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Factories, traders, wholesale markets and B2B
Three quotes for 2,000 door locks - and why the cheapest unit price loses
Speaker notes Open with the three quotes without explaining them. Ask which one students would choose. Keep the vote for the end of the lesson.
Opening question
Hook 3 min
Cheapest unit price, cheapest order?
Factory: US$3.20, minimum 5,000 units, 45 days. Yiwu stall: US$3.50, 2,000 units pooled, two weeks. Trading company: US$3.40, handles export and consolidation. Which would you choose, and what would you give up?
Learning objectives
O1–O4 2 min
By the end, you can...
State B2B features and contrast them with B2C. Distinguish the four actors by role and revenue. Explain platform fees as acquisition cost. Compare quotes on five columns and recommend with conditions.
Concept 1 · What makes it B2B
O1 4 min
Three features, one longer process
1
Larger quantities
Orders are sized for resale or production.
2
More specifications
Custom labels, materials, packaging, standards.
3
Longer lead times
Production, approval and shipping take weeks.
Speaker notes Ask why a B2B page has an inquiry button instead of a cart. Each feature adds a step that cannot be automated away.
Concept 1 · The real boundary
O1 4 min
B2B is not "a big B2C order"
? What changes when the buyer is a business rather than a consumer?Swipe horizontally to see the full figure
B2C path Consumer buys for own use Platform storefront listing, payment, dispute Cross-border parcel postal or express Buyer's door return via platform listed price one parcel delivery B2B path Business buyer resale or operations Seller / trader quote and contract Production bulk, QC, consolidation Customs & freight forwarder, documents Buyer warehouse repeat supply inquiry deposit balance delivery Decision B2C B2B Buyer and purpose Individual, personal use Business, resale or operations Price Listed, same for all Quoted per order and terms Order One unit or small basket Bulk, repeat supply After-sales Platform mediates returns Contract terms and inspections
Takeaway The buyer's purpose changes the price, the approval chain and who answers the after-sales claim. Order size alone does not define B2B.
Concept diagram, not a transaction record. Both paths can carry the same product.
Concept only Lesson 04 comparison; no market data
Speaker notes Test both directions: a company buying one sample is B2B; a consumer buying 100 items is B2C. Size is a symptom, not the definition.
Evidence · Global landscape
O1 3 min
B2B is larger than the consumer market
US B2B: about US$8.3 trillion, roughly 38% of the US$21.84 trillion global B2B market.
Source: UNCTAD, cited in textbook §2.3.2. Combined B2B+B2C: US >9, Japan >3, China >2, Korea >1 (US$ trillion). This is not the B2C table: China leads B2C, the US leads B2B.
Concept 2 · Four actors
O2 5 min
Four actors, four obstacles removed
Production
Factory
Makes goods; earns on capacity and production margin.
Consolidation
Trader / stall
Fills assortment, pools orders, prepares export.
Matching
B2B platform
Listings, search, messaging; membership and ads.
Demand
Overseas buyer
Buys for resale or production; bears import risk.
Concept 2 · Supply relations
O2 4 min
The chain is a set of tasks, not a fixed sequence
1 Factory (production) 2 Trader / stall (consolidation) 3 B2B platform (matching) 4 Overseas business buyer
Speaker notes Point out that the same batch can pass through all four, and the platform may sit beside the transaction rather than in the middle of the goods flow.
Concept 2 · Two platforms
O2 4 min
1688 is not Alibaba.com
1688 Domestic wholesale buyers in China RMB pricing, domestic logistics Chinese-language interface Alibaba.com Overseas business buyers Export inquiry and terms International marketplace
Speaker notes Both belong to the same group, but they serve different markets. Treating them as interchangeable is a common sourcing error.
Concept 3 · Platform economics
O3 3 min
Membership is an acquisition cost
Textbook account: Alibaba.com fees vary by category, up to about RMB 150,000 per year, plus advertising.
Fixed cost must be spread across orders. A low unit price may hide a high fixed fee. Check current official terms; fees change.
