IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v305y2023i3p1215-1235.html
   My bibliography  Save this article

Channel mode selection for an e-platform supply chain in the presence of a secondary marketplace

Author

Listed:
  • Zhang, Zhichao
  • Xu, Haiyan
  • Chen, Kebing
  • Zhao, Yingxue
  • Liu, Zhi

Abstract

This paper examines a platform supply chain comprising a manufacturer and an e-platform in the presence of a secondary marketplace. Motivated by the industrial cases, the paper considers the e-platform either a marketplace or a retailing channel. The former is referred as a platform mode and the latter is referred as a wholesale mode. This paper analytically characterizes the optimal operational strategies for the platform supply chain with the two different channel modes. The paper also conducts a comprehensive comparison between the two channel modes, by which an analytical examination is developed to reveal how to select the optimal channel modes and the critical factors affecting this choice in the platform supply chain. In addition, dynamics of the optimal collect-and-resell strategies for the e-platform are characterized, which indicates how the e-platform should implement different collect-and-resell strategies in response to different channel modes selected by the manufacturer.

Suggested Citation

  • Zhang, Zhichao & Xu, Haiyan & Chen, Kebing & Zhao, Yingxue & Liu, Zhi, 2023. "Channel mode selection for an e-platform supply chain in the presence of a secondary marketplace," European Journal of Operational Research, Elsevier, vol. 305(3), pages 1215-1235.
  • Handle: RePEc:eee:ejores:v:305:y:2023:i:3:p:1215-1235
    DOI: 10.1016/j.ejor.2022.06.064
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221722005513
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ejor.2022.06.064?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Anindya Ghose & Michael D. Smith & Rahul Telang, 2006. "Internet Exchanges for Used Books: An Empirical Analysis of Product Cannibalization and Welfare Impact," Information Systems Research, INFORMS, vol. 17(1), pages 3-19, March.
    2. Yuelin Shen & Sean P. Willems & Yue Dai, 2019. "Channel Selection and Contracting in the Presence of a Retail Platform," Production and Operations Management, Production and Operations Management Society, vol. 28(5), pages 1173-1185, May.
    3. Qin, Xuelian & Liu, Zhixue & Tian, Lin, 2021. "The optimal combination between selling mode and logistics service strategy in an e-commerce market," European Journal of Operational Research, Elsevier, vol. 289(2), pages 639-651.
    4. Liu, Huihui & Lei, Ming & Deng, Honghui & Keong Leong, G. & Huang, Tao, 2016. "A dual channel, quality-based price competition model for the WEEE recycling market with government subsidy," Omega, Elsevier, vol. 59(PB), pages 290-302.
    5. Lin Tian & Asoo J. Vakharia & Yinliang (Ricky) Tan & Yifan Xu, 2018. "Marketplace, Reseller, or Hybrid: Strategic Analysis of an Emerging E‐Commerce Model," Production and Operations Management, Production and Operations Management Society, vol. 27(8), pages 1595-1610, August.
    6. Chen, Zhongwei & Fan, Zhi-Ping & Zhao, Xuan, 2021. "Offering return-freight insurance or not: Strategic analysis of an e-seller's decisions," Omega, Elsevier, vol. 103(C).
    7. Shen, Bin & Xu, Xiaoyan & Yuan, Quan, 2020. "Selling secondhand products through an online platform with blockchain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    8. Alessandro Gavazza & Alessandro Lizzeri & Nikita Roketskiy, 2014. "A Quantitative Analysis of the Used-Car Market," American Economic Review, American Economic Association, vol. 104(11), pages 3668-3700, November.
    9. Chen, Cheng-Kang & Ulya, M. Akmalul ', 2019. "Analyses of the reward-penalty mechanism in green closed-loop supply chains with product remanufacturing," International Journal of Production Economics, Elsevier, vol. 210(C), pages 211-223.
    10. Zhi-chao Zhang & Hai-yan Xu & Ke-bing Chen, 2021. "Operational decisions and financing strategies in a capital-constrained closed-loop supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 59(15), pages 4690-4710, August.
    11. Anderson, Simon P. & Ginsburgh, Victor A., 1994. "Price discrimination via second-hand markets," European Economic Review, Elsevier, vol. 38(1), pages 23-44, January.
    12. Xue, Yu & Caliskan-Demirag, Ozgun & Chen, Youhua (Frank) & Yu, Yugang, 2018. "Supporting customers to sell used goods: Profitability and environmental implications," International Journal of Production Economics, Elsevier, vol. 206(C), pages 220-232.
