Search Results (58)

This research investigates the strategic interplay between pricing, delivery promises, and handling strategies for service-level returns—products returned by consumers due to operational issues like late delivery rather than product defects. In a vertical decentralized supply chain with a manufacturer and an e-tailer, a shorter promised delivery lead time (PDL) attracts more customers but also increases the risk of late delivery, making products more return-prone. Modeling the return rate as an endogenous variable dependent on the e-tailer’s PDL decision, we develop a Manufacturer-Stackelberg (MS) game-theoretic model to examine whether service-level returns should be handled by the manufacturer (Buy-Back strategy) or the e-tailer (No-Returns strategy). The results suggest that the optimal handling strategy depends on the e-tailer’s reselling ratio—a measure of its efficiency in extracting value from returns. A win-win situation is achieved when the reselling ratio is smaller than a threshold, as the manufacturer’s decision to buy back these returns also benefits the e-tailer. Surprisingly, when the manufacturer leaves the e-tailer to handle FFRs, a higher reselling ratio is not necessarily profitable for the e-tailer. Extending the analysis to a retailer-Stackelberg (RS) scenario reveals that the supply chain’s power structure is a fundamental determinant of the optimal returns handling strategy, shifting the equilibrium from a counterintuitive, power-distorted outcome in a MS system to an intuitive, profit-driven one in a RS system. Full article

Omni-channel retailers arise to address the deficiencies in consumers’ online shopping experiences; the resulting competition between such retailers and traditional online platforms presents substantial challenges for green product manufacturers. A three-level game model is established to examine a manufacturer’s green contract design (product pricing and greenness determination) and mode selection under the competition between an online platform and a new retailer providing omni-channel services to end customers. The manufacturer can select between two modes: supplying a green product to the online platform and new retailer (mode RR) or selling it directly through the online platform and reselling it to the new retailer (mode PR). Our findings indicate that, first, even if the relationship between the manufacturer and new retailer has changed from cooperation under mode RR to competition and cooperation under mode PR, the manufacturer still favors two-channel sales over single-channel sales and affects consumer channel choices to adjust market shares through mode selection. Second, regarding the impacts of the key parameters on the manufacturer, downstream e-commerce platform retailers and environment are intricate and nuanced. While raising the omni-channel service level enhances profitability in the new retailer across both modes, its environmental impacts differ significantly between them. Additionally, it can harm the online platform in some cases. Nevertheless, when the parameters fall within suitable ranges, the manufacturer and both downstream retailers have a consistent preference for improved omni-channel services under both modes. Finally, there is a significant divergence in mode preferences among the manufacturer and both downstream platform retailers. Due to the first-mover advantage, the manufacturer opts for mode RR over mode PR in most cases. Notably, within a specific range of parameters, they consistently prefer mode RR, which also proves beneficial for the environment, resulting in a Pareto optimal outcome. This proposes a concrete cooperation mechanism among the manufacturer, retailers, and consumers from quantitative insights, which can promote green products to achieve the objective of low-carbon environmental protection. Full article

As environmental issues become increasingly prominent, the sustainable practices of enterprises, especially measures at the product level, have garnered widespread attention from scholars. Although numerous studies have explored suppliers’ sales strategies for green products, they often overlook the scenario where suppliers simultaneously sell both green and non-green products.This study focuses on the sales mode selection strategies of suppliers when providing green and non-green products through e-commerce platforms. Utilizing a game model, we analyze the equilibrium strategies between suppliers and e-commerce platforms, and conduct sensitivity analyses to evaluate the impact of key parameters on decision-making. The results reveal that there are significant differences in the strategic preferences of suppliers and e-commerce platforms. However, when commission rates are moderate and green products incur high production costs, these preferences tend to align, leading to Pareto optimal outcomes. Additionally, our findings demonstrate that adopting differentiated sales modes for the two product types can effectively mitigate the problem of double marginalization, thereby enhancing the efficiencyof supply chains. These insights provide valuable guidance for e-commerce platform managers and suppliers in making decisions on sales models for managing multiple types of products. Full article

