Strategy on Role Management of E-commerce Platforms in commercial sector

Abstract

In this study, we explore the role management of a successful e-commerce platform. At present, a successful electronic platform mainly has three roles: a funding provider, a platform operator or a retailer, and an own-supporting logistics system establisher. When a new capital-limited entrant supplier tries to enter the market, we find that the e-commerce platform will welcome him and give him financial help under certain conditions. The different contract signing with the supplier has a great impact on platform’s profit. When the e-commerce platform signs a wholesale price contract with the entrant supplier, it will more likely to set a lower interest rate to gain more profits. However, when the e-commerce platform signs a revenue-sharing contract with the entrant supplier, it may consider more factors, including interest rate, logistics service price, and revenue-sharing ratio. Combined with logistics factors, we also conclude that e-commerce platforms gain most profits when they sign the revenue-sharing contract and do not provide the entrant supplier with own-supporting logistics service. We provide some managerial insights into strategies for e-commerce platforms.