Abstract
Considering the growing phenomenon of consumer returns and channel power struggles in e-commerce supply chains (ESCs), the ESC model is constructed and its equilibrium solutions are calculated and compared. Further, the consumer utility function is constructed to explore the impact of returns and dominant enterprises on consumer utility. Based on this, the “return cost-sharing and commission readjusting” contract is designed to maximize both ESC and consumer utility. Finally, the paper validates and further analyzes conclusions through numerical simulation. The main conclusions are as follows: higher return rates and return handling costs will reduce market demand and ESC profits, while higher salvage value of returned products will have a positive impact on ESC, but the above factors will not affect the online service level under decentralized decisions. The impact of consumer’s service quality preferences on manufacturer’s profits and e-commerce platform’s profit is determined by channel power structure. The impact of return rate on consumer utility depends on two factors: the decision-making model and the hidden cost of consumer returns.
Highlights
With the high growth of the network economy, more and more products are sold through online channels, which has led to the formation of the e-commerce supply chain (ESC)
Which channel power structure is more conducive to the stable operation of the ESC? How do ESC participants in different channel power structures make decisions to maximize their profits? Do consumer returns affect ESC or consumer utility differently under different channel power structures? e existing research does not provide clear answers to these questions. erefore, this paper explores the optimal solution to ESC under different channel power structures and draws conclusions on the impact of channel power structure on ESC efficiency and consumer utility
Based on the serious consumer returns of ESCs and considering the different channel power structures, the paper examines the impact of channel structures and consumer returns on ESC
Summary
With the high growth of the network economy, more and more products are sold through online channels, which has led to the formation of the e-commerce supply chain (ESC). 2. Literature Review e paper aims to examine how ESC members under different power structures make decisions and coordinate when there is significant consumer return behavior in the e-commerce market. More relevant to this study, Wang et al [27] and Liu and Ke [57] researched the impact of power structures between manufacturers and e-platforms on product pricing, but neither of them considered the serious consumer returns in ESC. They did not study the flood of consumer returns in the ESC It can be seen from the above literature that the previous research only considers one or more of the below factors, such as online sales channels, channel power, customer returns, service level, and coordination contract.
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