Global E-commerce Classroom

Course · L06

B2B, B2C, platforms, self-operation and brand building

50 min · Complete

L06 Lessons

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Learning objectives

Textbook
Chapter 2, §2.2.1, §2.2.4, §2.3.4, §2.4; Figure 2-3; Table 2-1; platform sites SRC-085–SRC-088
Prerequisites
Lessons 1–5: transaction parties, supply actors and routes.
Role in the course
This lesson separates four dimensions that are often mixed: who transacts, who owns the channel, what the brand owns, and which device or scene is used.

Mapped textbook sections

2.2 Business to Consumer (B2C) Model · Class focus 2.2.1 Definition · Class focus 2.2.4 Forms of Operation in B2C · Class focus 2.3.4 B2C vs. B2B · Class focus 2.4 Consumer to Consumer (C2C) Model · Brief explanation

Opening context

Focus and difficulties

Focus

  • The five B2C operating forms are ways of operating, not five kinds of product.
  • Ownership of goods is the clearest test of platform versus self-operated; hybrid models do both.
  • One transaction carries several labels at once; mixing dimensions produces pseudo-questions.

Likely difficulties

  • Students treat the five operating forms as a list to memorise and cannot place a real store into one.
  • Platform and self-operated are confused because both show products and a buy button; the difference is who owns the goods and the after-sales obligation.
  • Brand, channel and software are conflated: Shopify is assumed to be a brand because stores built on it look branded.

Core concepts

What it is · Why it matters · How it explains the case · Difference from nearby concepts

B2C and five operating forms EN

What it is
B2C sells to end consumers. §2.2.4 lists five operating forms: direct sellers, online intermediaries (no goods ownership, matching for commission), advertising-based (free content, ad revenue), community-based (shared-interest communities) and live-broadcasting.
Why it matters
The forms differ in revenue source and capability: margin, commission, advertising, community traffic or live conversion.
How it explains the case
Place a real store into one form - or a combination - before analysing its economics.
Difference from nearby concepts
The five forms describe how a firm operates, not who the buyer is; a B2C seller can combine several forms.
How it works
A store may sell directly, host third-party sellers, run content for ads, build a community and stream live - all on one platform.
Conditions and limits
The forms overlap in practice, and a single page may combine three of them; classification is analytical, not a legal category.

Platform, self-operated and hybrid EN

What it is
A platform provides marketplace space and rules (Taobao); a self-operated retailer buys and resells goods (SheIn); a hybrid does both (JD, Amazon).
Why it matters
Ownership determines who carries inventory, sets price, earns trading margin and answers after-sales.
How it explains the case
Ask who owns the goods before delivery, who sets the price and who handles a return.
Difference from nearby concepts
A platform is not a seller; a self-operated retailer is. A hybrid can be both on different items.
How it works
Platform earns commission and ads; self-operated earns margin but bears inventory; hybrid mixes both revenue streams.
Conditions and limits
Hybrid models blur responsibility; customers may not know which entity sold the item until a dispute arises.

Brand building versus site-building services EN

What it is
Brand building means selling under your own brand and owning the customer relationship (DTC); Shopify sells software, templates and infrastructure for merchants to run their own stores.
Why it matters
A brand owns positioning, pricing and customer data; a software provider earns subscription and service fees and does not own the goods or the brand.
How it explains the case
When a store uses Shopify, ask who owns the brand and the customer list; the answer is the merchant, not Shopify.
Difference from nearby concepts
Shopify is a tool, not a brand and not a marketplace; SheIn is a brand and a retailer. Using the same software does not make two stores the same business.
How it works
Shopify provides storefront, payment and app integrations; the merchant acquires traffic and fulfils orders.
Conditions and limits
A branded-looking site can still be a reseller; brand building requires product, positioning and repeat purchase, not just a domain.

