Skip to main content
SpringerLink
Log in

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

  • Published:
Electronic Commerce Research Aims and scope Submit manuscript

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.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6
Fig. 7
Fig. 8
Fig. 9
Fig. 10
Fig. 11
Fig. 12
Fig. 13

Similar content being viewed by others

Notes

  1. http://www.360doc.com/content/19/1129/22/407928_876414930.shtml.

  2. In Sect. 6.3, we will consider the influence of the production cost on the equilibrium results.

  3. In Sect. 6.4, we will consider the influence degree of logistics service level on demand on the equilibrium results.

  4. In Sect. 6.4, we will relax this assumption and consider that c_e≠0.

  5. https://www.sohu.com/a/233566524_343156.

  6. In Sect. 6.2, we will consider the different game sequences that the e-tailer decides \(f\) after the manufacturer decides \(w\) and the manufacturer and e-tailer decide \(w\) and \(f\), simultaneously.

  7. In Sect. 6.1, we will consider that the logistics service fee is exogenous.

References

  1. Bian, Y., Cui, Y., Yan, S., & Han, X. (2021). Optimal strategy of a consumer-consumer sharing platform: Whether to launch its own sharing service? Transportation Research Part E: Logistics and Transportation Review. https://doi.org/10.1016/j.tre.2021.102288

    Article  Google Scholar 

  2. Cao, K., Xu, Y., Wu, Q., Wang, J., & Liu, C. (2021). Optimal channel and logistics service selection strategies in the e-commerce context. Electronic Commerce Research and Applications. https://doi.org/10.1016/j.elerap.2021.101070

    Article  Google Scholar 

  3. Chai, L., Duan, Y., & Huo, J. (2021). Pricing strategies for O2O business model considering service spillover and power structures. International Transactions in Operational Research, 28(4), 1978–2001.

    Article  Google Scholar 

  4. Chen, B., & Chen, J. (2017). When to introduce an online channel, and offer money back guarantees and personalized pricing? European Journal of Operational Research, 257(2), 614–624.

    Article  Google Scholar 

  5. Chiang, W. Y. K., Chhajed, D., & Hess, J. D. (2003). Direct-marketing, indirect profits: A strategic analysis of dual-channel supply chain design. Management Science, 49(1), 1–20.

    Article  Google Scholar 

  6. Chen, J., Liang, L., Yao, D., & Sun, S. (2016). Price and quality decisions in dual-channel supply chain. European Journal of Operational Research, 259(3), 935–948.

    Article  Google Scholar 

  7. Chen, J., Zhang, H., & Sun, Y. (2012). Implementing coordination contracts in a manufacturer Stackelberg dual-channel supply chain. Omega, 40(5), 571–583.

    Article  Google Scholar 

  8. Chen, K., Kaya, M., & Ozer, O. (2008). Dual sales channel management with service competition. Manufacturing & Service Operations Management, 10(4), 654–675.

    Article  Google Scholar 

  9. Chen, X., Li, B., An, S., & Li, Y. (2021). Pricing decisions with different time sequences inn a cross-border dual-channel supply chain. International Transactions in Operational Research, 28(5), 2518–2547.

    Article  Google Scholar 

  10. Dai, B., & Nu, Y. (2020). Pricing and capacity allocation strategies: Implications for manufacturers with product sharing. Naval Research Logistics, 67(3), 201–222.

    Article  Google Scholar 

  11. Dan, B., Xu, G., & Liu, C. (2012). Pricing policies in a dual-channel supply chain with retail services. International Journal of Production Economics, 139(1), 312–320.

    Article  Google Scholar 

  12. Dan, B., Zhang, S., & Zhou, M. (2018). Strategies for warranty service in a dual-channel supply chain with value-added service competition. International Journal of Production Research, 56(17), 5677–5699.

    Article  Google Scholar 

  13. Ding, Q., Dong, C., & Pan, Z. (2016). A hierarchical pricing decision process on a dual-channel problem with one manufacturer and one retailer. International Journal of Production Economics, 175, 197–212.

    Article  Google Scholar 

  14. Ha, A., Li, I., & Ng, S. (2003). Price and delivery logistics competition in a supply chain. Management Science, 49(9), 1139–1153.

    Article  Google Scholar 

  15. He, P., Wen, J., Ye, S., & Li, Z. (2020). Logistics service sharing and competition in a dual-channel e-commerce supply chain. Computers & Industrial Engineering. https://doi.org/10.1016/j.cie.2020.106849

    Article  Google Scholar 

  16. He, P., Zhang, S., & He, C. (2019). Impacts of logistics resource sharing on B2C e-commerce firms and consumers. Electronic Commerce Research and Application. https://doi.org/10.1016/j.elerap.2018.100820

    Article  Google Scholar 

  17. Hou, R., Li, L., Lin, X., Zha, Y., & Zhao, Y. (2021). Pricing strategy for logistics service platforms with competition and user distance preference. International Transactions in Operational Research, 28(6), 3437–3469.

