Optimal Order Decision for e-Commerce Platform Retailers Considering Impulsive Consumers and Customer Returns

Yujia Bai, Chong Wang () and Xingyu Chen
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Yujia Bai: Sichuan Agricultural University
Chong Wang: Sichuan Agricultural University
Xingyu Chen: Sichuan Agricultural University

A chapter in LISS 2023, 2024, pp 78-89 from Springer

Abstract: Abstract This study examines the optimal order decision of an e-commerce platform retailer based on a wholesale price contract, considering customer returns, in response to an increase in the number of impulsive consumers under the speedy expansion of live e-commerce. By maximizing the profit models both without and with impulsive consumers, we show that the optimal decisions are the only existence for both cases. The optimal order quantity decreases as the refund price increases. Maximum expected profit for the retailer and the optimal order quantity are decreasing in the proportion of impulsive consumers. Comparative analysis shows that the optimal order quantity and the maximum expected profit with impulsive consumers are less than those without impulsive ones. The impact of customer returns on retailer decisions is greater when impulsive consumers exist.

Keywords: Revenue management; e-commerce platforms; impulsive consumers; customer returns (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnopch:978-981-97-4045-1_6

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DOI: 10.1007/978-981-97-4045-1_6

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