Probabilistic selling is a retail strategy in which consumers purchase products without knowing their exact identities until after purchase, with various applications like gaming and retail; a real-world practice involves retailers may unsealing and reselling goods to meet consumer demand for transparency. This disrupts manufacturers’ strategies designed to adopt the uncertainty for segmentation and pricing. Using a vertically differentiated supply chain model structured as a Stackelberg game framework, this study examines how transparency from retailer unsealing affects profitability, consumer surplus, and market dynamics. Key findings include the following: (1) Unsealing increases retailer profits by aligning pricing with heterogeneous consumer willingness to pay. (2) Introducing a manufacturer’s direct channel reduces unsealing profits via price competition. (3) Unsealing creates conflicts between manufacturers’ design goals and retailers’ profit-driven incentives. By applying a Stackelberg game framework to model unsealing as a downstream transparency decision, this work advances the probabilistic selling literature by offering a structured approach to analyzing how downstream transparency and retailer strategies reshape probabilistic selling and supply chain dynamics. It highlights the need for manufacturers to balance segmentation, pricing, and channel control, offering insights into mitigating conflicts between design intentions and downstream market behaviors. Full article

This study examines how a low-carbon manufacturer strategically adopts blockchain technology and selects sales modes with a dual-purpose e-commerce platform that focuses on both profit and consumer surplus. We develop six game-theoretic models by combining three sales modes (agency, reselling, and dual modes) with two blockchain scenarios (adoption vs. non-adoption). Using backward induction, we derive equilibrium strategies for supply chain members and analyze the impacts of key parameters. Building on these analyses, we further investigate the joint decision-making of blockchain adoption and sales mode selection, exploring how the platform’s consumer surplus concern influences manufacturer decisions, and evaluating the economic value created by blockchain under alternative sales modes, ultimately leading to three key findings: (1) The agency mode is generally preferred in most cases, especially when the platform has a moderate level of concern for consumer surplus. Blockchain adoption is only recommended when its unit operational cost is below certain thresholds, and it can significantly impact the choice between agency and dual modes based on the platform’s consumer surplus concern. (2) Platform’s degree of consumer surplus concern exerts a negligible effect on manufacturer’s sales mode selection without blockchain, but it becomes crucial and can trigger a shift to the dual mode when blockchain is adopted. (3) Blockchain generates the greatest economic value for the manufacturer under the dual mode, regardless of cost thresholds. For platforms, the optimal strategy depends on blockchain’s unit operational cost, with the reselling mode being optimal for low cost and the agency mode preferred for higher cost. Full article

With the rapid development of the digital economy and the evolving shopping preferences of consumers, e-commerce platforms have been enhancing their competitiveness by launching private label brands and optimizing their sales channel strategies. This study focuses on an online sales system comprising a strong brand and an e-commerce platform. Four game modes were constructed: agency selling only (NN), agency selling combined with reselling (NS), agency selling combined with private labels (IN), and reselling combined with agency selling under the introduction of private labels (IS). Under the coupon promotion strategy, this study focused on the introduction strategy for private labels (PLs) and the selection strategy for platform sales modes. Our research produced the following findings: (1) Regardless of whether the platform introduces its own brand, adopting a reselling mode can significantly enhance the profits of both the brand owner and platform. (2) Irrespective of whether the reselling mode is implemented, the platform’s profits are always increased when introducing its own brand. (3) When the coupon redemption rate is higher, the brand owner achieves greater profitability in the absence of PL introduction. Conversely, when the coupon redemption rate is low, an increase in the commission rate leads to reduced profit margins for the brand owner due to competition from a private label. (4) When the coupon redemption and commission rate are both high, the coupon face value without a PL is larger. Otherwise, when these rates are both low, the coupon face value is higher under the introduction of a PL. This study offers a theoretical foundation and decision-making support for e-commerce platforms to optimize sales mode selection, introduce private-label brands, and develop coupon strategies. Full article

This article is motivated by the challenge of the increasing power of e-commerce compared to traditional commerce. An online retail platform can provide both agency selling and reselling schemes, while the supplier can adopt one scheme or both. For a case study of Gree, we formulate four cases based on the channel structures to investigate the adoption strategies of platform schemes and their impacts on a traditional distributor, Jinghai. Firstly, we discuss the impacts of the slotting fee, the revenue-sharing proportion earned by the supplier, and the market competition intensity on the profits and decisions of members. A more intense market and a higher revenue-sharing proportion for the supplier will lead to a lower price in the traditional distribution channel. Secondly, we study how a supplier should employ the platform schemes with a traditional distributor. Particularly, the extremely low extra market demand driven by the online platform and the sufficiently low market intensity may not lead to a motivation for suppliers to adopt the agency scheme. Finally, Gree’s introduction of an agency scheme does not always spell disaster for traditional distributors, and it may not be such a bad thing for Jinghai to agree to Gree adding the online reselling scheme. Full article

