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“Product + logistics” bundling sale and co-delivery in cross-border e-commerce

Author

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  • Baozhuang Niu

    (South China University of Technology)

  • Jingmai Wang

    (South China University of Technology)

  • Carman K. M. Lee

    (The Hong Kong Polytechnic University)

  • Lei Chen

    (South China University of Technology)

Abstract

When customers purchase products via cross-border e-commerce, they care about both the product quality and the logistics service quality. Actually, retailers are selling “product + logistics” to customers, although their contracted logistics service provider (LSP) might not be preferred by customers. In practice, it is observed that a retailer selling high-quality products tends to contract with multiple LSPs to ensure higher customer volumes and the overall high quality of “product + logistics”. However, interestingly, we find that the LSP’s profits might be negatively affected by serving two competing retailers, and preferences of the LSP and the retailer selling high-quality products through logistical cooperation result in two “prisoner’s dilemma” regions. We also identify the size of the system’s profit pie and the allocation rules among the competing LSPs and retailers. We show that it is possible to observe competing retailers’ co-delivery, which benefits both the LSP and the retailer selling high-quality products.

Suggested Citation

  • Baozhuang Niu & Jingmai Wang & Carman K. M. Lee & Lei Chen, 2019. "“Product + logistics” bundling sale and co-delivery in cross-border e-commerce," Electronic Commerce Research, Springer, vol. 19(4), pages 915-941, December.
    • Handle: RePEc:spr:elcore:v:19:y:2019:i:4:d:10.1007_s10660-019-09379-y
    DOI: 10.1007/s10660-019-09379-y
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    Cited by:

    1. Ren, Shuyun & Choi, Tsan-Ming & Lee, Ka-Man & Lin, Lei, 2020. "Intelligent service capacity allocation for cross-border-E-commerce related third-party-forwarding logistics operations: A deep learning approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 134(C).
    2. Chuanmin Mi & Yijing Wang & Lin Xiao, 2021. "Prediction on transaction amounts of China’s CBEC with improved GM (1, 1) models based on the principle of new information priority," Electronic Commerce Research, Springer, vol. 21(1), pages 125-146, March.
    3. Amit Gayer & Avishay Aiche & Eli Gimmon, 2022. "Online sequential bundling: profit analysis and practice," Electronic Commerce Research, Springer, vol. 22(4), pages 1351-1375, December.

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