How much are sellers willing to pay for the features offered by their e-commerce platform?

Searom Lee, Sang Yup Lee and Min Ho Ryu

Telecommunications Policy, 2019, vol. 43, issue 10

Abstract: The success of an e-commerce platform is significantly dependent on the number of sellers and their quality. Thus, it is important to understand the factors that influence a seller's platform choice. This paper investigates features of an e-commerce platform on which sellers place high value when choosing a platform to sell their products, using a conjoint analysis. The data was collected by online survey from 1,796 sellers who are using Naver Smart Store (https://sell.smartstore.naver.com), which is one of the largest e-commerce platform in South Korea. After analyzing the willingness to pay for each combination of functions by separating six functions of Naver Smart Store, it was estimated that the MWTP ranged 3.05 to 4.48 for the main process related functions and 2.61–5.3 for the sub process related functions. MWTP can be considered as a benefits for the sellers since Naver does not require monetary commissions from sellers. This paper also shows that the higher technical understanding of the functions provides the more value to platform to sellers.

Keywords: E-commerce platform; Online platform strategy; Conjoint analysis; Willingness to pay; Naver smart store (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (6)

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DOI: 10.1016/j.telpol.2019.101832

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