    13. He, Qidong & Wang, Nengmin & Yang, Zhen & He, Zhengwen & Jiang, Bin, 2019. "Competitive collection under channel inconvenience in closed-loop supply chain," European Journal of Operational Research, Elsevier, vol. 275(1), pages 155-166.
    14. Yang, Lei & Hu, Yijuan & Huang, Lijuan, 2020. "Collecting mode selection in a remanufacturing supply chain under cap-and-trade regulation," European Journal of Operational Research, Elsevier, vol. 287(2), pages 480-496.
    15. Choi, Tsan-Ming & Feng, Lipan & Li, Rong, 2020. "Information disclosure structure in supply chains with rental service platforms in the blockchain technology era," International Journal of Production Economics, Elsevier, vol. 221(C).
    16. Xianjun Geng & Yinliang (Ricky) Tan & Lai Wei, 2018. "How Add†on Pricing Interacts with Distribution Contracts," Production and Operations Management, Production and Operations Management Society, vol. 27(4), pages 605-623, April.
    17. Aliakbar Hasani & Seyed Hessameddin Zegordi & Ehsan Nikbakhsh, 2015. "Robust closed-loop global supply chain network design under uncertainty: the case of the medical device industry," International Journal of Production Research, Taylor & Francis Journals, vol. 53(5), pages 1596-1624, March.
    18. Zhang, Zhichao & Xu, Haiyan & Ke, Ginger Y. & Chen, Kebing, 2022. "Selecting online distribution modes for differentiated products in a platform supply chain," International Journal of Production Economics, Elsevier, vol. 244(C).
    19. Zhang, Shichen & Zhang, Jianxiong, 2020. "Agency selling or reselling: E-tailer information sharing with supplier offline entry," European Journal of Operational Research, Elsevier, vol. 280(1), pages 134-151.
    20. Yenipazarli, Arda, 2016. "Managing new and remanufactured products to mitigate environmental damage under emissions regulation," European Journal of Operational Research, Elsevier, vol. 249(1), pages 117-130.
    21. Wei, Yuansheng & Dong, Yuxuan, 2022. "Product distribution strategy in response to the platform retailer's marketplace introduction," European Journal of Operational Research, Elsevier, vol. 303(2), pages 986-996.
    22. Geraldo Ferrer & Jayashankar M. Swaminathan, 2006. "Managing New and Remanufactured Products," Management Science, INFORMS, vol. 52(1), pages 15-26, January.
    23. Xiaolong Guo & Shengming Zheng & Yugang Yu & Fuqiang Zhang, 2021. "Optimal Bundling Strategy for a Retail Platform Under Agency Selling," Production and Operations Management, Production and Operations Management Society, vol. 30(7), pages 2273-2284, July.
    24. Liu, Jian & Mantin, Benny & Song, Xuefeng, 2022. "Rent, sell, and remanufacture: The manufacturer's choice when remanufacturing can be outsourced," European Journal of Operational Research, Elsevier, vol. 303(1), pages 184-200.
    25. Zheng, Wei & Li, Bo & Song, Dongping, 2022. "The optimal green strategies for competitive ocean carriers under potential regulation," European Journal of Operational Research, Elsevier, vol. 303(2), pages 840-856.
    26. Adam Copeland, 2014. "Intertemporal substitution and new car purchases," RAND Journal of Economics, RAND Corporation, vol. 45(3), pages 624-644, September.
    27. Liu, Zhi & Li, Kevin W. & Li, Bang-Yi & Huang, Jun & Tang, Juan, 2019. "Impact of product-design strategies on the operations of a closed-loop supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 124(C), pages 75-91.
    28. Feng, Lipan & Zheng, Xiong & Govindan, Kannan & Xue, Kelei, 2019. "Does the presence of secondary market platform really hurt the firm?," International Journal of Production Economics, Elsevier, vol. 213(C), pages 55-68.
    29. Miao, Zhaowei & Fu, Ke & Xia, Zhiqiang & Wang, Yu, 2017. "Models for closed-loop supply chain with trade-ins," Omega, Elsevier, vol. 66(PB), pages 308-326.
    30. Yushan Hu & Ben G. Li, 2021. "The production economics of economics production," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 30(1), pages 228-255, February.
    31. Albert Y. Ha & Huajiang Luo & Weixin Shang, 2022. "Supplier Encroachment, Information Sharing, and Channel Structure in Online Retail Platforms," Production and Operations Management, Production and Operations Management Society, vol. 31(3), pages 1235-1251, March.
