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Should a retailer opt for an advance selling strategy? Perspectives from a capital-constrained supply chain

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  • Wang, Yajing
  • Li, Jian
  • Zhu, Shichao
  • Wang, Shouyang
  • Cheng, T.C.E.

Abstract

Problem Definition and Methodology: The practice of some enterprises using Internet platforms/e-commerce platforms to raise funds for purchasing/producing products through the implementation of advance selling has received widespread attention. Consumer-oriented advance selling financing has emerged as a new financing tool. However, it is evident that not all capital-constrained retailers adopt advance selling financing because of possible influences from upstream producers. Accordingly, we apply a game-theoretic approach to discern how advance selling impacts all stakeholders and the overall performance. The producer first charges the purchasing price, and subsequent inventory financing decisions lie with the retailer, who may opt for trade credit alone (TC), advance selling alone (AS), or a combination of both (AT), assuming the producer offers delayed payments to its downstream.

Suggested Citation

  • Wang, Yajing & Li, Jian & Zhu, Shichao & Wang, Shouyang & Cheng, T.C.E., 2026. "Should a retailer opt for an advance selling strategy? Perspectives from a capital-constrained supply chain," Omega, Elsevier, vol. 138(C).
    • Handle: RePEc:eee:jomega:v:138:y:2026:i:c:s0305048325001069
    DOI: 10.1016/j.omega.2025.103380
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