The channel selection and coordination considering platform private-label products

Abstract

This paper studies online channel selection problems related to introducing a platform's private-label products to the manufacturer's own product. We examine the decision between two prevalent online sales modes: reselling mode and marketplace mode. Our results demonstrate that when the own-label products are sold in the marketplace mode, both the manufacturer and platform prefer to sell platform's private-label products in the marketplace mode, but the former prefers a low commission rate and the latter a high rate. However, a “win-win” zone exists in the marketplace mode for the manufacturer and platform under a moderate commission rate. When the own-label products are sold in the reselling mode, with the increase in the commission rate, the platform first prefers the reselling mode, then the marketplace mode, and finally the reselling mode. When the own-label products are sold in the reselling mode, the environmental impact depends on the commission rate and the environmental advantages of the private-label products. For quantity coordination, when the two products are sold in different modes, the manufacturer and platform can be coordinated under appropriate conditions. For social welfare coordination, even if both products are sold in the reselling mode, the two firms are coordinated under a low carbon emission.