The Research On B2B Auction For Sinopec

China Petroleum & Chemical Corporation (Sinopec Group) established in 1998, which based on the reorganization of the Oversize Oil Chemical Industry Group. Its petrochemical products accounted about 70% for the domestic total production capacity, holds the dominant position in China. But as the Middle East, Brazil and other regions of the petrochemical plant to expand production, Sinopec is also facing the huge impact of foreign imports of materials. How to achieve effectively allocated the resources in different regional, shorten transaction time, reduce transaction costs, improve the company’s profit, have been a topic of Sinopec.With the development of internet, e-commerce has been developed rapidly in recent years. The legal laws and regulations, technology and other aspects of the comprehensive also give a chance for Sinopec to develop a new business. Now there are three types for e-commerce, including B2B, B2C, C2C. B2B transaction volume has accounted about 70% for the overall e-commerce transaction volume. Sinopec has also implemented an electronic commerce, but there are some differences with e-commerce as we known, they operate the e-commerce coupled with traditional sales. The auction is a very effective means to optimize the allocation of the resource, electronic auction business has been used in B2B, B2C, C2C models widely at present. This article bids auction into Sinopec’s B2B business, in order to improve the efficiency of Sinopec sales and get more profit.Firstly, I introduce the domestic and foreign research as this article, elaborate Sinopec’s current business model as well as the advantages and disadvantages, and the B2B electronic commerce transactions and auction concept, types, characteristics and structure. Secondly, discuss about the auction method for Sinopec’ B2B business, in order to keep the business carried on smoothly, I tailor to risk control model to prevent breach of contract, and describe the other models in the system, such as chargeback and appeal system, settlement system, distribution system, market information system, evaluation system. Then build up the auction model based on B2B. This article will integrate B2B and auction, and establish the model for Sinopec, which has great theoretic significance and practical application value.