With the rapid development of the cyber economy and green consumption demand, more and more consumers choose to purchase green products through e-commerce platforms. Considering the product green d...

Decisions and coordination of green e-commerce supply chain considering green manufacturer's fairness concerns

Does implementing trade-in and green technology together benefit the environment?

In recent years, topics such as sharing economy and circular supply chains have emerged in production research and operations management. To explore them and tackle the associated challenges, we ne...

https://www.tandfonline.com/doi/pdf/10.1080/00207543.2019.1681137

Game theory applications in production research in the sharing and circular economy era

Impact of carbon tax on enterprise operation and production strategy for low-carbon products in a co-opetition supply chain

Long delivery lead times and costly transportation postage are significant characteristics of B2C cross-border e-commerce and logistics. They engender preference inconsistencies and reversals in cu...

B2C cross-border E-commerce logistics mode selection considering product returns

In the context of remanufactured products with low production and carbon emission costs, manufacturing firms that produce and sell new and remanufactured products need to choose whether or not to o...

Optimal trade-in and warranty period strategies for new and remanufactured products under carbon tax policy

Whether a retailer should enter an e-commerce platform taking into account consumer returns

New trade-in services such as online trade-in, trade-in on e-commerce platforms and omni-channel trade-in, are emerging due to the development of e-commerce. To offer these new trade-in services, firms need to determine the optimal product price and rebate and decide whether to pay the rebate with a gift card (G) or cash (C). To address these challenges for firms, our paper considers a firm selling a new product to new consumers and offering a trade-in service to replacement consumers. In addition, we develop theoretical models to examine the optimal decisions in the cases of G and C and explore the optimal payment for the rebate. We reveal that G payment is a better choice for the firm only if the used product residual value is relatively low and the market size ratio between replacement and new consumers is relatively low; otherwise, the firm should choose C payment. Interestingly, replacement consumers’ preferred trade-in rebate payment (i.e., C payment) leads a lower trade-in demand than G payment and C payment may be harmful. In the extension, we consider a firm with online and offline sales channels and different types of replacement consumers who own different used products, and find that our main results regarding the optimal rebate payment still hold. Moreover, we find that in the context of a used product with a relatively medium residual value, firms with online and offline sales channels are more likely to choose G than firms with one sales channel; otherwise, firms are more likely to choose C.

Gift card payment or cash payment: Which payment is suitable for trade-in rebate?

This paper is motivated by the dilemma faced by firms who sell new and remanufactured products offline that need to consider whether to enter e-commerce platforms considering that more and more consumers are shopping online on e-commerce platforms rather than shopping offline. Our paper aims to help firms with new and remanufactured products make a channel choice and determine product pricing strategies in the contexts of e-commerce and carbon tax policy. Our paper uses optimization theory, game theory, utility functions and profit-maximization models to investigate the optimal channel choice of whether a firm should enter an e-commerce platform; it also investigates the optimal prices of new and remanufactured products and referral fees in two cases—the firm does not enter the platform (N) and the firm enters the platform (Y). Some insights are presented as follows: We found that the firm should enter the platform if the annual service fee is relatively low, otherwise, the firm should not enter the platform. Interestingly, in the case of a firm with an offline store with relatively large operational costs or hassle costs, the firm is more reluctant to enter the platform. In the extension, we considered some consumers who only purchase offline products, and found that the firm considering these consumers is more likely to choose not to enter the platform. Moreover, we argue that the carbon tax policy has a positive effect on product prices but a negative effect on referral fees charged by the platform, and the choice of Y hurts the environment due to a relatively high total carbon emission.

https://www.mdpi.com/2071-1050/11/19/5407/pdf

Optimal Channel Choice of Firms with New and Remanufactured Products in the Contexts of E-Commerce and Carbon Tax Policy

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Optimal trade-in and warranty period strategies for new and remanufactured products under carbon tax policy

Whether a retailer should enter an e-commerce platform taking into account consumer returns

Gift card payment or cash payment: Which payment is suitable for trade-in rebate?

Optimal Channel Choice of Firms with New and Remanufactured Products in the Contexts of E-Commerce and Carbon Tax Policy