Background: Optimizing reverse chains is more difficult than forward linear supply chains. Careful consideration should be given to recovery strategies to optimize product reuse as well as recycling. Methods: Using a 450-product dataset from the Melbourne area collection project and literature sources, we applied a calculation model with four recovery options. It modeled different return quality levels, three market segments, cost structures, buy-back and resell prices, carbon emissions, and the percentage of reuse and recycling for the four Rs (volume-based). We compared fifteen recovery strategies with one, two, three, or four recovery options and carried out sensitivity analyses to explore the impact of return volumes and quality, recovery cost, and market prices. Results: The main findings are as follows: (i) Product reuse has a lot of potential, but currently only for premium brands and requires the returned products to be of good quality. (ii) Environmental footprints are reduced in almost all scenarios, so economic viability is the main bottleneck in applying (more) reuse. (iii) Eco-design and circular business models may pave the way to reduce costs and increase market acceptance. Conclusions: We conclude with three suggested strategies for promoting reuse of electronic equipment: 1. Collecting discarded products earlier; 2. Incentivizing modular product design; 3. Greater consistency in asset management and refurbishment operations. Full article

Largely motivated by the industrial practice in which a platform giant will encroach online retailing by introducing private label (PL) products, this paper aims to investigate the optimal introduction decision for a platform and identify the best sales format, between the reselling format and the agency format, for a manufacturer in an e-commerce platform supply chain. In response to these two sales formats, this paper characterizes and proposes three different PL product introduction strategies, including No Introduction, Partial Introduction, and Full Introduction. By developing a game-theoretic framework and applying the Karush–Kuhn–Tucker optimality, this paper examines the optimal PL product introduction decision and the best sales format. With analytical studies and numerical experiments, several significant implications are derived in this paper. For example, it is first found that the consumer preference for the platform and the quality of the PL products are two key factors influencing the platform’s PL product introduction, with associated effects differing notably. Secondly, improving the PL products’ quality does not necessarily lead to an increased profit for the platform. It will also not lead to a loss in profit for the manufacturer. Lastly, the best sales formats for the manufacturer are significantly influenced by the PL products’ introduction strategy chosen by the platform. Full article

Under California’s Clean Miles Standard (or SB 1014), transportation network companies (TNCs) must transition to zero-emission vehicles by 2030. One significant hurdle for TNC drivers is the electric vehicle (EV) acquisition and operating costs versus an internal combustion engine (ICE) vehicle. This study therefore evaluates net TNC driving earnings through EV acquisition pathways—financing, leasing, and renting—along with EV-favoring policy options. Key metrics assessed include (1) total TNC income when considering service fees, fuel costs, monthly vehicle payments, etc., and (2) the time EVs take to reach parity with their ICE counterparts. Monthly comparisons illustrate the earning differentials between new/used EVs and gas-powered vehicles. Our analyses employing TNC data from 2019 to 2020 suggest that EV leasing is optimal for short-term low-mileage drivers; EV financing is more feasible for those planning to drive for TNCs for over two years; EV rentals are only optimal for higher mileages, and they are not an economical pathway for longer-term driving. Sensitivity analyses further indicate that EV charging price discounts are effective in shortening the time for EVs to reach cost parity over ICEs. Drivers may experience a total asset gain when reselling their TNC vehicle after two to three years. Full article

Online retail platforms offer encroachment opportunities for suppliers to directly sell products to consumers on the online market. However, how to select appropriate encroachment channels poses a significant challenge for suppliers. To solve this problem, we take one supplier selling products through an indirect reselling channel on a third-party online retail platform (TORP) as the base model, and further consider that the supplier can choose TORP agency selling, the owned channel, or both to encroach onto the online market. We hereby establish game-theoretical models to analyze the optimal strategy of supplier encroachment, the TORP preference, and the equilibrium channel strategy. The findings show that the supplier is always willing to encroach onto the online market through its own channel. Additionally, when the commission rate is low, the supplier will further encroach via the TORP agency selling channel. The TORP provides the agency selling channel for the supplier only when the commission rate exceeds a certain threshold. If the channel competition is not very fierce (the competition intensity is lower than 0.852) and the commission rate is moderate, dual-channel encroachment is the equilibrium channel strategy; otherwise, supplier-owned-channel encroachment is the equilibrium strategy. We extend our main models by incorporating supplier blockchain adoption and the cost differences between both parties to enhance practical applicability. Full article

