Abstract
E-commerce platforms adopt both reseller and agency business modes to achieve better performance, and also provide financing services for qualified manufacturers to alleviate their financial difficulties. This paper analyzes financing strategy (bank financing or platform financing) and business mode selection (reseller mode, agency mode or both of them) for a capital-constrained manufacturer. We find that no matter which business mode is adopted, the platform always provides lower interest rates than bank, which in turn makes retail prices lower. Meanwhile, the manufacturer and the platform can become more profitable under platform financing. In addition, compared with the manufacturer adopting bank financing, the manufacturer has different business mode preferences when adopting platform financing. We put forward business mode recommendations for the manufacturer under different financing strategies.
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.
