A Procedure to Set Prices and Select Inventory in Thinly Traded Markets Using Data from eBay
Abstract
:1. Introduction
2. Method
3. Results
3.1. Listed Items and Duration
3.2. Determining the Distribution of Listed Items
3.3. Duration and Prices
4. Discussion
Author Contributions
Funding
Data Availability Statement
Conflicts of Interest
Appendix A
- Let be the number of items kept in the portfolio and let j be the number of iterations (j = 0, 1, 2, …).
- when j = 0, .
- Let C be the total cost of items based on current cycle’s portfolio.
- Let α be the cost of an item, T be the duration of the listing, m be the index of items kept in the jth cycle. The cost to source an item is assumed to increase in proportion to duration based on data from the original portfolio,
- =
- Compare each items’ profit vs. cost such that if >, keep the item in the portfolio. Otherwise, delete the item from the portfolio.
- Recalculate
- Repeat this process until there is no < to obtain the final optimal portfolio.
- proc import out=my_Ebay
- datafile=‘C:\SAS\Ebay’
- dbms=xlsx replace;
- sheet=”Orig data”my_Ebay
- run;
- /*Add column of 1/T=orig d*/
- data my_Ebay;
- set my_Ebay;
- orig_d=1/Dur__Months;
- run;
- sheet="Orig data";
- run;
- proc contents data=my_Ebay;
- run;
- /*Add column of 1/T=orig_d*/
- data my_Ebay;
- set my_Ebay;
- orig_d=1/Dur__Months;
- k=_N_;
- fact_k=fact(k);
- run;
- /*calculate the total orig d*/
- proc sql;
- select sum(orig_d)/count(*) into: final_d
- from my_Ebay;
- quit;
- %put &final_d.;
- /*test count*/
- proc sql;
- select count(*) from my_Ebay;
- quit;
- /*calculate p*/
- data my_Ebay;
- set my_Ebay;
- p=exp(-&final_d.)*(&final_d.*k)/fact_k;
- run;
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Listed Quantity | 319 | 600 | 900 | 1200 | 1500 | 1800 | 2100 |
---|---|---|---|---|---|---|---|
Lambda (λ) | 68.65 | 129.14 | 193.70 | 258.27 | 322.84 | 387.41 | 451.97 |
Maximum expected gross profit | USD 5798 | USD 11,633 | USD 18,045 | USD 24,559 | USD 31,142 | USD 37,775 | USD 44,444 |
Median Split Category | Gross Profit | Item Cost | Weighted Profit (per Item) |
---|---|---|---|
High profit, sold fast (HF) | 70.37% | 50.62% | USD 104.85 |
High profit, sold slow (HS) | 1.23% | 1.23% | USD 22.43 |
Low profit, sold fast (LF) | 28.40% | 48.15% | USD 5.93 |
Low profit, sold slow (LS) | 0.00% | 0.00% | USD 0.00 |
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Hu, X.; Zak, P.J. A Procedure to Set Prices and Select Inventory in Thinly Traded Markets Using Data from eBay. J. Risk Financial Manag. 2022, 15, 297. https://doi.org/10.3390/jrfm15070297
Hu X, Zak PJ. A Procedure to Set Prices and Select Inventory in Thinly Traded Markets Using Data from eBay. Journal of Risk and Financial Management. 2022; 15(7):297. https://doi.org/10.3390/jrfm15070297
Chicago/Turabian StyleHu, Xinbo, and Paul J. Zak. 2022. "A Procedure to Set Prices and Select Inventory in Thinly Traded Markets Using Data from eBay" Journal of Risk and Financial Management 15, no. 7: 297. https://doi.org/10.3390/jrfm15070297