Dimensions and multi-label transactions EN

What it is
Parties (B2B/B2C/C2C), ownership (platform/self-operated), category breadth (comprehensive/vertical), device (mobile), scene (social/local/live) and flow (export/import) are separate dimensions.
Why it matters
Each dimension answers a different question; mixing them creates pseudo-questions such as "is mobile ecommerce bigger than ecommerce?".
How it explains the case
Label every case on all relevant dimensions, then compare cases only on the dimension in question.
Difference from nearby concepts
B2C is not the opposite of mobile or social; a purchase can be all three. C2C is a party dimension, not a device dimension.
How it works
Ask six questions in order: who buys, who sells, who owns the channel, how broad, which device, which scene.
Conditions and limits
Not every dimension matters for every decision; choose the dimensions that affect the question, and say which you are using.

Explanation

Begin by placing B2C. B2C sells goods or services to end consumers, also called retail ecommerce. The textbook's Figure 2-3 puts B2C at about 18% of global retail in 2022, while Table 2-1 shows China's B2C online retail at about US$1.414 trillion in 2020, ranking first. Keep the scopes apart: 18% is a retail share, China-first is a B2C comparison, and neither is the B2B comparison where the US leads.

The textbook then lists five B2C operating forms in §2.2.4. Direct sellers buy or make goods and sell them to consumers. Online intermediaries do not own the goods; they match buyers and sellers and earn commission. Advertising-based B2C uses free content to gather traffic and sells advertising. Community-based B2C builds on shared-interest communities. Live-broadcasting B2C, born in China, combines demonstration and selling in real time. The list describes how a firm operates, not what it sells.

These forms overlap in practice. A short-video platform can run a community, sell advertising, host third-party shops and stream live commerce on the same day. A brand's flagship store may be a direct seller while the platform around it earns ads and commission. The analytical task is not to force a store into one box but to identify which forms are present and which one drives revenue.

Ownership is the next distinction, and it is the clearest test. A platform provides marketplace space and rules; it does not own the goods (Taobao). A self-operated retailer buys and resells; it owns inventory, sets price and carries after-sales (SheIn). A hybrid does both: JD sells self-operated items and hosts third-party sellers, and Amazon combines its own retail with a marketplace. Ownership determines who carries inventory risk, who earns trading margin and who answers a return.

Brand and tool are often confused. Brand building means selling under your own brand and owning the customer relationship; this is the core of DTC. Shopify is a site-building service: it sells software, templates and infrastructure, and earns subscription and service fees. It does not own the goods, the brand or the customer list. SheIn, by contrast, designs, sources and sells under its own brand. A store built on Shopify can be a real brand, but the software is not the brand.

Now the dimension problem. B2B/B2C/C2C classify the parties. Platform/self-operated classify ownership. Comprehensive/vertical classify category breadth. Mobile classifies the device; social, local and live classify the scene; export/import classify the flow. These are different questions, and one transaction can carry several answers at once. Buying a T-shirt from a self-operated brand's livestream on a phone is B2C, mobile, social, live and self-operated - five labels, no contradiction.

Mixing dimensions produces pseudo-questions. "Is mobile ecommerce bigger than ecommerce?" compares a device with a whole; the answer is neither yes nor no, because one is a subset of the other. "Is social commerce replacing B2C?" compares a scene with a party relationship. Once the dimensions are separated, the questions become answerable: how much B2C retail happens on mobile, or how much social-scene commerce is B2C.

C2C deserves a short note. In C2C, consumers sell to consumers: eBay auctions, Poshmark (which charges about 20% commission per the textbook) and Mercari. The textbook also notes that eBay, born as C2C, later required individual sellers to provide business information, moving toward B2C. Classification is descriptive; firms evolve, and a label that fitted yesterday may not fit today.

A practical routine follows. For any store, ask: who buys, who sells, who owns the channel, how broad is the assortment, which device and scene are used, and which direction do goods flow? Then ask who owns the goods, the brand, the traffic and the after-sales obligation. These answers explain the revenue model better than the store's design or its slogan.

