E-tailer’s procurement strategies for drop-shipping: Simultaneous vs. sequential approach to two manufacturers

Guo Li, Xuefeng Zhang and Mengqi Liu

Transportation Research Part E: Logistics and Transportation Review, 2019, vol. 130, issue C, 108-127

Abstract: This paper examines the effect of drop-shipping on the procurement strategy of an e-tailer who sells products for two upstream competing manufacturers. The e-tailer is powerful and determines her approach sequence, thereby resulting in simultaneous and sequential structures. Given an approach structure, we investigate the e-tailer’s choice between the pure batch ordering (BO) and hybrid shipping (HS) modes. Interestingly, the e-tailer prefers simultaneous structure over sequential structure in the BO mode, while in the HS mode she chooses sequential structure. In the HS mode, the e-tailer prefers the batch ordering manufacturer to move first.

Keywords: E-Commerce; Decision structure; Procurement strategy; Drop-shipping; Competition (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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DOI: 10.1016/j.tre.2019.08.014

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