Pricing Strategy of E-commerce Company’s Cross-border Logistics Considering Different Customer Utilities and Volume Discount Contracts
Date Issued
2015
Date
2015
Author(s)
Shih, Huei-Lun
Abstract
Through the prevalence of online shopping and the increase of cross-border logistics service providers, cross-border online shopping became a trend. However, some online shops do not provide overseas delivery or shipment fee is too high compared to the value of products. As a result, after consulting cross-border e-commerce company, I realized e-commerce market in Taiwan is saturated and cross-border transactions will become a fierce battle field of global e-commerce. The essence of cross-border logistics is guaranteed delivery time because it affects price and market demand. There are a variety of strategies for time-based competition, and the most common two strategies are uniform delivery time and differentiated delivery time. Example of the former is e-commerce company usually makes a seven-days-delivery guarantee to its customers, and instance of the latter is that courier provides express and normal delivery services for its customers. In this paper, I contribute to build up a model helping companies to choose the most profitable strategy. With the understanding that customers could be divided into two groups by their sensitivities to delivery time, lead-time sensitive and price sensitive. Therefore, I build up a model considering different customer demands in separate demand functions and also take customer utilities and delivery contracts with 3PL into consideration. I find out that company without capacity limitation should apply price differentiation strategy; otherwise, it should take uniform delivery guarantee strategy.
Subjects
Time-based competition
Uniform quotation mode
Differentiated quotation mode
Guaranteed delivery time
Price quotation
Type
thesis
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ntu-104-R02546012-1.pdf
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