    Article  Google Scholar 

  18. Hu, Y., Qu, S., Li, G., & Sethi, S. P. (2021). Power structure and channel integration strategy for online retailers. European Journal of Operational Research, 294(3), 951–964.

    Article  Google Scholar 

  19. Iyer, G. (1998). Coordinating channels under price and non-price competition. Marketing Science, 17(4), 338–355.

    Article  Google Scholar 

  20. Jia, J., Chen, S., & Li, Z. (2019). Dynamic pricing and time-to-market strategy in a service supply chain with online direct channels. Computers & Industrial Engineering, 127, 901–913.

    Article  Google Scholar 

  21. Jiang, Y., Liu, L., & Lim, A. (2020). Optimal pricing decisions for an omni-channel supply chain with retail service. International Transactions in Operational Research, 27(6), 2927–2948.

    Article  Google Scholar 

  22. Lai, G., Liu, H., & Xiao, W. (2018). ‘Fulfilled by Amazon’: A strategic perspective of competition at the e-commerce Platform. Available at SSRN 3270958.

  23. Li, G., Li, L., Sethi, S. P., & Guan, X. (2019). Return strategy and pricing in a dual-channel supply chain. International Journal of Production Economic, 215, 153–164.

    Article  Google Scholar 

  24. Li, G., Li, L., & Sun, J. (2019). Pricing and service effort strategy in a dual-channel supply chain with showrooming effect. Transportation Research Part E: Logistics and Transportation Review. https://doi.org/10.1016/j.tre.2019.03.019

    Article  Google Scholar 

  25. Li, G., Wu, H., & Xiao, S. (2019). Financing strategies for a capital-constrained manufacturer in a dual-channel supply chain. International Transactions in Operational Research, 27(5), 2317–2339.

    Article  Google Scholar 

  26. Li, G., Zheng, H., & Liu, M. (2020). Reselling or drop shipping: Strategic analysis of E-commerce dual-channel structures. Electronic Commerce Research, 20(3), 475–508.

    Article  Google Scholar 

  27. Li, M., Zhang, X., & Dan, B. (2020). Competition and cooperation in a supply chain with an offline showroom under asymmetric information. International Journal of Production Research. https://doi.org/10.1111/itor.12805

    Article  Google Scholar 

  28. Li, M., Zhang, X., & Dan, B. (2020). Cooperative advertising and pricing in an O2O supply chain with buy-online-and-pick-up-in-store. International Transactions in Operational Research, 58(19), 5964–5979.

    Google Scholar 

  29. Liu, D., Liu, Y. M., Fan, C., Hu, J. H., & Chen, X. H. (2021). Logistics service strategies under different selling modes. Computers & Industrial Engineering. https://doi.org/10.1016/j.cie.2021.107684

    Article  Google Scholar 

  30. Liu, Y., Li, J., Ren, W. W., & Forrest, J. Y. L. (2020). Differentiated products pricing with consumer network acceptance in a dual-channel supply chain. Electronic Commerce Research and Application. https://doi.org/10.1016/j.elerap.2019.100915

    Article  Google Scholar 

  31. Lus, B., & Muriel, A. (2009). Measuring the impact of increased product substitution on pricing and capacity decisions under linear demand models. Production and Operations Management, 18(1), 95–113.

    Google Scholar 

  32. Niu, B., Wang, J., Lee, C. K. M., & Chen, L. (2019). “Product+ logistics” bundling sale and co-delivery in cross-border e-commerce. Electronic Commerce Research, 19, 915–941.

    Article  Google Scholar 

  33. Niu, B., Xie, F., Chen, L., & Xu, L. (2020). Join logistics sharing alliance or not? Incentive analysis of competing E-commerce firms with promised-delivery-time. International Journal of Production Economics. https://doi.org/10.1016/j.ijpe.2019.107553

    Article  Google Scholar 

  34. Pei, J., Yan, P., Kumar, S., & Liu, X. B. (2020). How to react to internal and external sharing in B2C and C2C. Production and Operations Management, 30(1), 145–170.

    Article  Google Scholar 

  35. Pi, Z., Fang, W., & Zhang, B. (2019). Service and pricing strategies with competition and cooperation in a dual-channel supply chain with demand disruption. Computers & Industrial Engineering. https://doi.org/10.1016/j.cie.2019.106130

    Article  Google Scholar 

  36. Qin, X., Liu, Z., & Tian, L. (2020). The strategic analysis of logistics service sharing in an e-commerce platform. Omega. https://doi.org/10.1016/j.omega.2019.102153

    Article  Google Scholar 

  37. Qin, X., Liu, Z., & Tian, L. (2021). The optimal combination between selling mode and logistics service strategy in an e-commerce market. European Journal of Operational Research, 289(2), 639–651.

    Article  Google Scholar 

  38. Radhi, M., & Zhang, G. Q. (2018). Pricing policies for a dual-channel retailer with cross-channel returns. Computers & Industrial Engineering, 119, 63–75.

    Article  Google Scholar 

  39. Ricker, F., & Kalakota, R. (1999). Order fulfillment: The hidden key to e-commerce success. Supply Chain Management, 11(3), 60–70.