Case · Teaching case
O4 6 min
Three quotes for 2,000 door locks
Case: three quotes for 2,000 door locks (teaching case)
A: factory, US$3.20, MOQ 5,000, 45 days, 50% deposit. B: stall, US$3.50, 2,000 pooled, 2 weeks, buyer arranges freight. C: trader, US$3.40, 2,000, 25 days, export documents and booking. No real quotes; the terms are the lesson.
Speaker notes Ask what ex-works means and who pays freight, insurance and duty in each quote.
What each quote shifts to you
A
Quantity and time risk
Cheapest unit price, but you must buy 5,000 and wait 45 days.
B
Freight and quality risk
Fastest, but you arrange freight and inspect production.
C
Higher unit price
You pay more per unit for documents, consolidation and booking.
Speaker notes The key sentence: risk is shifted, not removed. Ask which risk the buyer is best able to absorb.
Five columns before you choose
Landed cost: goods + freight + insurance + duty + fees. Lead time and reliability. Minimum order and cash needed. Payment terms: deposit and balance. Risk allocation: who inspects, clears and handles claims.
Common misconceptions
O1–O4 3 min
Three claims to retire
B2B means a big order. Cheapest unit price wins. Platform membership is a commission.
Speaker notes Take counter-examples from the case, not from definitions alone.
Classroom activity
O4 12 min
Quote comparison sheet
3 min Copy five columns: landed cost, lead time, MOQ, payment terms, risk. 4 min Fill the columns for quotes A, B and C. 3 min Mark risks that are shifted, not removed. 2 min Write: "Choose X if..., because...".
Materials on this slide
Exercise: five-column quote sheet
Speaker notes Force groups to add freight and duty for A and B. A recommendation without conditions is incomplete.
Five questions
Q1 largest B2B market · Q2 B2B features Q3 stall role · Q4 one seller, two buyers Q5 1688 vs Alibaba.com
What you can now do
Define B2B by buyer and purpose. Separate the four actors by task and revenue. Treat platform fees as acquisition cost. Compare quotes on five columns and state conditions.
Sources and preparation
Textbook §2.3.1–§2.3.4 (SRC-002). Alibaba.com (SRC-082) and 1688 (SRC-081); fees per current official terms. Next: how Chinese goods reach overseas markets.
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Slide 1 of 18
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1
Factories, traders, wholesale markets and B2B
2
Cheapest unit price, cheapest order?
3
By the end, you can...
4
Three features, one longer process
5
B2B is not "a big B2C order"
6
B2B is larger than the consumer market
7
Four actors, four obstacles removed
8
The chain is a set of tasks, not a fixed sequence
9
1688 is not Alibaba.com
10
Membership is an acquisition cost
11
Three quotes for 2,000 door locks
12
What each quote shifts to you
13
Five columns before you choose
14
Three claims to retire
15
Quote comparison sheet
16
Five questions
17
What you can now do
18
Sources and preparation
Lesson 04 · 50 min · 1 / 18
Factories, traders, wholesale markets and B2B
Three quotes for 2,000 door locks - and why the cheapest unit price loses
Open with the three quotes without explaining them. Ask which one students would choose. Keep the vote for the end of the lesson.
Opening question · 2 / 18
Cheapest unit price, cheapest order?
Factory: US$3.20, minimum 5,000 units, 45 days. Yiwu stall: US$3.50, 2,000 units pooled, two weeks. Trading company: US$3.40, handles export and consolidation. Which would you choose, and what would you give up? Take a quick vote and ask one student per option to justify it. Do not correct yet.
Learning objectives · 3 / 18
By the end, you can...
State B2B features and contrast them with B2C. Distinguish the four actors by role and revenue. Explain platform fees as acquisition cost. Compare quotes on five columns and recommend with conditions. O4 is the transfer skill; Q3 and the activity test it.
Concept 1 · What makes it B2B · 4 / 18
Three features, one longer process
Ask why a B2B page has an inquiry button instead of a cart. Each feature adds a step that cannot be automated away.
