Online retail formats and product sales performance: The moderating role of product characteristics
Hao Wang,
Valerie Good and
Joon Ho Lim
Journal of Business Research, 2025, vol. 198, issue C
Abstract:
Suppliers and e-retailers are business-to-business partners who are both competitors and collaborators. With the platformization of online retailers, suppliers can either sell their products to the e-retailer (i.e., reselling) or directly sell to customers on the platform (i.e., agency selling). Yet, few empirical studies provide insights into which online retail format (agency or reselling) is associated with better product sales performance. Additionally, which product characteristics leverage the effectiveness of the retail format? Drawing on the Grossman–Hart–Moore (GHM) framework, the authors suggest that agency selling is associated with lower product sales performance than reselling. They test their hypotheses using data from a leading online platform. Results from a mixed-effect linear model show the negative association between agency selling and product sales performance is weaker for higher-priced, search, and nondurable products, and for products with lower review volume.
Keywords: Platform selling; Ownership; Agency selling; E-retailing; Retailer and supplier sales (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:198:y:2025:i:c:s0148296325003327
DOI: 10.1016/j.jbusres.2025.115509
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