Merchants Competing on E-Commerce Platforms

Abstract

The importance of marketplaces in e-commerce has increased. More and more merchants are trying to use e-commerce platforms as a distribution channel. With the increasing competition, merchants are faced with the challenge of continuing to sell their products to consumers through marketplaces at a profit. This is especially true if the consumer has already chosen a certain product and now only decides from which merchant to buy the product. This chapter therefore examines for different customer segments which merchant-related factors — also and in particular apart from the price — influence the purchase decision. After reviewing relevant literature, various factors are identified through structured interviews. An online survey is then used to simulate a total of 3,485 purchase decisions with different factor characteristics. In addition to the price, the ratings of a merchant and the delivery time are identified as central factors influencing the purchase decision.