Research on the Transformation to SFS Omnichannel and Price Influencing Factors Based on Consumer Channel Preferences

Linli Meng () and Xinyuan Yao ()
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Linli Meng: Shanghai Normal University Tianhua College
Xinyuan Yao: Shanghai Normal University Tianhua College

A chapter in Proceedings of the 4th International Conference on Internet Finance and Digital Economy (ICIFDE 2024), 2024, pp 222-234 from Springer

Abstract: Abstract This paper constructs a supply chain consisting of one manufacturer, one offline retailer, and one online retailer. Using the Stackelberg model, it comparatively analyzes the optimal profits of the dual-channel retail model and the SFS (shipping from the store) omnichannel retail model in this supply chain. The analysis reveals that when the SFS channel market expansion coefficient reaches a certain threshold, the total profit of the SFS omnichannel supply chain will always be greater than that of the dual-channel supply chain. Therefore, for traditional offline retailers hoping to transition to omnichannel retail, expanding the SFS channel is a viable option. Furthermore, the paper analyzes the main factors affecting the pricing and profits of each member in the SFS omnichannel supply chain. The study finds that an increase in the SFS channel market expansion coefficient will enhance the supply chain’s pricing and profits, and an increase in the level of value-added services will improve the supply chain’s profits.

Keywords: Consumer Channel Preferences; dual-channel supply chain; omnichannel; SFS (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-534-8_22

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DOI: 10.2991/978-94-6463-534-8_22

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