Numerous fashion brands, such as Patagonia, H&M, and Levi’s, offer take-back programs, encouraging customers to return used clothing for monetary incentives so that the brands can resell, recycle, or donate them. Drawing on social exchange theory, this study suggests that consumers are more likely to participate in a loyal brand’s take-back program as they own more items from loyal brands due to repeated purchases. Loyal consumers, viewing this as part of an ongoing relationship with the brand, may participate because they perceive greater benefits than non-loyal consumers. In turn, brands benefit by keeping loyal consumers engaged through product collection and future purchases using coupons. This study examines how brand loyalty affects the perceived benefits of take-back programs, shaping participation intention. It also explores how environmental concern moderates the mediating effect of perceived benefits between brand loyalty and participation intention. Data were collected from 467 U.S. consumers via an online survey. Results revealed that the more loyal consumers were, the greater they perceived economic, environmental, and convenience benefits to be, increasing their intention to participate. Economic benefits were more effective for consumers with low levels of environmental concern, while environmental benefits were more influential for those with high levels of environmental concern. Full article

Textile products comprise approximately 10% of the total global carbon footprint. Standard practice is to discard apparel textile waste after use, which pollutes the environment. There are professional collectors, charity organizations, and municipalities that collect used apparel and either resell or donate them. Non-reusable apparel is partially recycled, mainly through incineration or processed as solid waste during landfilling. More than 60 million tons of textiles are burnt or disposed of in landfills annually. The main aim of this paper is to model the heterogeneous kinetics of hydrolysis of multicomponent textile waste containing polyester (polyethylene terephthalate (PET) fibers), by using water without special catalytic agents or hazardous and costly chemicals. This study aims to contribute to the use of closed-loop technology in this field, which will reduce the associated negative environmental impact. The polyester part of waste is depolymerized into primary materials, namely monomers and intermediates. Reaction kinetic models are developed for two mechanisms: (i) the surface reaction rate controlling the hydrolysis and (ii) the penetrant in terms of the solid phase rate controlling the hydrolysis. A suitable kinetic model for mono- and multicomponent fibrous blends hydrolyzed in neutral and acidic conditions is chosen by using a regression approach. This approach can also be useful for the separation of cotton/polyester or wool/polyester blends in textile waste using the acid hydrolysis reaction, as well as the application of high pressure and the neutral hydrolysis of polyester to recover primary monomeric constituents. Full article

Nowadays, some of the most expensive real estate is not “real” at all. Several investors are purchasing land in the virtual world of the Metaverse. To be more accurate in the wording, they are buying “meta-estates”. This work is dedicated to opening a debate about this emerging research field within the real estate discipline. It begins by discussing market segmentation, ownership, and pricing by comparing the traditional real estate market with the virtual estate market. Furthermore, this study involved interviews with six seasoned Metaverse land investors who participated in two Analytic Hierarchy Processes (AHPs). The first AHP ranked 14 investment typologies, while the second focused on ranking and discussing the most important characteristics of meta-estates that influence the formation of prices. As a result, the most appealing investments identified were day-trading, virtual land trading (buying to resell), and virtual land development (transforming and reselling). The primary characteristics of meta-estates considered by investors include the platform (e.g., Earth 2, Sandbox), the location within the platform (proximity to famous neighbours), and the architectural design of the buildings (designed by renowned architects). It is evident that the Metaverse represents a new frontier for land investors, and the primary aim of this study was to encourage other researchers to explore and investigate this evolving field. Full article

As the e-commerce landscape diversifies, suppliers are faced with the critical decision of how to effectively launch their products through e-commerce channels with varying business models. This study aims to explore the strategic considerations for a supplier launching products through two distinct e-commerce channels: one based on a direct sale model and the other on a reselling model. It builds a theoretical model to examine the supplier’s decision-making across three strategic options: a simultaneous launch through both channels, a sequential launch starting with the direct sale model followed by the reselling model, and vice versa. The equilibria of those options are derived through game analysis and further compared. The results reveal that for suppliers under a non-alliance pricing contract, a simultaneous product launch across both channels is the most advantageous approach. Conversely, in scenarios where an alliance pricing contract is in place, the optimal strategy shifts towards a sequential launch. The decision of which channel to ally with—whether the direct sale or the reselling model—hinges critically on the difference in service efficiency and the intensity of competition between the channels. This nuanced analysis highlights the importance of strategic flexibility and alignment with channel dynamics in maximizing product launch success in the evolving e-commerce environment. Full article