IDEAS home Printed from https://ideas.repec.org/a/spr/elcore/v24y2024i4d10.1007_s10660-022-09613-0.html
   My bibliography  Save this article

Share or not share: the optimal logistics service strategy in a dual-channel e-commerce supply chain

Author

Listed:
  • Xin Guo

    (Shanghai Lixin University of Accounting and Finance)

  • Kai Gao

    (Shanghai University of Engineering Science)

  • Shanshan Wang

    (Shanghai University of Engineering Science)

Abstract

In practice, many large e-tailers share their logistics service with others, which makes a new trend of logistics service sharing (LSS) emerge. To explore the effects of LSS on firms in the dual-channel supply chain, we propose an analytical model consisting of a manufacturer and an e-tailer and further study the effects of LSS on firms’ decisions and profits. Our results show that the effects of LSS depend on the manufacturer’s logistics service disadvantage and the logistics service cost difference between the manufacturer and e-tailer. Surprisingly, we find that the manufacturer will be worse off from LSS when its logistics disadvantage is sufficiently large due to the loss of wholesale profit. However, the e-tailer can benefit from LSS when the manufacturer’s logistics service disadvantage is relatively small, or the manufacturer’s logistics service disadvantage is moderate but the logistics service cost difference is small. Moreover, such sharing can achieve a win–win situation only when the manufacturer’s logistics service disadvantage is extremely small and the logistics service cost difference is large. Finally, from the perspective of maximizing the performance of the supply chain, we explore the optimal logistic service sharing strategy, and further design a contract to encourage all supply chain members to join such sharing.

