Sustainable Suppliers-to-Consumers’ Sales Mode Selection for Perishable Goods Considering the Blockchain-Based Tracking System

Shuai Zhao and Xiaoning Cao ()
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Shuai Zhao: Faculty of Management and Economics, Kunming University of Science and Technology, Kunming 650504, China
Xiaoning Cao: Faculty of Management and Economics, Kunming University of Science and Technology, Kunming 650504, China

Sustainability, 2024, vol. 16, issue 8, 1-32

Abstract: Given the significant product spoilages of perishable goods transported over long distances, they are usually sold from suppliers to consumers through an offline direct channel. Sustainable suppliers can utilize the blockchain-based tracking system (BTS) to reduce product spoilages, enabling the spoilage reduction effect, and offer authentic information, triggering the premium effect. With the advent of e-commerce, they can now opt for an online direct channel, setting the online direct price as either non-different or different from the offline direct price, and have to face challenges in selecting the optimal sales mode. This paper addresses these complexities by developing a mathematical model to construct a sustainable suppliers-to-consumers pricing model, incorporating the BTS, in the perishable goods market. Our research reveals that the decision to adopt the BTS hinges on factors like the spoilage reduction effect, premium effect, production cost, and tag cost, with the premium effect outweighing the spoilage-reduction effect. The necessity of using the BTS grows with extended circulation times, where the BTS significantly reduces spoilages during transportation, fostering sustainable development. While sustainable suppliers may not always bear the tag cost independently, they can adjust their pricing strategies automatically and pass the tag cost to consumers for more profit. The BTS adoption decision does not influence the optimal sales mode selection strategy. The offline direct channel offers the highest profit for suppliers, followed by the Online to Offline (O2O) direct channel with differential pricing, and the O2O direct channel with non-differential pricing yields the lowest profit.

Keywords: sustainable suppliers-to-consumers’ sales mode selection; blockchain-based tracking system; perishable goods; the spoilage reduction effect; the premium effect (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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