    32. Feng, Lipan & Govindan, Kannan & Li, Chunfa, 2017. "Strategic planning: Design and coordination for dual-recycling channel reverse supply chain considering consumer behavior," European Journal of Operational Research, Elsevier, vol. 260(2), pages 601-612.
    33. Lacourbe, Paul, 2016. "Durable goods leasing in the presence of exporting used products to an international secondary market," European Journal of Operational Research, Elsevier, vol. 250(2), pages 448-456.
    34. He, Qidong & Wang, Nengmin & Browning, Tyson R. & Jiang, Bin, 2022. "Competitive collection with convenience-perceived customers," European Journal of Operational Research, Elsevier, vol. 303(1), pages 239-254.
    35. Vibhanshu Abhishek & Kinshuk Jerath & Z. John Zhang, 2016. "Agency Selling or Reselling? Channel Structures in Electronic Retailing," Management Science, INFORMS, vol. 62(8), pages 2259-2280, August.
    36. Matsui, Kenji, 2022. "Optimal timing of acquisition price announcement for used products in a dual-recycling channel reverse supply chain," European Journal of Operational Research, Elsevier, vol. 300(2), pages 615-632.
    37. Gökçe Esenduran & James A. Hill & In Joon Noh, 2020. "Understanding the Choice of Online Resale Channel for Used Electronics," Production and Operations Management, Production and Operations Management Society, vol. 29(5), pages 1188-1211, May.
    38. Jiawei Chen & Susanna Esteban & Matthew Shum, 2013. "When Do Secondary Markets Harm Firms?," American Economic Review, American Economic Association, vol. 103(7), pages 2911-2934, December.
    39. Choi, Tsan-Ming & Chow, Pui-Sze & Lee, Chang Hwan & Shen, Bin, 2018. "Used intimate apparel collection programs: A game-theoretic analytical study," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 109(C), pages 44-62.
    40. R. Canan Savaskan & Shantanu Bhattacharya & Luk N. Van Wassenhove, 2004. "Closed-Loop Supply Chain Models with Product Remanufacturing," Management Science, INFORMS, vol. 50(2), pages 239-252, February.
    41. Liu, Zhi & Li, Kevin W. & Tang, Juan & Gong, Bengang & Huang, Jun, 2021. "Optimal operations of a closed-loop supply chain under a dual regulation," International Journal of Production Economics, Elsevier, vol. 233(C).
    42. Lan Wang & Gangshu (George) Cai & Andy A. Tsay & Asoo J. Vakharia, 2017. "Design of the Reverse Channel for Remanufacturing: Must Profit-Maximization Harm the Environment?," Production and Operations Management, Production and Operations Management Society, vol. 26(8), pages 1585-1603, August.
    43. Gökçe Esenduran & Atalay Atasu & Luk N. Van Wassenhove, 2019. "Valuable e-waste: Implications for extended producer responsibility," IISE Transactions, Taylor & Francis Journals, vol. 51(4), pages 382-396, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xu, Xiaoping & Guo, Shunan & Cheng, T.C.E. & Du, Pengcheng, 2023. "The choice between the agency and reselling modes considering green technology with the cap-and-trade scheme," International Journal of Production Economics, Elsevier, vol. 260(C).
    2. Pei, Yiying & Li, Min, 2023. "The effects of information on competition on a hybrid retail platform," International Journal of Production Economics, Elsevier, vol. 260(C).
    3. Ayan Chatterjee & Debmallya Chatterjee, 2024. "A Journey of Business Analytics in Improving Supply Chain Performance: A Systematic Review of Literature," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 49(2), pages 337-361, May.
    4. Xia, Liangjie & Li, Kang & Wang, Jun & Xia, Yi & Qin, Juanjuan, 2024. "Carbon emission reduction and precision marketing decisions of a platform supply chain," International Journal of Production Economics, Elsevier, vol. 268(C).
    5. Zhang, Zhichao & Xu, Haiyan & Zhao, Yingxue & Liu, Zhi & Chen, Kebing, 2023. "Extended warranty service provision: A strategic analysis for the E-commerce platform supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 177(C).
    6. Matsui, Kenji, 2024. "Should competing suppliers with dual-channel supply chains adopt agency selling in an e-commerce platform?," European Journal of Operational Research, Elsevier, vol. 312(2), pages 587-604.
    7. Cao, Kaiying & Xu, Yuqiu & Hua, Ye & Choi, Tsan-Ming, 2023. "Supplier or co-optor: Optimal channel and logistics selection problems on retail platforms," European Journal of Operational Research, Elsevier, vol. 311(3), pages 971-988.
