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Payment methods and sustainable inventory management in online business: a comparative analysis

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  • Manoj Kumar Sharma
  • Shubham Bhushan
  • Pragati Bhardwaj

Abstract

In the dynamic world of online business, the choice of payment methods plays a crucial role in shaping how inventory is managed. Firstly, cash on delivery are examined for their immediate liquidity benefits, which help in quickly turning over inventory and managing cash flow efficiently. Secondly, advance payments are analysed for their ability to offer upfront capital, thus reducing the need for extensive inventory financing. Finally, credit payments (buy-now-pay-later and EMI options) are assessed for their potential to boost sales volume and consumer purchasing power. In this study employs a demand-sensitive pricing approach and explores investments in preservation technology. The decision-making process incorporates considerations of carbon emission policies and investment of preservation technology. The primary focus is on a comparative analysis of payment schemes in the context of online inventory management. Theoretical insights are validated through numerical examples and sensitivity analyses to derive practical managerial implications.

Suggested Citation

  • Manoj Kumar Sharma & Shubham Bhushan & Pragati Bhardwaj, 2025. "Payment methods and sustainable inventory management in online business: a comparative analysis," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 24(1), pages 25-54.
    • Handle: RePEc:ids:ijpman:v:24:y:2025:i:1:p:25-54
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