Channel Structures of Online Retail Platforms

• 成果类型: Article
• 署名作者: Ha, Albert Y.; Tong, Shilu; Wang, Yunjie
• 署名单位: Hong Kong University of Science & Technology; The Chinese University of Hong Kong, Shenzhen; Renmin University of China
• 刊物名称: M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1523-4614
• DOI: 10.1287/msom.2021.1011
• 发表日期: 2022
• 页码: 1547-1561
• 关键词: Channel Structure; online retail platform; Supplier Encroachment; Supply chain management

摘要

Problem definition: This paper investigates the channel choice problem of an online platform that exerts service effort to enhance the demand in its sales channels. Academic/practical relevance: In the existing literature on the channel structure of an online retail platform, it is usually assumed that a manufacturer sells through either the platform's agency or reselling channel but not both. In practice, many manufacturers sell the same products through both channels of the same online retail platform, a phenomenon that cannot be explained by the existing theory. Moreover, online retail platforms routinely invest in retail services that enhance the demand in their sales channels. Methodology: We develop a game-theoretic model to investigate the equilibrium channel choice, wholesale price, and retail quantity decisions. We also conduct sensitivity analysis to evaluate the impact of some parameters on the equilibrium. Results: We derive conditions under which each of the three channel structures (agency channel, reselling channel, and dual channel) emerges in equilibrium. We show that the wholesale price in the reselling channel is reduced because of the addition of the agency channel even when both channels are equally efficient, which extends the wholesale price effect because of the addition of a less efficient direct channel in the supplier encroachment literature. Our analysis highlights the flexibility of a dual channel for firms to shift sales between the two channels, which could increase the retail platform's incentive to exert service effort. Managerial implications: Our study provides useful insights tomanagers to understand andmake channel choice decisions in supply chains withmanufacturers selling through online retail platforms.