Research on Logistics Cooperation Strategy of the Retailer and the Platform Based on Paid Membership System

Jiang Wu (), Linxiu Hu, Xiuli He and Xi Zheng
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Jiang Wu: School of Management Science and Engineering, Southwestern University of Finance and Economics, Chengdu 611130, China
Linxiu Hu: School of Management Science and Engineering, Southwestern University of Finance and Economics, Chengdu 611130, China
Xiuli He: Belk College of Business, University of North Carolina at Charlotte, Charlotte, NC 28223, USA
Xi Zheng: School of Management Science and Engineering, Southwestern University of Finance and Economics, Chengdu 611130, China

Sustainability, 2024, vol. 16, issue 8, 1-22

Abstract: E-commerce platforms have widely embraced the paid membership system as a sustainable and effective customer management method to increase repurchase rates and offer value-added services to loyal consumers. As a common means of member benefits and a crucial link for interaction with direct consumers, logistics service is related to the platform’s sustainable operation. In this context, this paper studies retailers’ and e-commerce platforms’ cooperation strategies regarding logistics services under paid membership systems, and analyzes the impact of paid membership system on optimal outcomes. The results indicate that, in the case of the basic-service contract, sales profits decrease but membership fees increase as membership service quality increases. In accordance with the terms of the full-service contract, the platform would lower the commission fee and membership fee as the membership service quality improves. The retailer and the platform tend to sign basic-service contracts when the third-party logistics fee is low-cost, since there is a win–win interval. We also extend the logistics plan to include self-delivery and switch to centralized decision making, and we find that the basic-service contract’s win–win interval persisted. Our results reveal the fundamental connection between paid membership systems and logistics cooperation strategy, serving as a theoretical guide for the decision makers.

Keywords: paid membership system; cooperation strategy; logistics service sharing; e-commerce platform (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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