    8. He, Peng & Shang, Qi & Chen, Zhen-Song & Mardani, Abbas & Skibniewski, Miroslaw J., 2024. "Short video channel strategy for restaurants in the platform service supply chain," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Zhichao & Xu, Haiyan & Zhao, Yingxue & Liu, Zhi & Chen, Kebing, 2023. "Extended warranty service provision: A strategic analysis for the E-commerce platform supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 177(C).
    2. Wang, Yong & Jiang, Qiong & Guan, Xu & Guan, Xiangyang, 2023. "Recycling channel design and coordination in a reverse supply chain with customer green preference," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    3. Matsui, Kenji, 2024. "Should competing suppliers with dual-channel supply chains adopt agency selling in an e-commerce platform?," European Journal of Operational Research, Elsevier, vol. 312(2), pages 587-604.
    4. Zhou, Xiaoyang & Liu, He & Li, Jialu & Zhang, Kai & Lev, Benjamin, 2023. "Channel strategies when digital platforms emerge: A systematic literature review," Omega, Elsevier, vol. 120(C).
    5. Feng, Lipan & Zheng, Xiong & Govindan, Kannan & Xue, Kelei, 2019. "Does the presence of secondary market platform really hurt the firm?," International Journal of Production Economics, Elsevier, vol. 213(C), pages 55-68.
    6. Xu, Xiaoping & Choi, Tsan-Ming, 2021. "Supply chain operations with online platforms under the cap-and-trade regulation: Impacts of using blockchain technology," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    7. Xu, Xiaoping & Yan, Luling & Choi, Tsan-Ming & Cheng, T.C.E., 2023. "When Is It Wise to Use Blockchain for Platform Operations with Remanufacturing?," European Journal of Operational Research, Elsevier, vol. 309(3), pages 1073-1090.
    8. Zhao, Qingli & Fan, Zhi-Ping & Sun, Minghe, 2024. "Sales mode selection and blockchain technology adoption decisions in a platform supply chain," International Journal of Production Economics, Elsevier, vol. 272(C).
    9. Liu, He & Xu, Tianting & Jing, Shuai & Liu, Zhidong & Wang, Shouyang, 2023. "The interplay between logistics strategy and platform’s channel structure design in B2C platform market," European Journal of Operational Research, Elsevier, vol. 310(2), pages 812-833.
    10. Li, Lin & Li, Guo, 2023. "Integrating logistics service or not? The role of platform entry strategy in an online marketplace," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    11. Zhou, Yu & Gao, Xiang & Luo, Suyuan & Xiong, Yu & Ye, Niangyue, 2022. "Anti-Counterfeiting in a retail Platform: A Game-Theoretic approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    12. Zhang, Zhichao & Xu, Haiyan & Ke, Ginger Y. & Chen, Kebing, 2022. "Selecting online distribution modes for differentiated products in a platform supply chain," International Journal of Production Economics, Elsevier, vol. 244(C).
    13. Deqing Ma & Pengcheng Ma & Jinsong Hu, 2024. "The Impact of Blockchain Technology Adoption on an E-Commerce Closed-Loop Supply Chain Considering Consumer Trust," Sustainability, MDPI, vol. 16(4), pages 1-41, February.
    14. Yang, Lei & Hu, Yijuan & Huang, Lijuan, 2020. "Collecting mode selection in a remanufacturing supply chain under cap-and-trade regulation," European Journal of Operational Research, Elsevier, vol. 287(2), pages 480-496.
    15. Hong, Xianpei & Cao, Xinlu & Gong, Yeming & Chen, Wanying, 2021. "Quality information acquisition and disclosure with green manufacturing in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 232(C).
    16. Shen, Bin & Xu, Xiaoyan & Yuan, Quan, 2020. "Selling secondhand products through an online platform with blockchain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    17. Chen, Yujing & Zhong, Yuanguang & Cheng, T.C.E., 2023. "Impacts of the minimum quantity contract on an online retail platform," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1236-1247.
    18. Huang, Song & Gao, Yuqing & Wang, Yun, 2023. "Supply chain channel structure with online platform and dual-purpose firms," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 180(C).
    19. Cao, Kaiying & Xu, Yuqiu & Hua, Ye & Choi, Tsan-Ming, 2023. "Supplier or co-optor: Optimal channel and logistics selection problems on retail platforms," European Journal of Operational Research, Elsevier, vol. 311(3), pages 971-988.
    20. Cheng, Xianghui & Deng, Shiming & Jiang, Xuan & Li, Yanhai, 2023. "Optimal promotion strategies of online marketplaces," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1264-1278.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:305:y:2023:i:3:p:1215-1235. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.