Suggested Citation

  • Xin Guo & Kai Gao & Shanshan Wang, 2024. "Share or not share: the optimal logistics service strategy in a dual-channel e-commerce supply chain," Electronic Commerce Research, Springer, vol. 24(4), pages 2755-2801, December.
    • Handle: RePEc:spr:elcore:v:24:y:2024:i:4:d:10.1007_s10660-022-09613-0
    DOI: 10.1007/s10660-022-09613-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10660-022-09613-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10660-022-09613-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Xiao, Tiaojun & (Junmin) Shi, Jim, 2016. "Pricing and supply priority in a dual-channel supply chain," European Journal of Operational Research, Elsevier, vol. 254(3), pages 813-823.
    2. Hu, Yihong & Qu, Shengnan & Li, Guo & Sethi, Suresh P., 2021. "Power structure and channel integration strategy for online retailers," European Journal of Operational Research, Elsevier, vol. 294(3), pages 951-964.
    3. Xiao, Tiaojun & Choi, Tsan-Ming & Cheng, T.C.E., 2014. "Product variety and channel structure strategy for a retailer-Stackelberg supply chain," European Journal of Operational Research, Elsevier, vol. 233(1), pages 114-124.
    4. Chen, Jing & Zhang, Hui & Sun, Ying, 2012. "Implementing coordination contracts in a manufacturer Stackelberg dual-channel supply chain," Omega, Elsevier, vol. 40(5), pages 571-583.
    5. Li, Guo & Li, Lin & Sethi, Suresh P. & Guan, Xu, 2019. "Return strategy and pricing in a dual-channel supply chain," International Journal of Production Economics, Elsevier, vol. 215(C), pages 153-164.
    6. Ganesh Iyer, 1998. "Coordinating Channels Under Price and Nonprice Competition," Marketing Science, INFORMS, vol. 17(4), pages 338-355.
    7. 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.
    8. Zhang, Xuefeng & Li, Guo & Liu, Mengqi & Sethi, Suresh P., 2021. "Online platform service investment: A bane or a boon for supplier encroachment," International Journal of Production Economics, Elsevier, vol. 235(C).
    9. Lin Tian & Baojun Jiang, 2018. "Effects of Consumer†to†Consumer Product Sharing on Distribution Channel," Production and Operations Management, Production and Operations Management Society, vol. 27(2), pages 350-367, February.
    10. Albert Y. Ha & Lode Li & Shu-Ming Ng, 2003. "Price and Delivery Logistics Competition in a Supply Chain," Management Science, INFORMS, vol. 49(9), pages 1139-1153, September.
    11. Kay-Yut Chen & Murat Kaya & Özalp Özer, 2008. "Dual Sales Channel Management with Service Competition," Manufacturing & Service Operations Management, INFORMS, vol. 10(4), pages 654-675, June.
    12. Bo Yan & Zhuo Chen & Xinni Wang & Zijie Jin, 2020. "Influence of logistic service level on multichannel decision of a two-echelon supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 58(11), pages 3304-3329, June.
    13. Bin Dai & Yu Nu, 2020. "Pricing and capacity allocation strategies: Implications for manufacturers with product sharing," Naval Research Logistics (NRL), John Wiley & Sons, vol. 67(3), pages 201-222, April.
    14. Wang, Xuan & Ng, Chi To & Dong, Ciwei, 2020. "Implications of peer-to-peer product sharing when the selling firm joins the sharing market," International Journal of Production Economics, Elsevier, vol. 219(C), pages 138-151.
    15. Qin, Xuelian & Liu, Zhixue & Tian, Lin, 2021. "The optimal combination between selling mode and logistics service strategy in an e-commerce market," European Journal of Operational Research, Elsevier, vol. 289(2), pages 639-651.
    16. Niu, Baozhuang & Xie, Fengfeng & Chen, Lei & Xu, Xin, 2020. "Join logistics sharing alliance or not? Incentive analysis of competing E-commerce firms with promised-delivery-time," International Journal of Production Economics, Elsevier, vol. 224(C).
    17. Guo Li & Hong Zheng & Mengqi Liu, 2020. "Reselling or drop shipping: Strategic analysis of E-commerce dual-channel structures," Electronic Commerce Research, Springer, vol. 20(3), pages 475-508, September.
    18. Wei-yu Kevin Chiang & Dilip Chhajed & James D. Hess, 2003. "Direct Marketing, Indirect Profits: A Strategic Analysis of Dual-Channel Supply-Chain Design," Management Science, INFORMS, vol. 49(1), pages 1-20, January.
    19. Bin Dan & Shuguang Zhang & Maosen Zhou, 2018. "Strategies for warranty service in a dual-channel supply chain with value-added service competition," International Journal of Production Research, Taylor & Francis Journals, vol. 56(17), pages 5677-5699, September.
    20. Ding, Qing & Dong, Ciwei & Pan, Zhicong, 2016. "A hierarchical pricing decision process on a dual-channel problem with one manufacturer and one retailer," International Journal of Production Economics, Elsevier, vol. 175(C), pages 197-212.
    21. Wu, Qing & Mu, Yinping & Feng, Yi, 2015. "Coordinating contracts for fresh product outsourcing logistics channels with power structures," International Journal of Production Economics, Elsevier, vol. 160(C), pages 94-105.
