Research on pricing, service and logistic decision-making of E-supply chain with ‘Free Shipping’ strategy

Wang, Yuyan; Li, Jing

doi:10.1080/23307706.2017.1391138

Cited by 17 publications

(5 citation statements)

References 26 publications

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“…At the same time, product demand is also positively correlated with the intensity of network externalities due to the Online direct selling's advertising consumer perception that "the higher the sales volume, the better the product". Drawing on Wang and Li (2018) and Wang et al (2020d), this paper uses a linear demand function to describe this phenomenon. Specifically, the demand function is q ¼ a − bp þ ds.…”

Section: Model Descriptionsmentioning

confidence: 99%

Advertising and pricing of online direct selling considering network externalities

Shen

Fan

Wang

et al. 2022

IMDS

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PurposeConsidering the network externalities of online selling, this paper builds three different online direct selling models: manufacturer direct selling (MN model), network platform direct selling (NN model) and retailer direct selling (RN model). The optimal advertising and pricing decision and corporate profits under each selling model are investigated.Design/methodology/approachCombining the characteristics of online direct selling, this paper formulates direct selling models that are dominated by different companies as Stackelberg game models. Numerical analyses are carried out, along with the comparison of the equilibrium solutions for each model.FindingsThe authors' research shows that increasing network externalities is conducive to the development of enterprises. The network platform's profit is the lowest in the RN model and the highest in the NN one. The comparison of manufacturers' profits between the MN model and the NN model primarily depends on consumers' sensitivities for sales price and advertising promotion level. The manufacturer does not benefit from the RN model due to the lowest efficiency.Originality/valueCoupled with three different online direct selling models and detailed analyses of the optimal solutions, this study has enriched the theoretical foundation of online direct selling. Moreover, this study extends the research of network externalities to the field of e-commerce, revealing the network externalities' influence on the decision-making of the e-supply chain.

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Section: Model Descriptionsmentioning

confidence: 99%

Advertising and pricing of online direct selling considering network externalities

Shen

Fan

Wang

et al. 2022

IMDS

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show abstract

“…A lot of methodologies and models have been developed for SC configuration in the e-commerce context [60][61][62][63][64][65][66][67][68][69][70]. Cheshmehgaz et al [71] presented a model that aimed to minimize response time and transportation cost, and facility cost, considering potential suppliers, DCs, and deterministic demand from consumers.…”

Section: Supply Chain and Network Designmentioning

confidence: 99%

Implementing E-Commerce from Logistic Perspective: Literature Review and Methodological Framework

et al. 2022

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E-commerce is always more diffused as a selling channel around the whole world market, and its importance has increased and continues to increase with the COVID-19 pandemic emergency. It provides enterprises a lot of opportunities, as the importance of physical stores to sell goods is bypassed. However, it has also changed the role of logistics in the supply chain. For this reason, this work aims to identify the main logistics research areas related to e-commerce implementation and the factors and key performance indicators, which should be taken into account for each logistics research area, with particular attention to sustainable aspects. For doing this, a structured and comprehensive literature analysis is carried out. Keywords associated with e-commerce and logistics areas are matched to identify the most interesting works related to its implementation. From the analysis, five main research areas are identified: Supply Chain Network Design (SCND); Outbound Logistics (OL); Reverse Logistics (RL); Warehousing (WR); and IT and data management (E-IT). For each area, key factors, strategies and performance indicators have been identified. Finally, a methodological framework that summarizes the results of the analysis is presented; this is a useful tool for managers to implement or expand their e-commerce business. Many works are focused on one research area, carrying out critical factors, models, and methods to implement that topic. Instead, the methodological framework presented here summarizes multiple research areas from a logistic point of view, identifying for each one input and output variables and how they influence each other.

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“…In contrast, the uncertainty of price elasticity has a moderate impact on these decisions. Wang and Li [15] indicated that the platform's service level is lower, and profit is higher in the mode dominated by the dominant platform. Furthermore, the sales price and the platform's service and profit will increase with the growth of the commission and decrease with the service cost elasticity coefficient.…”

Section: Literature Reviewmentioning

confidence: 99%

Joint Optimization Decision of Online Retailers’ Pricing and Live‐Streaming Effort in the Postepidemic Era

Liu¹,

Sun

2022

Complexity

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The isolation requirements of the coronavirus epidemic and the intuitive display advantages of live-streaming have led to an increasing number of retailers shifting to social live-streaming platforms and e-commerce live-streaming platforms to promote and sell their products in real time. However, the provision of live-streaming services will also incur high live-streaming effort costs. In this paper, we develop two decision models for retailers to sell goods through a single online shop and both online shop and live-streaming room; we also present the optimal decisions of pricing and live-streaming efforts. Furthermore, we identify the profitability conditions for retailers to determine when to provide live-streaming services. In addition, we examine the impact of the provision of live-streaming services on the optimal price and live-streaming effort. We obtain three findings. First, there is a unique optimal decision on the price and live-streaming effort under certain conditions. Second, when the effect coefficient of the live-streaming room reaches a certain threshold, there are enough customers who enter the live-streaming room to watch and buy and it is profitable for retailers to provide live-streaming service. Finally, the optimal price and live-streaming effort increase with the increase in average return loss, the effect coefficient of live-streaming effort, and the extra return rate and decrease with the increase in the proportion of customers who choose to buy in the online shop and the price discount coefficient in the live-streaming room.

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Research on pricing, service and logistic decision-making of E-supply chain with ‘Free Shipping’ strategy

Cited by 17 publications

References 26 publications

Advertising and pricing of online direct selling considering network externalities

Advertising and pricing of online direct selling considering network externalities

Implementing E-Commerce from Logistic Perspective: Literature Review and Methodological Framework

Joint Optimization Decision of Online Retailers’ Pricing and Live‐Streaming Effort in the Postepidemic Era

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