How Does the Mobile Channel Reshape the Sales Distribution in E-Commerce?

Abstract

This study empirically investigates (1) how the sales distribution in the mobile commerce channel is different from the sales distribution in the traditional PC channel and (2) how mobile commerce channel adoption affects e-market users’ search intensity and their aggregate sales distribution. Our analysis shows that transactions in the mobile channel are more concentrated on “head” products compared with PC channel sales. However, it does not imply that the presence of the mobile channel concentrates the demand on head products in online markets, given that mobile channel users can purchase products in the PC channel as well. On the basis of the subsequent user-level analysis, we reveal that in the case of preference goods such as books, CDs, toys, and fashion items, mobile commerce channel adoption increased e-market users’ search activities and resulted in more “tail” product sales. For quality goods such as PCs, phones, cameras, and digital appliances, however, adoption intensified the search activities but resulted in more head product sales. Finally, for convenience goods such as home supplies and processed foods, adoption discouraged search activities and decreased the choice of tail products.