors, large retailers, and brand buyers. The characteristic of this model can be summarized by the word "stability":

Because of its perceived stability, most physical enterprises (especially those with their own factories) focus on B2B. Even though the profit margin per item in B2B is lower than in C-end (consumer-facing) transactions, it saves manpower and energy—they don't need to spend a lot of time on customer service, logistics monitoring, and handling scattered after-sales issues, allowing the team to concentrate on production and supply chain optimization. For physical enterprises, B2B is not a "quick money" option, but rather the foundation for "maintaining their core business." According to data from the General Administration of Customs, my country's total import and export value in 2023 reached 42.07 trillion yuan, with the B2B model accounting for over 80%, demonstrating its core position in international trade.

II. B2C: A "Profit Breakthrough" for Trading Companies and SOHOs

Looking at cross-border e-commerce B2C, it targets retailers and end consumers (such as small overseas shops and individual buyers). Unlike the "stability" of B2B, the core advantages of B2C are "higher profits and greater flexibility":

However, B2C also has its barriers: the dispersed customer base means spending more money on promotion (such as advertising and content creation). According to statistics, the marketing expenses of mature B2C sellers usually account for 15%-25% of their total budget; after-sales issues are also varied (from logistics delays to misunderstandings of product functions), and the number of customers served per customer service team member is only 1/5 of that in the B2B model.

Therefore, B2C is more suitable for trading companies and SOHO sellers—they lack the price advantage of factories, but excel at integrating resources and providing services. They can gain a foothold in the C-end market by helping customers solve after-sales problems and providing personalized experiences. In recent years, a number of B2C giants with annual sales exceeding 100 million yuan have emerged in China, many of which were transformed from small trading companies.

III. Dual-track approach: A "risk-mitigation option" under higher requirements

Of course, many companies choose to "walk on two legs"—doing both B2B and B2C. For example, integrated manufacturing and trading companies (those with both factories and foreign trade operations) and large-scale trading companies often adopt this model. According to a third-party survey, in 2023, the proportion of foreign trade companies using the B2B+B2C dual model reached 38%, an increase of 15 percentage points compared to 2020.

The biggest advantage of these "dual-track" companies is their strong resilience to risks. For example, during the off-season for B2B orders, sales of in-stock goods on the C2C side can make up for it; and when C2C encounters changes in platform policies, stable cooperation on the B2B side can provide a safety net. A typical example is a home furnishing company that, during the wave of Amazon account suspensions in 2022, relied on its B2B business to achieve an overall performance decline of only 5%, far lower than the average decline of 25% for pure B2C companies.

IV. Key Reminder: Businesses primarily focused on B2B should avoid trying to expand too much into the C-end market.

Finally, a word of advice for B2B companies: If your core business is B2B and you want to expand into the consumer (C-end) market, it's advisable to keep C-end business below 30%. Why?

Because the manpower requirements for B2B and C-end are completely different—C-end requires a large number of operations, customer service, and logistics personnel, and if too much is invested, it can easily distract the focus on B-end. According to the experience of successful companies, it is advisable to initially set up a small team of 5-8 people to test the C-end, and then gradually expand after the model is proven successful. This process usually requires a 6-12 month adjustment period.

Ultimately, the rise of cross-border e-commerce doesn't "replace" traditional B2B, but rather provides the foreign trade industry with another option. B2B has the advantage of "stability," suitable for companies focused on long-term cooperation and supply chain stability; B2C is characterized by "high profits," suitable for flexible, service-oriented teams; and operating both online and offline is suitable for companies with strong financial resources to withstand risks. There's no single better model, only which model is best suited to your needs.