Examples

Example 1: JD and Taobao are not the same model

Taobao mainly provides marketplace space; JD sells many items itself and also hosts third-party sellers, with its own logistics. The difference is who owns the goods and who answers after-sales.

Concept applied: Platform, self-operated and hybrid.

Example 2: Shopify and SheIn

Shopify gives merchants software to run a store; it does not own the goods or the brand. SheIn designs, sources and sells under its own brand. Similar-looking storefronts can sit on opposite sides of the value chain.

Concept applied: Brand versus site-building service.

Case

Teaching scenario (fictional, for analysis)

Case: five ways to sell one earbud (teaching case)

Background and period
Fictional comparison for practising role identification; it does not represent a real transaction. One factory makes one earbud model and considers five sales arrangements.
The problem
The product is identical, but the arrangements differ in who owns the goods, who owns the brand, where traffic comes from, who answers after-sales and how money is earned. A seller must know which role it is taking before negotiating price or responsibility.
What was done, with evidence
Arrangement 1: a third-party shop on Amazon (seller owns goods, platform owns traffic and rules). 2: JD self-operated procurement (JD owns goods and after-sales; factory is a supplier). 3: SheIn under its own brand (SheIn owns brand, design and customer relationship; factory may be a supplier). 4: a Shopify standalone site (merchant owns goods and brand; Shopify provides software; merchant buys traffic). 5: a TikTok livestream (creator or brand sells in a social/live scene; platform owns distribution and rules).
Observable results
No real cost or sales data are used. Observable differences are roles and obligations. The factory earns a manufacturing margin in arrangements 2 and 3, and a trading margin only if it becomes the seller in 1, 4 or 5. Traffic responsibility shifts: marketplace, platform distribution or the merchant's own advertising. After-sales responsibility follows goods ownership.
Concepts applied
Five B2C forms; platform/self-operated/hybrid; brand versus site-building service; multiple dimensions.

Discussion questions

  1. For each arrangement, state who owns the goods, the brand, the traffic and the after-sales obligation.
  2. Label each arrangement on at least four dimensions and explain each label.
  3. In which arrangement does the factory earn the thinnest margin, and what risk does it avoid?
  4. Which arrangement best builds a brand asset, and what capability is required?

Teacher analysis notes

Draw a four-column table (goods, brand, traffic, after-sales) and fill it with the class. The key insight is that the factory's margin depends on which role it takes, not on the product. Expect students to call arrangement 4 "SheIn's model"; correct it: Shopify is software, SheIn is a brand.

Source: Teaching case written for this course; operating forms from SRC-002 §2.2.4; platform descriptions from SRC-085–SRC-088. No real sales data.

Chart / diagram

Total ecommerce of major economies (B2B+B2C, approximate)

美国 US 9 (60%)
日本 JP 3 (20%)
中国 CN 2 (13%)
韩国 KR 1 (7%)

2020(教材转引 UNCTAD 2021) · 万亿美元(括号内为占四国合计约 15 万亿美元的比例) · UNCTAD 2021,转引自教材图 2-7(SRC-016);数据为教材转引约数

The US total is driven by B2B (about US$8.3T); China leads B2C. Brackets show shares of the four-economy total.

How to read this chart

Key English terms

B2C A business sells directly to individual end consumers.
Direct seller B2C sells to end consumers.
Online intermediary An actor that does not own the goods, matches buyers and sellers, and earns a commission.
Self-operated A platform provides marketplace space and rules (Taobao); a self-operated retailer buys and resells goods (SheIn); a hybrid does both (JD, Amazon).
Hybrid model One platform operating both self-operated and third-party business.
DTC A brand sells directly to consumers, bypassing traditional retail intermediaries.
Site-building service Brand building means selling under your own brand and owning the customer relationship (DTC); Shopify sells software, templates and infrastructure for merchants to run their own stores.
C2C An online platform enables individuals to sell to other individuals.
Dimension Textbook §2.1 classifies ecommerce by goods flow (export/import), parties (B2B/B2C/C2C), ownership (platform/self-operated) and category breadth (comprehensive/vertical).
After-sales obligation Then ask who owns the goods, the brand, the traffic and the after-sales obligation.

