Selling mode choice considering blockchain in platform market Online publication date: Thu, 29-Feb-2024
by Xue-mei Zhang; Su-qin Sun; Qiu-ying Lv
International Journal of Simulation and Process Modelling (IJSPM), Vol. 20, No. 3, 2023
Abstract: The application of blockchain to trace product information has received extensive attention when consumers purchase products through E-commerce platforms. By combining two selling modes (i.e., reselling and agency selling modes) with blockchain, four models are found to analyse the impact of blockchain on the decisions and selling mode selection in a platform supply chain (PSC). Our conclusions show that: when the fixed fee is low, the manufacturer would introduce blockchain, which increases the demand and benefits the retailer and the platform. The manufacturer will choose agency selling mode when the commission rate is low with or without blockchain; otherwise, he prefers reselling mode, which will hurt the benefits of the retailer and the platform. This is opposite to that of the platform. In general, when the fixed fee of blockchain introduction and commission rate satisfy some conditions, the agency selling mode with blockchain can achieve win-win outcomes for PSC and consumers.
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