Payment methods and sustainable inventory management in online business: a comparative analysis

Manoj Kumar Sharma, Shubham Bhushan and Pragati Bhardwaj

International Journal of Procurement Management, 2025, vol. 24, issue 1, 25-54

Abstract: In the dynamic world of online business, the choice of payment methods plays a crucial role in shaping how inventory is managed. Firstly, cash on delivery are examined for their immediate liquidity benefits, which help in quickly turning over inventory and managing cash flow efficiently. Secondly, advance payments are analysed for their ability to offer upfront capital, thus reducing the need for extensive inventory financing. Finally, credit payments (buy-now-pay-later and EMI options) are assessed for their potential to boost sales volume and consumer purchasing power. In this study employs a demand-sensitive pricing approach and explores investments in preservation technology. The decision-making process incorporates considerations of carbon emission policies and investment of preservation technology. The primary focus is on a comparative analysis of payment schemes in the context of online inventory management. Theoretical insights are validated through numerical examples and sensitivity analyses to derive practical managerial implications.

Keywords: e-commerce business; price sensitive demand; preservation technology; payment schemes; deterioration; carbon emission. (search for similar items in EconPapers)
Date: 2025
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