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Information services and omnichannel retailing strategy choices of e-commerce platforms with supplier competition

Author

Listed:
  • Fengying Hu

    (Hubei University)

  • Zhenglong Zhou

    (Central China Normal University)

Abstract

The integration of offline channels and online channels has become a direction for the transformation and development of many e-commerce platforms, so omnichannel retailing has become an important strategy. Thus, we build a theoretical model between a platform and two suppliers to study the platform’s optimal information service and omnichannel strategy choice (under a reselling agreement vs. under a hybrid retailing agreement). The results show that when the product competition intensity is low, an omnichannel strategy under a reselling agreement is conducive to increasing the offline information service level and profits of the platform. When the product competition intensity is high, the omnichannel strategy under a hybrid retailing agreement is the optimal choice, and the platform can set a smaller referral fee to transfer part of the profit to suppliers to encourage suppliers to enter omnichannel retailing. Furthermore, the platform can improve the information service level using new retailing technology, which can create a higher product showrooming effect. Finally, we introduce the case of China’s household appliances to verify the effectiveness of our research and suggest that the platform establishes experience stores that can weaken the competitive relationship between suppliers and the platform to achieve a win–win strategy.

Suggested Citation

  • Fengying Hu & Zhenglong Zhou, 2023. "Information services and omnichannel retailing strategy choices of e-commerce platforms with supplier competition," Electronic Commerce Research, Springer, vol. 23(4), pages 2647-2689, December.
    • Handle: RePEc:spr:elcore:v:23:y:2023:i:4:d:10.1007_s10660-022-09557-5
    DOI: 10.1007/s10660-022-09557-5
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    References listed on IDEAS

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