    22. Chen, Bintong & Chen, Jing, 2017. "When to introduce an online channel, and offer money back guarantees and personalized pricing?," European Journal of Operational Research, Elsevier, vol. 257(2), pages 614-624.
    23. Mengdi Zhang & Yufang Fu & Zhiheng Zhao & Saurabh Pratap & George Q. Huang, 2019. "Game theoretic analysis of horizontal carrier coordination with revenue sharing in E-commerce logistics," International Journal of Production Research, Taylor & Francis Journals, vol. 57(5), pages 1524-1551, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zheng, Zhijun & Li, Gang & Cheng, T.C.E & Wu, Feng, 2022. "Offline supplementary service strategies for the online marketplace: Third-party service or marketplace service?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    2. Matsui, Kenji, 2024. "Should competing suppliers with dual-channel supply chains adopt agency selling in an e-commerce platform?," European Journal of Operational Research, Elsevier, vol. 312(2), pages 587-604.
    3. Zhang, Guangming & Dai, Gengxin & Sun, Hao & Zhang, Guitao & Yang, Zhilin, 2020. "Equilibrium in supply chain network with competition and service level between channels considering consumers' channel preferences," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    4. Wei, Jie & Chang, Meijing, 2023. "Are price matching and logistics service enhancement always effective strategies for improving profitability?," European Journal of Operational Research, Elsevier, vol. 307(1), pages 103-115.
    5. Yan, Yingchen & Zhao, Ruiqing & Liu, Zhibing, 2018. "Strategic introduction of the marketplace channel under spillovers from online to offline sales," European Journal of Operational Research, Elsevier, vol. 267(1), pages 65-77.
    6. Zhang, Xuefeng & Li, Guo & Liu, Mengqi & Sethi, Suresh P., 2021. "Online platform service investment: A bane or a boon for supplier encroachment," International Journal of Production Economics, Elsevier, vol. 235(C).
    7. Shao, Xiaofeng, 2021. "Omnichannel retail move in a dual-channel supply chain," European Journal of Operational Research, Elsevier, vol. 294(3), pages 936-950.
    8. Lan, Yongquan & Li, Yanzhi & Papier, Felix, 2018. "Competition and coordination in a three-tier supply chain with differentiated channels," European Journal of Operational Research, Elsevier, vol. 269(3), pages 870-882.
    9. Niu, Baozhuang & Yu, Xinhu & Li, Qiyang & Wang, Yulan, 2023. "Gains and Losses of Key Opinion Leaders’ Product Promotion in Livestream E-commerce," Omega, Elsevier, vol. 117(C).
    10. Wang, Lisha & Chen, Jing & Lu, Yali, 2022. "Manufacturer's channel and logistics strategy in a supply chain," International Journal of Production Economics, Elsevier, vol. 246(C).
    11. Ciwei Dong & Liu Yang & Chi To Ng, 2020. "Quantity Leadership for a Dual-Channel Supply Chain with Retail Service," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 37(02), pages 1-32, March.
    12. Cao, Kaiying & Xu, Yuqiu & Hua, Ye & Choi, Tsan-Ming, 2023. "Supplier or co-optor: Optimal channel and logistics selection problems on retail platforms," European Journal of Operational Research, Elsevier, vol. 311(3), pages 971-988.
    13. Niu, Baozhuang & Ruan, Yiyuan & Xu, Haotao, 2023. "Turn a blind eye? E-tailer's blockchain participation considering upstream competition between copycats and brands," International Journal of Production Economics, Elsevier, vol. 265(C).
    14. Sun, Cuiying & Zhang, Xiong & Zhou, Yong-Wu & Cao, Bin, 2022. "Pricing, financing and channel structure for capital-constrained dual-channel supply chains with product heterogeneity," International Journal of Production Economics, Elsevier, vol. 253(C).
    15. Sun, Libo & Jiao, Xiaoting & Guo, Xiaolong & Yu, Yugang, 2022. "Pricing policies in dual distribution channels: The reference effect of official prices," European Journal of Operational Research, Elsevier, vol. 296(1), pages 146-157.
    16. Pi, Zhenyang & Fang, Weiguo & Perera, Sandun C. & Zhang, Baofeng, 2022. "Enhancing the online buyer perception of consumer experience products in a dual-channel supply chain: A new role of free-riding," International Journal of Production Economics, Elsevier, vol. 253(C).
    17. Guo Li & Hong Zheng & Mengqi Liu, 2020. "Reselling or drop shipping: Strategic analysis of E-commerce dual-channel structures," Electronic Commerce Research, Springer, vol. 20(3), pages 475-508, September.
    18. Peng He & Tong-Yuan Wang & Qi Shang & Jun Zhang & Henry Xu, 2024. "Knowledge mapping of e-commerce supply chain management: a bibliometric analysis," Electronic Commerce Research, Springer, vol. 24(3), pages 1889-1925, September.
    19. Xiao, Tiaojun & (Junmin) Shi, Jim, 2016. "Pricing and supply priority in a dual-channel supply chain," European Journal of Operational Research, Elsevier, vol. 254(3), pages 813-823.
    20. Syed Asif Raza, 2022. "A bibliometric analysis of pricing models in supply chain," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(2), pages 228-251, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:elcore:v:24:y:2024:i:4:d:10.1007_s10660-022-09613-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.