{"title":"Selling mode choice with logistics service: Reselling or online marketplace?","authors":"Jia Qian , Jiannan Shen , Xiaofeng Shao","doi":"10.1016/j.elerap.2024.101434","DOIUrl":null,"url":null,"abstract":"<div><p>Reselling or online marketplace are the two common selling modes for e-tailers in online retailing, and in each selling mode, logistics service is an important strategy that is provided by e-tailers, manufacturers, or third-party logistics (abbreviated as 3PL) companies. We formulate a multi-stage game to sequentially investigate the optimal selling mode and the equilibrium of service format selection and find that under the identical logistics service costs for all service providers, the e-tailer is willing to choose reselling when the fraction of the manufacturer’s revenue sharing as a commission rate is low or choose online marketplace when the fraction is medium–low. When the fraction is medium to high, the selling mode choice is influenced by the fraction and the logistics service’s cost sensitivity to demand, and interestingly the e-tailer does not always choose online marketplace with a high fraction of revenue sharing. Further, we find the logistics service undertaken by the e-tailer is the equilibrium when the e-tailer chooses reselling, or online marketplace with a medium to high fraction, while the manufacturer is the equilibrium when the e-tailer chooses online marketplace with a medium–low fraction. Moreover, we identify the “win–win” conditions by examining the consistency in choosing the selling mode between the e-tailer and the manufacturer. Finally, the e-tailer and manufacturer would outsource the logistics service to a 3PL company with a lower service cost regardless of the selling mode. Last, the optimal selling mode and the consistency are robust under each extended discussion.</p></div>","PeriodicalId":50541,"journal":{"name":"Electronic Commerce Research and Applications","volume":"67 ","pages":"Article 101434"},"PeriodicalIF":5.9000,"publicationDate":"2024-07-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Electronic Commerce Research and Applications","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1567422324000796","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
Reselling or online marketplace are the two common selling modes for e-tailers in online retailing, and in each selling mode, logistics service is an important strategy that is provided by e-tailers, manufacturers, or third-party logistics (abbreviated as 3PL) companies. We formulate a multi-stage game to sequentially investigate the optimal selling mode and the equilibrium of service format selection and find that under the identical logistics service costs for all service providers, the e-tailer is willing to choose reselling when the fraction of the manufacturer’s revenue sharing as a commission rate is low or choose online marketplace when the fraction is medium–low. When the fraction is medium to high, the selling mode choice is influenced by the fraction and the logistics service’s cost sensitivity to demand, and interestingly the e-tailer does not always choose online marketplace with a high fraction of revenue sharing. Further, we find the logistics service undertaken by the e-tailer is the equilibrium when the e-tailer chooses reselling, or online marketplace with a medium to high fraction, while the manufacturer is the equilibrium when the e-tailer chooses online marketplace with a medium–low fraction. Moreover, we identify the “win–win” conditions by examining the consistency in choosing the selling mode between the e-tailer and the manufacturer. Finally, the e-tailer and manufacturer would outsource the logistics service to a 3PL company with a lower service cost regardless of the selling mode. Last, the optimal selling mode and the consistency are robust under each extended discussion.
期刊介绍：
Electronic Commerce Research and Applications aims to create and disseminate enduring knowledge for the fast-changing e-commerce environment. A major dilemma in e-commerce research is how to achieve a balance between the currency and the life span of knowledge.
Electronic Commerce Research and Applications will contribute to the establishment of a research community to create the knowledge, technology, theory, and applications for the development of electronic commerce. This is targeted at the intersection of technological potential and business aims.
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