Channel Structures of Online Retail Platforms

Ha, Albert Y.; Tong, Shilu; Wang, Yunjie

doi:10.1287/msom.2021.1011

Cited by 157 publications

(66 citation statements)

References 25 publications

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“…In both of these papers, the online retailer offers either the agency or reselling format, but not both, to the manufacturer. Ha et al (2021) investigate the impact of a platform's service effort on a manufacturer's channel choice when there is no demand uncertainty and information sharing is not an issue. Our paper makes a contribution to this literature by analyzing the interplay between encroachment and information sharing in an online retail platform, and showing that these two decisions are complementary.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Assuming no demand uncertainty, Ha et al (2021) investigate the role of service effort in determining whether a manufacturer sells the same product through one or both of the agency and reselling channels of the same online retailer. There is no comprehensive study that considers the channel choice problem in Ha et al (2021) under demand uncertainty, and how the channel choice decision depends on the retailer's information sharing policy.…”

Section: Introductionmentioning

confidence: 99%

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Supplier Encroachment, Information Sharing, and Channel Structure in Online Retail Platforms

Luo

Shang³

2022

Production and Operations Management

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129

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I n this study, we develop a game-theoretic model to study the encroachment and information sharing decisions in a supply chain with a manufacturer selling through an online retail platform. In the base model, the manufacturer decides whether to encroach or not by selling through an agency channel, in addition to an existing reselling channel, at the same platform, who decides whether or not to share information with the manufacturer. We fully characterize the equilibrium decisions and show how they depend on the commission rate of the agency channel, channel substitutability, and information accuracy. Our analysis unfolds a novel wholesale price effect that extends related results in the literature. We also show that encroachment and information sharing are complementary, and therefore managers should not ignore the impact of one decision on the other decision even when the latter is not a primary motivation of the former. We study several model extensions to obtain additional insights and show that the major findings of the base model are robust and remain mostly valid when some modeling assumptions are changed.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Supplier Encroachment, Information Sharing, and Channel Structure in Online Retail Platforms

Luo

Shang³

2022

Production and Operations Management

Self Cite

129

View full text Add to dashboard Cite

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“…Pu et al [ 33 ] investigated three possible online sales strategies (including direct selling, reselling, and agency selling) for a manufacturer that also distributes its products through an independent retailer using traditional channels and derived the conditions under which each strategy is optimal. Ha et al [ 12 ] further derived conditions under which each of the three channel structures (agency channel, reselling channel, and dual-channel) emerges in equilibrium. Liu et al [ 28 ] investigated a platform’s preferences over reselling and agency selling considering the impact of data-driven marketing and found that platforms are more inclined to adopt a reselling model as data-driven marketing improves.…”

Section: Related Literaturementioning

confidence: 99%

Reselling or agency selling? The strategic role of live streaming commerce in distribution contract selection

Wang

Zhao

2022

Electron Commer Res

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The booming live streaming business has increased the number of consumer options for purchase channels, which has had a significant impact on firm sales models and management practices. This paper considers a multiechelon supply chain in which an upstream supplier can sell products through an online platform and a live streaming sales channel, and the online platform can choose to sign a reselling agreement or an agency selling agreement with the supplier. By constructing a Stackelberg game, we theoretically derive the equilibrium strategies of the supply chain members under different selling agreements in the presence of a live streaming sales channel. Specifically, we find that under the reselling agreement, the optimal retail price for the platform decreases with an increase in the commission rate, while the retail price for the live streaming channel always increases with an increase in the commission rate, and the relationship between the wholesale price and the commission rate depends on the ratio of the coefficient on the internet celebrity’s effort for the live streaming channel to that for the online platform. Under the agency selling agreement, there is a threshold in the agency fee. The impact of the commission rate on pricing strategy on one side of the threshold is opposite that on the other side. Furthermore, we numerically explore the impacts of the system parameters on the selection of the sales model, profit, and the decision-making of the supply chain members and identify the conditions under which agency selling and reselling are chosen when there is a live streaming sales channel. Interestingly, we find that the internet celebrity should not charge a commission rate that is too large; otherwise, it harms others without benefiting the celebrity. Moreover, when the supplier chooses to hire an internet celebrity to sell goods via live streaming, the supplier should choose a celebrity with either an extremely large following or with little influence but should not choose a celebrity with only moderate influence.

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“…Conversely, we consider remanufacturing from the perspectives of marketing channel choice in the presence of retailing platforms. Literature on marketing decisions of retail platforms [ 25 , 26 ] would surely make sense on the remanufacture marketing decision, however, we would not provide more since the literature body is so large and mature.…”

Section: Literature Reviewmentioning

confidence: 99%

Remanufacturing Marketing Decisions in the Presence of Retailing Platforms in the Carbon Neutrality Era

Qiao

Zhao

Zou

2021

IJERPH

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Background: In response to the specific goals of carbon peaking and neutrality, remanufacture is becoming increasingly popular. With the marketplace being more and more adopted, an independent remanufacturer (IR) could sell its products via either the reselling model or the marketplace model. In order to contribute more to carbon neutrality, we investigate the optimal marketing decision for remanufacturing. We construct two models namely reselling model and the marketplace model, and further explore the effects of each marketing model on the decisions and profits of both the IR and the platform firm. Methods: We examine a platform firm that sells new products and an IR that sells remanufactured products under two marketing models based on game theory: (1) a reselling model in which the IR sells remanufactured products to the platform firm; then the platform firm resells to consumers; (2) a marketplace model in which the IR sells remanufactured products to consumers through the platform. Results: Our results show that aiming at carbon neutrality, the IR would be induced by the marketplace model to undertake remanufacturing operations and remanufacture products as many as it could still meet the market demand. Meanwhile, the marketplace model encourages the IR to rethink its work and manufacture more products under certain conditions. Furthermore, both the platform firm and the IR prefer the marketplace model to the reselling model within a Pareto zone. In addition, we find that both the platform firm and the IR could benefit from the marketplace model when they take carbon neutrality under consideration. Conclusions: This study provides managerial insight from two aspects. Remanufactures could decide their marketing model via thorough consideration of market competition, commission rate, and production cost. The government could do more to protect the marketplace environment in order to stimulate the internal vitality of the platform in the achievement march of carbon neutrality purpose. That is, this study will provide good guidance for sustainable development decision-making of remanufacturing marketing platforms, and further contributes to the achievement of the carbon neutrality goal.

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Channel Structures of Online Retail Platforms

Cited by 157 publications

References 25 publications

Supplier Encroachment, Information Sharing, and Channel Structure in Online Retail Platforms

Supplier Encroachment, Information Sharing, and Channel Structure in Online Retail Platforms

Reselling or agency selling? The strategic role of live streaming commerce in distribution contract selection

Remanufacturing Marketing Decisions in the Presence of Retailing Platforms in the Carbon Neutrality Era

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