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Resale or Wholesale? Consider the Sales Model Choice of the Social Responsibility of the E-commerce Platform

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DOI: 10.23977/ferm.2022.050716 | Downloads: 4 | Views: 425

Author(s)

Kun Zhang 1, Haotian Chen 1

Affiliation(s)

1 School of Business, Central South University of Forestry and Technology, Changsha, China

Corresponding Author

Haotian Chen

ABSTRACT

To help e-commerce supply chain enterprises choose appropriate online sales models, and study how e-commerce platforms undertake corporate social responsibility to maximize profits. For the three-tier e-commerce supply chain composed of suppliers, logistics enterprises and e-commerce platforms, under the wholesale and resale online sales channels, build decentralized decision-making models and centralized decision-making models led by suppliers and e-commerce platforms respectively, and study the impact of e-commerce platforms' social responsibility on supply chain decision-making and profits. The research shows that: (1) The social responsibility of e-commerce platforms will lead to the increase of wholesale prices and retail prices of goods, which will help to increase the profits of the whole e-commerce supply chain and its members under the wholesale model, help suppliers and logistics enterprises to make profits under the resale model, but will lead to the loss of the profits of e-commerce platforms themselves. (2) Under the resale channel, the increase of the commission ratio of e-commerce platforms will reduce the profits of suppliers and logistics enterprises, and improve the profits of e-commerce platforms. However, under the leadership of suppliers, when the elasticity coefficient of e-commerce platform social responsibility is large, the excessive commission ratio will lead to the reduction of e-commerce platform profits. (3) When suppliers and e-commerce platforms dominate respectively, when the commission exceeds a certain critical value, the profits of suppliers and logistics enterprises under resale channels will be lower than those of wholesale channels, while the profits of e-commerce platforms will exceed those of wholesale channels.

KEYWORDS

E-commerce, stackelberg competition, corporate social responsibility

CITE THIS PAPER

Kun Zhang, Haotian Chen, Resale or Wholesale? Consider the Sales Model Choice of the Social Responsibility of the E-commerce Platform . Financial Engineering and Risk Management (2022) Vol. 5: 120-143. DOI: http://dx.doi.org/10.23977/ferm.2022.050716.

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