Are you ready for e-commerce on recycled paper?

(Recovered paper trading—ready for the web?)
As the pulp and paper industry in the world continues to increase the utilization of recycled paper (currently about 45%), what we previously called “waste paper” has now become one of the main sources of fiber, and Europe Due to the scarcity of forest resources, Asia has long been a major consumer of medium fiber.

Although the transaction of recycled paper is one of the important factors affecting the cost of the pulp and paper industry, people have not paid due attention to it. The emergence and development of the Internet has created a vast world for the globalization and development of communications and commerce, and the trade of recycled paper will also be towards electronic development, that is, trade of recycled paper on the Internet.

The traditional trade mode has the following characteristics:
1. Although trade is completed on a local basis, it is a global business transaction.
2. Affected by price fluctuations is relatively large.
3. Transaction costs (measured in tons) are very high.
4. It is not possible to grasp the real-time changes in market prices and make corresponding strategic adjustments.

In view of the above situation, it is necessary to develop e-commerce for recycled paper.

Moore & Associates has conducted a comprehensive survey of the price of old corrugated containers (OCC) in North America over the past five years. Based on this survey, we have concluded the following conclusions:
1. The price fluctuation of OCC is quite large. For example, in the past year and a half, the average price of the OCC has remained at US$81/ton, during which the OCC price has changed from US$56/ton to US$114/ton.
2. Based on an average price of US$81/ton, a medium-sized factory can achieve a difference of up to US$3 million in the annual maximum and minimum income.
3, OCC's transaction costs are generally about 3 US dollars / ton.

In view of the above, there have been 12 companies that have tried to promote the rationalization of the recycled paper trade through e-commerce. Therefore, the development of e-commerce for recycled papers has its own background. It is worth mentioning here that SEFEX and CBTRE.

First, the historical background SEFEX was established in 1995, the purpose and purpose is to achieve the organization and standardization of recycled paper trade, the company's main source of income is the subscription fee and transaction fees. SEFEX is known for its accurate real-time prices and continues to develop towards a high level of modernization.

CBTRE was established in the mid-1990s and involved extensive trade in renewable resources. It uses a bulletin board to allow buyers and sellers to communicate and contact, but does not support online trading.

Obviously, the purchase and sale of raw materials for industrial enterprises is rapidly developing toward the direction of fast and efficient e-commerce. E-commerce can overcome the impact of various unfavorable factors in the traditional commodity trade, such as the barriers of time and space, complicated and difficult phone numbers, language barriers, etc., which are very beneficial to the globalization of business activities. The trade of recycled paper is no exception.

There have been many B to B (b2b) forms of e-commerce sites. Free Markets is one of them, and many manufacturers use the site for trade. According to a survey conducted by the customs authorities on an auction of about 500 million U.S. dollars worth of goods, e-commerce can attract customers more and better, lower product prices, and save transaction costs. In general, for the same product, the price on the Free Markets website is about 15% higher than the price of the traditional trading method.

Second, the e-commerce approach The basic model of b2b e-commerce is the following four: auction, exchange, classification information and transaction management platform, there is a certain difference between them. Some websites are designed to provide more information and content than to focus on transaction infrastructure; others provide comprehensive service support, including credit card payments, delivery, and all aspects of the company's internal ERP system (enterprise resource planning) .

The advantages of recycled paper e-commerce mainly include the following aspects:

1, buyers and sellers have a wider range of options.

2, greatly reducing the cost of trade.

3. Improve the mastery and control of product catalogs.

4, can provide real-time price information, higher accuracy.

The major obstacles faced in the development of e-commerce for recycled paper are: difficulty in ensuring credit quality, incomplete laws and regulations, and slow implementation of the ERP system in the paper industry. Therefore, suppliers feel that they have certain risks.

For the e-commerce companies that have just started, the first task is to establish their own brand, Amazon.com and Ebay.com is a very good e-commerce website.

3. PaperExchange.com, a well-known e-commerce website in the pulp and paper industry, is the most famous e-commerce site in the pulp and paper industry. It uses a typical directory, exchange, and auction method to provide a full range of services for the industry. Azimuth, integrated services, and the site also spent a lot of effort on recycled paper.

Fibermarket.com is a popular e-commerce site in the industry and is primarily engaged in the recycled paper business. The website has established a very successful platform for buying and selling, which can provide a more comprehensive service for the recycled paper trade.

PaperLoop.com, a website jointly created by Miller Freeman and Pegasus Capitol Advisor, publishes online content from the pulp and paper industry provided by Miller Freeman.

e-Fiber.com, which offers auctions and exchanges, deals with pulp, paper, cardboard and recycled paper.

ForestExpress.com, a b2b-type e-commerce website, is primarily engaged in the electronic trading of pulp, paper and wood products. The site is owned by Georgia-Pacific,

International Paper and Weyerhaeuser have jointly created and currently four North American pulp and paper companies are preparing to join as their strategic partners.

Paper2Paper.com is a newly established website. Unlike the previous websites mentioned above, this website is created and supported by recycled paper suppliers and specializes in the recycled paper trade.

E-cycled.com is an end-to-end e-commerce company. In addition to recycled paper, there are aluminum cans and glass.

E-scrap.com is a global trading group, located in the south of California, supported and sponsored by major pulp and paper companies such as Asia Pulp & Paper and Lindon Trading.

Recyclers World.com lists all supply and demand products (recycled materials) on the Internet for customers to choose.

Ecardboard.com is an auction website that focuses on OCC and DLK services and is currently in its infancy.

Clickpaper.com can provide new product pricing services for many industries (including the pulp and paper industry, of course), and will also develop recycled paper trade in the future, and plans to support online payments and cash payments.
Secondary Fiber.com is a new website that provides certain trading software and customers can complete transactions online.

IV. Conclusion The recycled paper trade is just a business that has just emerged. So far, the actual transaction volume completed on various websites has been very small. We hope to be active in the next two to three years and continue to consolidate and expand. And development. Of course, this depends on whether the recycled paper industry is interested in e-commerce or plans to e-commerce.