 Impacts of selling models: Who should offer trade-in programs in e-commerce supply chains?Wei Wang, Lipan Feng, Xiaoxu Chen, Lei Yang and Tsan-Ming Choi Transportation Research Part E: Logistics and Transportation Review, 2024, vol. 186, issue C Abstract: Although some prior studies have examined the optimal trade-in providers in supply chains, the impacts of alternative online selling models like reselling and agency selling that are widely adopted in the e-commerce environment are under-explored. Traditionally, both the manufacturer and retailer have incentives to offer trade-in programs to consumers in a supply chain. However, this is no longer true when an agency selling model is implemented. In this paper, we investigate the equilibrium “trade-in provider” under the two selling models respectively in a stylized e-commerce single-manufacturer single-e-tailer supply chain. Our findings show that different selling models do have distinct influences on the two firms’ preferences of who should provide the trade-in program. Particularly, under the reselling model, there is always a conflict between the two firms regarding who should provide trade-ins, which is consistent with the findings in related literature; however, under the agency selling model, there are some win-win cases under which the two firms possess consistent preferences on the trade-in format. Furthermore, the “boxed pigs game” equilibrium may appear under agency selling, where either of the two firms has to provide the trade-in program, although this is not their most preferred trade-in format. The robustness of our main results has been well verified by extending our study to consider (i) the case where the e-tailer can be delegated to implement trade-ins, (ii) the case where the e-tailer is the first-mover in determining whether to provide trade-ins, and (iii) the reselling and agency selling models co-exist. Keywords: Supply chain management; E-commerce; Reselling; Agency selling; Trade-in program (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:186:y:2024:i:c:s1366554524001157 Ordering information: This journal article can be ordered from DOI: 10.1016/j.tre.2024.103524 Access Statistics for this article Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier |
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