Abstract
Return policy is a strategic tool widely used by firms to build long-term relationship with their consumers. We develop a novel O2O (online to offline) competition model to address how the competitive return policies can be employed to coordinate the O2O distributions under the manufacturer – traditional retailer supply chain where the manufacturer opens an online channel to compete with the traditional retailer. Our results show that utilizing the revenue sharing plus profit sharing mechanisms, the manufacturer and the traditional retailer can employ different return policies for their respective channels to coordinate the O2O distributions and achieve a Pareto solution for all parties in a manufacturer - traditional retailer supply chain. Particularly when the product is becoming increasingly compatible with online sales, the value of the differential of return policies would further increase for both the manufacturer and the retailer.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