Concept 1 · The real boundary · 5 / 18
B2B is not "a big B2C order"
? What changes when the buyer is a business rather than a consumer?Swipe horizontally to see the full figure
B2C path Consumer buys for own use Platform storefront listing, payment, dispute Cross-border parcel postal or express Buyer's door return via platform listed price one parcel delivery B2B path Business buyer resale or operations Seller / trader quote and contract Production bulk, QC, consolidation Customs & freight forwarder, documents Buyer warehouse repeat supply inquiry deposit balance delivery Decision B2C B2B Buyer and purpose Individual, personal use Business, resale or operations Price Listed, same for all Quoted per order and terms Order One unit or small basket Bulk, repeat supply After-sales Platform mediates returns Contract terms and inspections
Takeaway The buyer's purpose changes the price, the approval chain and who answers the after-sales claim. Order size alone does not define B2B.
Concept diagram, not a transaction record. Both paths can carry the same product.
Concept only Lesson 04 comparison; no market data Test both directions: a company buying one sample is B2B; a consumer buying 100 items is B2C. Size is a symptom, not the definition.
Evidence · Global landscape · 6 / 18
B2B is larger than the consumer market
Source: UNCTAD, cited in textbook §2.3.2. Combined B2B+B2C: US >9, Japan >3, China >2, Korea >1 (US$ trillion). This is not the B2C table: China leads B2C, the US leads B2B. Warn about scope: the combined total is B2B-heavy and does not contradict Table 2-1.
Concept 2 · Four actors · 7 / 18
Four actors, four obstacles removed
Ask students to name one thing each actor cannot do. That limitation is why the others exist.
Concept 2 · Supply relations · 8 / 18
The chain is a set of tasks, not a fixed sequence
Point out that the same batch can pass through all four, and the platform may sit beside the transaction rather than in the middle of the goods flow.
Concept 2 · Two platforms · 9 / 18
1688 is not Alibaba.com
1688 Domestic wholesale buyers in China RMB pricing, domestic logistics Chinese-language interface Alibaba.com Overseas business buyers Export inquiry and terms International marketplace Both belong to the same group, but they serve different markets. Treating them as interchangeable is a common sourcing error.
Concept 3 · Platform economics · 10 / 18
Membership is an acquisition cost
Fixed cost must be spread across orders. A low unit price may hide a high fixed fee. Check current official terms; fees change. Ask how many orders are needed to recover the fee. This connects platform choice to unit economics.
Case · Teaching case · 11 / 18
Three quotes for 2,000 door locks
A: factory, US$3.20, MOQ 5,000, 45 days, 50% deposit. B: stall, US$3.50, 2,000 pooled, 2 weeks, buyer arranges freight. C: trader, US$3.40, 2,000, 25 days, export documents and booking. No real quotes; the terms are the lesson. Ask what ex-works means and who pays freight, insurance and duty in each quote.
Case analysis · 12 / 18
What each quote shifts to you
The key sentence: risk is shifted, not removed. Ask which risk the buyer is best able to absorb.
Method · 13 / 18
Five columns before you choose
Landed cost: goods + freight + insurance + duty + fees. Lead time and reliability. Minimum order and cash needed. Payment terms: deposit and balance. Risk allocation: who inspects, clears and handles claims. Do not let students say "it depends" without naming which column drives the decision.
Common misconceptions · 14 / 18
Three claims to retire
B2B means a big order. Cheapest unit price wins. Platform membership is a commission. Take counter-examples from the case, not from definitions alone.
Classroom activity · 15 / 18
Quote comparison sheet
Force groups to add freight and duty for A and B. A recommendation without conditions is incomplete.
Self-check · 16 / 18
Five questions
Q1 largest B2B market · Q2 B2B features Q3 stall role · Q4 one seller, two buyers Q5 1688 vs Alibaba.com Q4 is the conceptual test; Q5 catches a common sourcing error.
Summary · 17 / 18
What you can now do
Define B2B by buyer and purpose. Separate the four actors by task and revenue. Treat platform fees as acquisition cost. Compare quotes on five columns and state conditions. Re-run the opening vote and ask what changed in the reasoning.
Sources & next · 18 / 18
Sources and preparation
Textbook §2.3.1–§2.3.4 (SRC-002). Alibaba.com (SRC-082) and 1688 (SRC-081); fees per current official terms. Next: how Chinese goods reach overseas markets. Remind students that the case quotes are fictional and that platform fees change.