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Impacts of logistics models and freight subsidy on the possibility of consumers using cross-border e-commerce platform

Author

Listed:
  • Yongzhong Wu
  • Zhijie Zhu
  • Yan Li

Abstract

The cross-border e-commerce platform led by Shopee has adopted two logistics models, overseas warehouse and cross-border direct mail, and implemented a freight subsidy policy to increase users' purchase intention, but the large amount of freight subsidy has also caused the company to lose money year after year. Based on the above background, this paper explores the impact of logistics models and freight subsidies on the demand of bilateral cross-border e-merchants by using Shopee, a representative company of China-Southeast Asia cross-border e-merchants, as the research object. On this basis, the model is used to calculate user demand in two logistics modes and further compare the probability of user purchase choice in two typical regions under different logistics modes. Finally, the changes of e-commerce demand under the platform as a whole and different logistics modes are explored when the freight subsidy strength is retreated through the introduction of freight subsidy strength.

Suggested Citation

  • Yongzhong Wu & Zhijie Zhu & Yan Li, 2024. "Impacts of logistics models and freight subsidy on the possibility of consumers using cross-border e-commerce platform," International Journal of Industrial and Systems Engineering, Inderscience Enterprises Ltd, vol. 48(3), pages 419-439.
    • Handle: RePEc:ids:ijisen:v:48:y:2024:i:3:p:419-439
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