Common misunderstandings

Common claim

A platform is the seller.

What needs clarifying

A platform provides space and rules; the seller owns the goods and the after-sales obligation.

Common claim

Self-operated means building your own warehouse.

What needs clarifying

Self-operation is about owning goods and sales responsibility; warehousing can be outsourced.

Common claim

Shopify is a brand.

What needs clarifying

Shopify sells software and infrastructure; the merchant owns the brand and customer relationship.

Common claim

Mobile or social commerce is a fourth transaction type.

What needs clarifying

They are device and scene dimensions that can sit on B2B, B2C or C2C.

Common claim

If a store looks branded, it is DTC.

What needs clarifying

Brand appearance is not ownership; check who owns the goods, the data and the pricing.

Common claim

C2C and B2C are fixed labels.

What needs clarifying

Firms evolve; eBay began as C2C and later required business information from sellers.

Class discussion

  1. Which role would a factory with no marketing team take first, and why?
  2. Why can two stores look identical yet have opposite economics?
  3. Is a livestream on a marketplace private traffic? Explain with the dimension labels.
  4. Choose a store you know and label it on four dimensions. Which label explains its prices?

Classroom activity

Role table in 12 minutes

Identify who owns goods, brand, traffic and after-sales in five sales arrangements.

  1. 4 min Draw four columns: goods, brand, traffic, after-sales.
  2. 4 min Fill the table for the five arrangements in the case.
  3. 2 min Label each arrangement on at least four dimensions.
  4. 2 min Choose the arrangement that best builds a brand and name one required capability.

What students produce: A completed role table and dimension labels for five arrangements.

Teacher reference notes

Expect confusion between arrangement 3 and 4. Ask who owns the brand in each. Also check whether students label the livestream as "private traffic"; correct it using the scene dimension.

Courseware files

Self-check

This is a formative self-check. Answers are graded on the server and saved with your result. All questions are required unless marked otherwise.

This is a practice attempt. Sign in and join your class to submit coursework.
1. Per §2.2.4, which is NOT one of the five B2C operating forms? · Required
2. JD runs both self-operated items and third-party shops. This form is... · Required
3. "Buying a T-shirt from a self-operated brand's TikTok livestream on a phone" can be labelled with at least... · Required
4. What is the essential difference between Shopify and SheIn? · Required
5. eBay began as C2C and later required individual sellers to provide business information. What does this show? · Required

Private notes

Only you can see your notes; teachers and other students cannot.

My Learning

Summary

Materials & Extensions

Before class, in class, case discussion and after class. Only published materials are shown.

In class

link · Optional

JD.com — About Us

Official description of JD as self-operated retail plus third-party marketplace and logistics; use as a hybrid example.

en · JD.com (SRC-086) · Link only; company self-description

Open

Case discussion

case · Required

Exercise: role table for five arrangements

Fill goods, brand, traffic and after-sales ownership for the five earbud arrangements, then label each on four dimensions.

en · Course teaching case (fictional) · Original teaching material

After class

link · Optional

Shopify — About

Official page describing Shopify as commerce infrastructure and software for merchants; contrast with a brand such as SHEIN.

en · Shopify (SRC-088) · Link only; company self-description

Open

Further reading

Sources

跨境电商概论chapter 2.docx · Chinese original source

Provided by the teacher · SRC-002

全球 B2B 电商规模对比(FIG-2-7 数据) · Chinese original source

UNCTAD · 2021 · SRC-016

JD.com — About Us

京东集团 · SRC-086

Shopify — About

Shopify · SRC-088

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