B2B Platform Development in Electronics Manufacturing Supply Chain of China

Abstract

With the effect of the improvement of Internet technology, the e-commerce worldwide is growing rapidly. According to the report of Frost & Sullivan, B2B e-commerce by 2020 will reach $12 trillion in sales worldwide, up from $5.5 trillion in 2012, for a compound annual growth rate of 8.11%. Amount all, with the support of China government policy, the B2B growth momentum cannot be neglect. In 2015, China ecommerce total sales volume has gone up to $2.7 trillion dollars, 36.5% growths rate in comparing with the corresponding period. Amount this, B2B e-commerce sales volume is $2.1 trillion dollars, 39% growths rate in comparing with the corresponding period, and grows three times in five years in comparing with $0.89 trillion dollars in year 2011. The platform that links the two-sided market and the network effects caused by the growth of the number of people who use this platform, are the major driving forces of the improvement to this platform. However, the service innovation in B2B e-commerce platform received little attention in the existing literature. We study how a traditional wholesale company is transformed into a one-stop various service provider via B2B e-commerce platform- a case of electronics manufacturing supplier.