Supplier encroachment and information transparency on fresh produce e‐commerce platform: Impacts on the traditional channel

Abstract

AbstractAs fresh produce e‐commerce develops, some suppliers with traditional channels begin to encroach online through agency or reselling mode of the platform. This paper studies the supplier's entry mode choice and the platform's information sharing strategy and analyzes impacts on the traditional channel. It reveals that the platform may voluntarily share information. However, increasing commission fees may inhibit the sharing motivation. The supplier may choose entry with agency selling to induce information sharing even at high commission fees. Under equilibrium strategy, the traditional channel demand and the retailer's profit may increase, indicating that supplier encroachment may achieve all‐win situation.