A comparative study of entry mode options for E-commerce platforms and suppliers

Wang, Xin; Wang, Xinyu; Yu, Baoqin; Zhang, Shuhua

doi:10.1016/j.elerap.2019.100888

Cited by 19 publications

(5 citation statements)

References 34 publications

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“…This work also contributes to the literature on platform retailing (Jiang et al, 2011;Wang et al, 2019;Wang et al, 2020;Wei et al, 2020;Qin et al, 2021). Some studies examine the effects of some important factors on platform retailing, such as the substitutability of two products (Jerath and Zhang, 2010), online product reviews (Kwark et al, 2013;Song et al, 2020), marketing efforts (Hagiu and Wright, 2016), and the degree of competition between platforms (Abhishek et al, 2016).…”

Section: Platform Retailingmentioning

confidence: 99%

Retailer's selling mode choice under different competition forms

Wang

et al. 2022

Int Trans Operational Res

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We examine the online retailer's selling mode choice under different competition forms in an online retailing supply chain. Four models based on two selling modes (i.e., agency selling and direct selling) and two competition forms (i.e., Bertrand and Cournot) are constructed, and the conditions for the online retailer to choose the optimal selling mode are identified. The results show that the online retailer's optimal choice of selling mode is mainly affected by the direct selling cost under Bertrand competition, whereas it is affected jointly by the direct selling cost, competition intensity, and commission rate under Cournot competition. Additionally, in the direct selling mode, both the online retailer and platform can obtain more profits under Cournot competition; however, in the agency selling mode, the online retailer can benefit from Bertrand competition when the commission rate is moderate, and Cournot competition otherwise. Finally, the effects of competition intensity, commission rate, and direct selling cost on the profits of the online retailer and platform are investigated by numerical analysis.

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Section: Platform Retailingmentioning

confidence: 99%

Retailer's selling mode choice under different competition forms

Wang

et al. 2022

Int Trans Operational Res

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“…Chen and Xie (2007) proposed that the platforms attract more users by improving network effects, which not only improves the competitive advantage, but also increases the revenue spillover of cooperation. Wang et al (2019) indicated that the goal of SMEs in entering the e-commerce platform is to maximize the benefits. Their entry modes are affected by entry fees, advertising expenses and network effects.…”

Section: Scholarly Work On Cross-network Effectmentioning

confidence: 99%

An evolutionary game-theoretic analysis of cooperation strategy between SMEs and cross-border e-commerce platforms considering the cross-network effect

2023

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PurposeThis paper aims to propose the mechanism of cross-network effect embedded, which can help cross-border e-commerce (CBEC) platforms strengthen cooperative relationships with sellers more equitably and effectively by using the network structural characteristics of the platforms themselves.Design/methodology/approachA two-stage evolutionary game model has been used to confirm the influence factors. The mathematical derivation of evolutionary game analysis is combined with the simulation method to examine the role of cross-network effect in cooperation. The evolutionary game model based on the cross-network effect is proposed to achieve better adaptability to the study of cooperation strategy from the two-sided market perspective.FindingsThe evolutionary game model captures the interactions of cross-network effect and the influence factors from a dynamic perspective. The cross-network effect has a certain substitution on the revenue-sharing rate of SMEs. CBEC platforms can enhance the connection between consumers and the website by improving the level of construction, which is a good way to attract sellers more cost-effectively and efficiently.Research limitations/implicationsThis study provides a new method for the validation of the cross-network effect, especially when data collection is difficult. But this method is only a numerical simulation. So the conclusions still need to be further tested empirically. Besides, researchers are advised to explore the relationship between the added user scale and the cross-network effect in some specificCBEC platforms.Practical implications This study provides a new method for the validation of the cross-network effect, especially when data collection is difficult. But this method is only a numerical simulation. So the conclusions still need to be further tested empirically. Besides, researchers are advised to explore the relationship between the added user scale and the cross-network effect in some specific CBEC platforms.Originality/valueInvestigations that study cooperation strategy from the cross-network effect perspective in CBEC are limited. The research figured out which influence factors are affected by the cross-network effect in cooperation. A two-stage evolutionary game model was proposed to explain the interaction of the factors. The evolutionary game analysis with a simulation method was combined to highlight the role of cross-network effect on cooperation strategy to give a deeper investigation into the sustainable cooperation ofCBEC.

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“…It is widely accepted that "demand-enhancing services" play an important role in the operational decisions of e-commerce platforms. Obviously, logistics service is one of demand-enhancing services because consumers prefer to products with lower delivery time and commodity wastage [48][49][50][51][52][53][54][55][56]. A massive amount of literature examine how logistics services can affect the operational decisions of e-commerce platforms.…”

Section: The Effects Of Logistics Service On the Operational Decisions Of E-commerce Platformsmentioning

confidence: 99%

“…Subsequently, more studies examine whether the platform should provide logistics services. Wang et al [52] introduce two supplier's entry modes which are FBP and SOP, respectively. As a marketplace, the e-commerce platform provides logistics service in FBP case, while does not in SOP case.…”

Section: The Effects Of Logistics Service On the Operational Decisions Of E-commerce Platformsmentioning

confidence: 99%

How Should E-Commerce Platforms Subsidize Retailers with Logistics Constraints during an Epidemic Scenario? Considering Power Structure and Altruistic Preference

Zhang

2021

JTAER

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To maintain the sustainable development of a platform’s economy, e-commerce platforms put forward various subsidy programs to retailers selling on them during COVID-19. This paper investigates an e-commerce platform’s decision on subsidizing a retailer selling on it with logistics constraints during an epidemic scenario, with a focus on the role of power structure and altruistic preference. By constructing two Stackelberg game models, the research obtains the optimal subsidy under two power structures (i.e., the dominant platform and the weaker platform), respectively. The comparison between them shows that the conditions of the dominant platform giving subsidies (both altruistic preference and logistics constraints should be higher enough) are stricter than the weaker platform. Considering the same altruistic preference and logistics constraints, the optimal subsidy provided by the weaker platform should always be not less than the dominant platform. However, the weaker platform, surprisingly, can get more utility by lowering its altruistic preference voluntarily when the commission fee is low. No matter what the power structure is, the optimal subsidy increases with the logistics service coefficient and altruistic preference, and the dominant member’s profit/utility is not less than the weaker one, which confirms “the first mover advantage”. Finally, more managerial implications to the platform-retailer systems are discussed.

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A comparative study of entry mode options for E-commerce platforms and suppliers

Cited by 19 publications

References 34 publications

Retailer's selling mode choice under different competition forms

Retailer's selling mode choice under different competition forms

An evolutionary game-theoretic analysis of cooperation strategy between SMEs and cross-border e-commerce platforms considering the cross-network effect

How Should E-Commerce Platforms Subsidize Retailers with Logistics Constraints during an Epidemic Scenario? Considering Power Structure and Altruistic Preference

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