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| Offline Channel Expansion Strategy for E-Commerce Platform with Customer Returns |
| XIE JUN |
| 1. Chongqing University, Chongqing, China; 2. Shihezi University, Shihezi, Xinjiang, China |
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Abstract This study analyzes the e-commerce platform’s offline channel strategy and the value of the offline channel expansion, from the perspective of consumer returns. The expected utility function of consumers in different channels and two-stage dynamic game model under asymmetric context are established respectively. Through solving these models, the optimal decision, product demand and profits of both sides of the supply chain are obtained. Based on these, the impact of offline channel expansion on the supply chain equilibrium, consumer behavior and consumer welfare is analyzed. The results show that: The e-commerce platform has an incentive to expand offline channel from the perspective of increasing market share and reducing product return rates; However, the e-commerce platform may not be able to make more profits when the e-commerce platform introduces offline channel, which depends on the cost of offline channel.The expansion of offline channel by the e-commerce platform will lead to channel migration behaviors for consumers. In addition, it will improve consumer welfare and the profitability of the manufacturer and supply chain systems under asymmetric information.
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Received: 30 August 2022
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