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Omni-channel strategies for fresh produce with extra losses in-store

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  • Song, Yang
  • Fan, Tijun
  • Tang, Yuewu
  • Xu, Chang

Abstract

Omni-channel retailing has become increasingly popular among retailers. Thus, whether it is profitable to implement omni-channel operations is regarded as an important question for retailers. In this paper, omni-channel strategies for a fresh produce retailer is investigated in consideration of both fresh produce losses (natural losses and extra losses in-store) and customer types (traditional and online). We analyse the effectiveness of the omni-channel operation by comparing the equilibrium profits and consumer surpluses of three cases: store channel only, buy-online-deliver-to-home (BODH), and buy-online-pick-up-in-store (BOPS). The results show that omni-channel operation will be profitable and more effective when selling fresh produce with a higher loss rate. When the proportion of online customers is higher, omni-channel operation not only improves the retailer’s profits but also increases the consumer surplus. In addition, the BOPS mode can be more profitable than the BODH mode when the cost for home delivery is relatively high, and interestingly, the advantage of the BOPS mode will be smaller with a lower extra loss rate in-store.

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  • Song, Yang & Fan, Tijun & Tang, Yuewu & Xu, Chang, 2021. "Omni-channel strategies for fresh produce with extra losses in-store," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 148(C).
    • Handle: RePEc:eee:transe:v:148:y:2021:i:c:s1366554521000211
    DOI: 10.1016/j.tre.2021.102243
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    5. Muhammad Waqas Iqbal & Muhammad Babar Ramzan & Asif Iqbal Malik, 2022. "Food Preservation within Multi-Echelon Supply Chain Considering Single Setup and Multi-Deliveries of Unequal Lot Size," Sustainability, MDPI, vol. 14(11), pages 1-30, June.
    6. Hu, Xiaojian & Qiu, Ju & Zhao, Ju & Li, Yang, 2023. "Can in-store recommendations for online-substitutive products integrate online and offline channels?," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
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    8. Xiaoxia Chen & Xiaofeng Su & Wenhe Lin & Anxin Xu & Jianhong Chen & Qiujin Zheng, 2022. "The Effect of Omnichannel Integration on Fresh Food Customer Engagement from the Viewpoint of Flow Experience," Sustainability, MDPI, vol. 14(21), pages 1-20, October.

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