Strategic contracting and hybrid use of agency and wholesale contracts in e-commerce platforms

Zennyo, Yusuke

doi:10.1016/j.ejor.2019.08.026

Cited by 168 publications

(49 citation statements)

References 30 publications

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“…This paper also relates to the studies of sales mode selection, which have drawn widespread attention in the literature [1,[29][30][31][32][33][34][35][36][37][38][39]. Several studies consider the case where the manufacturer chooses sales mode on the platform.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Offline Service Effort Strategy on Sales Mode Selection in an E-Commerce Supply Chain with Showrooming Effect

Wang

Chaolu

2022

JTAER

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In practice, several e-commerce platforms offering online channels not only act as resellers but also serve as the marketplace. However, the existing literature rarely explores the impact of the offline service effort strategy with the showrooming effect on the platform’s optimal sales mode. Considering a supply chain consisting of a manufacturer and a platform, we examine the interplay between the manufacturer’s offline service effort strategy and the platform’s online sales modes. We derive conditions under which each of the four scenarios (adopting the service effort strategy under the agency or reselling modes, not adopting the service effort strategy under the agency or reselling modes) emerges in equilibrium. Our results show that the service effort strategy with the showrooming effect can induce the platform’s sales mode selection. Specifically, when the referral fee is low and the showrooming effect is moderate, the platform may choose the agency mode instead of the reselling mode, while when the referral fee is sufficiently high and the showrooming effect is moderate, the platform may adopt the reselling mode instead of the agency mode. Furthermore, when the competition intensity and showrooming effect are sufficiently small, the service effort strategy will be beneficial to the manufacturer and the platform, creating a win-win situation. When the competition intensity or showrooming effect is sufficiently large, the service effort strategy may cause a prisoner’s dilemma for the manufacturer and the platform. In addition, the supply chain consisting of a manufacturer, an offline store and an online platform is also studied in the extension section, and we find that our main results are valid.

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Section: Literature Reviewmentioning

confidence: 99%

The Impact of Offline Service Effort Strategy on Sales Mode Selection in an E-Commerce Supply Chain with Showrooming Effect

Wang

Chaolu

2022

JTAER

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“…Sales model selection has been a popular research topic in recent years, and much of the existing literature has focused on the trade-offs between resale and agency models for supply chain members under different conditions [2], [5], [6], [7], [12], [31], and many scholars have also revealed the key drivers that influence sales model selection [32], [33], [34], [35]. Abhishe et al [9] studied the impact of online on brick-and-mortar demand spillover effects, among others, on the choice of platform sales model and found that the preference of platforms for resale or agency sales depends on whether electronic channel sales have a positive or negative impact on the demand for traditional channels.…”

Section: A Sales Model Selectionmentioning

confidence: 99%

“…The second annual "SME Impact Report" released by Amazon 2021 shows that revenue from reselling products amounted to $114.8 billion and total sales from agency selling exceeded $160 billion. As a result, the issue of choosing a sales model for e-commerce platforms has become a hot topic in recent years [2], [10], [11], [12], [13].…”

Section: Introductionmentioning

confidence: 99%

Optimized Combination of e-commerce Platform Sales Model and Blockchain Anti-Counterfeit Traceability Service Strategy

Guo¹,

et al. 2021

IEEE Access

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In the e-commerce market, many e-commerce platforms act as resellers when selling products, and act as agents when selling other products. In the sales process, e-commerce platforms can either build their own blockchain anti-counterfeit traceability platforms or cooperate with third-party blockchain anti-counterfeit traceability platforms. This will generate four scenarios: (a) reseller, building its own platform (RE); (b) reseller, cooperating with a third-party platform (RO); (c) agent, building its own platform (ME); (d) agent, cooperating with a third-party platform (MO). Therefore, this paper constructs a differential game model under four modes to explore the interaction between the choice of sales mode and the choice of anti-counterfeit traceability service strategy. The results show that suppliers' profits are influenced by various aspects. On the one hand, in small-scale markets, the situation in which suppliers can realize higher profits evolves from ME to RO as the wholesale price increases , and in large-scale markets, suppliers are more profitable in the ME mode. On the other hand, with the increase of market scale and the decrease of unit price of anti-counterfeit traceability service of third-party platform, the situation that suppliers can achieve higher profit evolves from RE to RO and then to RE. For e-commerce platform, selfbuilt platform is a better choice. In the small-scale market, as the market size increases, the cost performance of anti-counterfeit traceability service decreases, and the best choice for e-commerce platform evolves from resale to agency sales, and in the large-scale market, the best choice for e-commerce platform is resale.

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“…Based on e-commerce, suppliers of superior products will be able to offset price transparency with value transparency. Suppliers of undifferentiated products need to reduce their costs in order to compete on price (Zennyo, 2020).…”

Section: Critical Success Factors For B2b E-commercementioning

confidence: 99%

Adoption of E-Commerce and M-Commerce Marketing Practices

Mandal

2021

International Journal of Business Strategy and Automation

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E-commerce has become an important marketing channel with the increasing usage of internet by customers. Companies use both physical intermediaries and online distribution channels for selling their products and services. The study discusses about pure-click companies which sell products online and about brick-and-click companies which sell products both online and through intermediaries. The study focuses on m-commerce which is becoming an important distribution channel and preferred mode of transaction with the increasing usage of smart phones. Companies practicing e-commerce and m-commerce adopt a number of strategies to delight their customers and these strategies are discussed. Both e-commerce and m-commerce have a number of privacy and security issues. Companies should be aware of these issues and formulate measures to ensure privacy and security of information shared by customers. All these will help companies in adopting e-commerce and m-commerce, delighting their customers, building long-term relationships, and in achieving business excellence.

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Strategic contracting and hybrid use of agency and wholesale contracts in e-commerce platforms

Cited by 168 publications

References 30 publications

The Impact of Offline Service Effort Strategy on Sales Mode Selection in an E-Commerce Supply Chain with Showrooming Effect

The Impact of Offline Service Effort Strategy on Sales Mode Selection in an E-Commerce Supply Chain with Showrooming Effect

Optimized Combination of e-commerce Platform Sales Model and Blockchain Anti-Counterfeit Traceability Service Strategy

Adoption of E-Commerce and M-Commerce Marketing Practices

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