Title: Selection of logistics service modes in e-commerce based on multi-oligopolies Cournot competition

Authors: Lin Ma; Chun Jin; Yunfu Huo

Addresses: Institute of Systems Engineering, Dalian University of Technology, Dalian 116024, China ' Institute of Systems Engineering, Dalian University of Technology, Dalian 116024, China ' R&D Centre of Electronic Commerce and Modern Logistics, Dalian University, Dalian 116633, China

Abstract: This paper focuses on the selection of e-commerce logistics service modes that is becoming more and more prominent as its importance. The current researches are mainly limited by using the empirical method but rarely considering the multi-oligopolies competition and comparison among modes. Four modes are modelled in this paper based on multi-oligopolies Cournot competition theory. The results show that the improvement of logistics service management and technological progress are the basis, the marginal service cost is the most important, then the transaction cost and the scale effect in the mode selection. When the logistics service ability is given, the mode of opened platform provides to online stores (PO) is an advantage strategy for e-commerce platform and common online stores. The mode of opened 3PL providers provide to online stores (TO) is an advantageous strategy with competitive price for opened platform and is more attractive to small online stores.

Keywords: e-commerce; electronic commerce; logistics service mode; mode selection; multi-oligopolies Cournot competition.

DOI: 10.1504/IJSTL.2019.100487

International Journal of Shipping and Transport Logistics, 2019 Vol.11 No.4, pp.354 - 383

Accepted: 18 Jun 2018
Published online: 29 Jun 2019 *