Journal Article

Simultaneous or Sequential? Supplier Product Launch Strategy through E-Commerce Channels with Different Models

Wu, Yeting, Wang, Baojiao, Li, Zhiwen

2024

Overview

As the e-commerce landscape diversifies, suppliers are faced with the critical decision of how to effectively launch their products through e-commerce channels with varying business models. This study aims to explore the strategic considerations for a supplier launching products through two distinct e-commerce channels: one based on a direct sale model and the other on a reselling model. It builds a theoretical model to examine the supplier’s decision-making across three strategic options: a simultaneous launch through both channels, a sequential launch starting with the direct sale model followed by the reselling model, and vice versa. The equilibria of those options are derived through game analysis and further compared. The results reveal that for suppliers under a non-alliance pricing contract, a simultaneous product launch across both channels is the most advantageous approach. Conversely, in scenarios where an alliance pricing contract is in place, the optimal strategy shifts towards a sequential launch. The decision of which channel to ally with—whether the direct sale or the reselling model—hinges critically on the difference in service efficiency and the intensity of competition between the channels. This nuanced analysis highlights the importance of strategic flexibility and alignment with channel dynamics in maximizing product launch success in the evolving e-commerce environment.

• Publisher: MDPI AG
• Subject: alliance pricing contract / Business models / Channels / Competition / e-commerce channel / Electronic commerce / Game theory / non-alliance pricing contract / Optimization / Pricing / product launch / Profits / Strategy / strategy selection / Suppliers