Optimal trade-in rebate payment strategies for B2C platforms under different recycling models

Li, Huayi; ,; Yi, Yuyin

doi:10.3934/jimo.2023129

Cited by 2 publications

(3 citation statements)

References 56 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Notably, though Cao et al (2019) compared the gift cards and cash coupons for trade-in program on sales platforms, the impacts of the agency sales mode with trade-in were not taken into consideration. Li and Yi (2024) analyzed the trade-in strategy for online platforms across varied recycling and gift card modes. Their findings revealed that sales commission rates will affect the recycling rebates of used products.…”

Section: Literature Reviewmentioning

confidence: 99%

Trade-in program in online platforms considering network externalities and recycling services

Yu,

Li,

2024

Preprint

View full text Add to dashboard Cite

Consumers trade their used products for new ones through online platforms, thereby integrating internet shopping and recycling. Two trade-in models are developed, i.e., the platform model where the manufacturer cooperates with an online retail platform to sell products and the online retail platform introduces trade-in program and manufacturer model where the manufacturer's own platform introduces trade-in program. This study examines the trade-in program offered by online platforms with a consideration of network externalities and heterogeneous consumers, and analyzes the decisions of pricing and recycling service. The research indicates that heightened network externalities can enhance recycling services, promote trade-in program development, and increase the demand for trade-in. The trade-in recycling service gets higher in the manufacturer model, whereas the sales price in the platform model is elevated due to sales commission rates. However, the manufacturer model does not always have higher market demand than the platform model, when both the commission rate and recycling revenue are high, the platform model have higher market demand. Although the manufacturer profits more than the online retail platform in the platform model, it is suggested that the manufacturer should introduce the trade-in program on the self-owned platform since the profit of manufacturer is larger under the manufacturer model.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Trade-in program in online platforms considering network externalities and recycling services

Yu,

Li,

2024

Preprint

View full text Add to dashboard Cite

show abstract

“…Aihuishou is a famous O2O electronics recycler in China, which on the one hand recycles used electronics through establishing offline stores and transfers them to JD.com's second-hand electronics retailer "Paipai", and on the other hand cooperates with JD.com to promote its electronics recycling website in JD.com's e-mall [11]. The cooperation between Aihuishou and JD.com can be regarded as a typical case in this study.…”

Section: Case Studymentioning

confidence: 99%

“…As online channels become a prevailing trend, not only have many third-party recyclers established offline stores and online platforms for electronic product recycling at the recycling entity level, but also numerous professional e-commerce companies have ventured into the electronic product recycling industry [6]. For example, the e-commerce giant, JD.com, is cooperating with Aihuishou [11], which transfers their recycled electronics to the former to sell on Paipai.com. However, recyclers and e-tailers may encounter a series of problems from a dual-channel recycling cooperative strategy.…”

Section: Introductionmentioning

confidence: 99%

A Dual-Channel Cooperative Strategy between Recyclers and E-Tailers for the Offline and Online Recycling of Waste Electronics

Wei,

Wang,

Yang

2024

Sustainability

View full text Add to dashboard Cite

A Stackelberg game model was formulated for dual recycling channels for a supply chain with a recycler and an e-tailer, who recycle and resell waste electronics. A reverse solution was adopted to find the optimal recycling prices, the optimal selling prices, and the supply chain’s overall profits for cooperative and non-cooperative models. The profits gained in the cooperative model were greater. We proposed a revenue-sharing contract to investigate the profit distribution. Finally, we validated the effectiveness of the cooperative recycling model through numerical simulations, calculated the revenue-sharing factors, and analyzed the effects of these factors on the decisions of the recycler and the e-tailer. By comparing the dual-channel non-cooperative recycling model based on online and offline recycling by the recycler to the dual-channel cooperative recycling model based on offline recycling by the recycler and online recycling by the e-tailer, as well as examining the results in relation to the contracts, we found that the recycler and the e-tailer should cooperate in recycling electronics to maximize the supply chain’s overall profits. However, the e-tailer will see reduced profits and may be less willing to cooperate, so it is necessary to formulate a revenue-sharing contract. The revenue-sharing factors in the contract must be set within a reasonable range; otherwise, either party could see reduced profits and renounce cooperation, even if the supply chain’s overall profit is maximized. The recycler is the more critical party for achieving cooperation. In this paper, we research the cooperative strategy between recyclers and e-tailers that is conducive for expanding the market scale of waste electronics recycling and improving the profits of both parties, while promoting the sustainable development of the supply chain.

show abstract

Optimal trade-in rebate payment strategies for B2C platforms under different recycling models

Cited by 2 publications

References 56 publications

Trade-in program in online platforms considering network externalities and recycling services

Trade-in program in online platforms considering network externalities and recycling services

A Dual-Channel Cooperative Strategy between Recyclers and E-Tailers for the Offline and Online Recycling of Waste Electronics

Contact Info

Product

Resources

About