    Google Scholar 

  40. Ryan, J. K., Zhang, D., & Zhao, X. Y. (2012). Competition and coordination in online marketplaces. Production and Operations Management, 21(6), 997–1014.

    Article  Google Scholar 

  41. Tian, L., & Jiang, B. (2018). Effects of consumer-to-consumer product sharing on distribution channel. Production and Operations Management, 27(2), 350–367.

    Article  Google Scholar 

  42. Tian, L., Jiang, B., & Xu, Y. (2021). Manufacturer’s entry in the product-sharing market. Manufacturing & Service Operations Management, 23(3), 553–568.

    Article  Google Scholar 

  43. Wang, L., Song, H., & Wang, Y. (2017). Pricing and service decisions of complementary products in a dual-channel supply chain. Computers & Industrial Engineering, 105, 223–233.

    Article  Google Scholar 

  44. Wang, N., Fan, Z., & Zhao, X. (2017). Coordination in competitive dual sales channels of the mobile phone industry. International Transactions in Operational Research, 27(2), 984–1012.

    Article  Google Scholar 

  45. Wang, X., Ng, C. T., & Dong, C. W. (2020). Implications of peer-to-peer product sharing when the selling firm joins the sharing market. International Journal of Production Economics, 219, 138–151.

    Article  Google Scholar 

  46. Wu, Q., Mu, Y., & Feng, Y. (2015). Coordinating contracts for fresh product outsourcing logistics channels with power structures. International Journal of Production Economics, 160, 94–105.

    Article  Google Scholar 

  47. Xiao, T. J., Choi, T. M., & Cheng, T. C. E. (2014). Product variety and channel structure strategy for a retail-Stackelberg supply chain. European Journal of Operational Research, 233(1), 114–124.

    Article  Google Scholar 

  48. Xiao, T., & Shi, J. (2016). Pricing and supply priority in a dual-channel supply chain. European Journal of Operational Research, 254(3), 813–823.

    Article  Google Scholar 

  49. Xue, M., Zhang, J., & Zhu, G. (2020). Quantity decision timing with spillover effect and asymmetric demand information. Transportation Research Part E: Logistics and Transportation Review. https://doi.org/10.1016/j.tre.2020.102048

    Article  Google Scholar 

  50. Yan, B., Chen, X., Li, H., & Sun, Y. (2020). Managing homogeneous products in two competing supply chains under price and logistics service. Electronic Commerce Research. https://doi.org/10.1007/s10660-021-09416-1

    Article  Google Scholar 

  51. Yan, B., Chen, Z., Wang, X., & Jin, Z. (2020). Influence of logistic service level on multichannel decision of a two-echelon supply chain. International Journal of Production Research, 58(11), 3304–3329.

    Article  Google Scholar 

  52. Zhang, C., Li, Y., & Ma, Y. (2021). Direct selling, agent selling, or dual-format selling: Electronic channel configuration considering channel competition and platform service. Computers & Industrial Engineering. https://doi.org/10.1016/j.cie.2021.107368

    Article  Google Scholar 

  53. Zhang, C., & Ma, H. M. (2021). Introduction of the marketplace channel under logistics service sharing in an e-commerce platform. Computers & Industrial Engineering. https://doi.org/10.1016/j.cie.2021.107724

    Article  Google Scholar 

  54. Zhang, M., Fu, Y., Zhao, Z., Pratap, S., & Huang, G. (2019). Game theoretic analysis of horizontal carrier coordination with revenue sharing in E-commerce logistics. International Journal of Production Research, 57(5), 1524–1551.

    Article  Google Scholar 

  55. Zhang, X., Li, G., Liu, M., & Sethi, S. P. (2021). Online platform service investment: A bane or a boon for supplier encroachment. International Journal of Production Economics. https://doi.org/10.1016/j.ijpe.2021.108079

    Article  Google Scholar 

  56. Zhang, Y., He, Z., He, S., Cai, K., & Wang, D. (2020). Manufacturer warranty service outsourcing strategies in a dual-channel supply chain. International Transactions in Operational Research, 27(6), 2899–2926.

    Article  Google Scholar 

  57. Zheng, S., & Yu, Y. (2021). Manufacturer encroachment with equal pricing strategy. Transportation Research Part E: Logistics and Transportation Review. https://doi.org/10.1016/j.tre.2021.102346

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. School of International Economics and Trade, Shanghai Lixin University of Accounting and Finance, Shanghai, 201209, China

    Xin Guo

  2. School of Management, Shanghai University of Engineering Science, Shanghai, 201620, China

    Kai Gao & Shanshan Wang

Authors
  1. Xin Guo
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Kai Gao
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Shanshan Wang
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Shanshan Wang.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Springer Nature or its licensor holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Guo, X., Gao, K. & Wang, S. Share or not share: the optimal logistics service strategy in a dual-channel e-commerce supply chain. Electron Commer Res (2022). https://doi.org/10.1007/s10660-022-09613-0

Download citation

  • Accepted:

  • Published:

  • DOI: https://doi.org/10.1007/s10660-022-09613-0

Keywords

Search

Navigation