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How much are sellers willing to pay for the features offered by their e-commerce platform?

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  • Lee, Searom
  • Lee, Sang Yup
  • Ryu, Min Ho

Abstract

The success of an e-commerce platform is significantly dependent on the number of sellers and their quality. Thus, it is important to understand the factors that influence a seller's platform choice. This paper investigates features of an e-commerce platform on which sellers place high value when choosing a platform to sell their products, using a conjoint analysis. The data was collected by online survey from 1,796 sellers who are using Naver Smart Store (https://sell.smartstore.naver.com), which is one of the largest e-commerce platform in South Korea. After analyzing the willingness to pay for each combination of functions by separating six functions of Naver Smart Store, it was estimated that the MWTP ranged 3.05 to 4.48 for the main process related functions and 2.61–5.3 for the sub process related functions. MWTP can be considered as a benefits for the sellers since Naver does not require monetary commissions from sellers. This paper also shows that the higher technical understanding of the functions provides the more value to platform to sellers.

Suggested Citation

  • Lee, Searom & Lee, Sang Yup & Ryu, Min Ho, 2019. "How much are sellers willing to pay for the features offered by their e-commerce platform?," Telecommunications Policy, Elsevier, vol. 43(10).
    • Handle: RePEc:eee:telpol:v:43:y:2019:i:10:s0308596118303240
    DOI: 10.1016/j.telpol.2019.101832
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    2. Ryu, Min Ho & Kim, Eunhye & Lee, Sang Yup, 2022. "How offline retailers adopt O2O: Neighboring star shops and their proximity effect," Telecommunications Policy, Elsevier, vol. 46(3).
    3. Kim, Hongbum & Ryu, Min Ho & Lee, Daeho & Kim, Jang Hyun, 2022. "Should a small-sized store have both online and offline channels? An efficiency analysis of the O2O platform strategy," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    4. Marzanna Katarzyna & Witek-Hajduk & Anna Grudecka, 2021. "Multi-Sided Digital Platforms’ Application in SMEs’ Fashion Brands Internet-Enabled International Marketing," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 739-748.

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