Optimal pricing and ordering strategies for dual-channel retailing with different shipping policies

<p style='text-indent:20px;'>In this paper, considering dual-channel retailing (online channel and offline channel), we study the pricing and ordering problem under different shipping policies. In this research, we mainly consider three shipping policies: without shipping price (OSP), with shipping price (WSP) and conditional free shipping (CFP). Based on the principle of maximum utility, we firstly obtain the probability of demand for the online and offline channels and further model the pricing and ordering problem under the three shipping policies. Further, avoiding the curse of dimensionality, the deep deterministic policy gradient (DDPG) method is employed to solve the problem to obtain the optimal pricing and ordering policy. Finally, we conduct some numerical experiments to compare the optimal pricing and ordering quantity under the three different shipping policies and reveal some managerial insights. The results show that the conditional free shipping policy is better than the other two policies, and stimulates the increase of demand to gain more profit.</p>

Show Me the Money: The Economic Impact of Membership-Based Free Shipping Programs on E-Tailers

This research examines the economic impact of membership-based free-shipping (MFS) programs when introduced as an augmentation to widely accepted contingent free-shipping (CFS) policies. Under CFS, consumers waive the shipping surcharge if the order exceeds a certain threshold, whereas under MFS, consumers pay an upfront fee and enjoy the free-shipping perk throughout the membership period. We develop a stylized model that considers consumer heterogeneity in two dimensions: (1) disutility from acquiring an auxiliary product—a product that consumers would not otherwise purchase—to qualify for CFS; and (2) shopping frequency over a given period. Our analysis suggests that the introduction of MFS allows the e-tailer to segment the market further, which could lead to a higher product price. When the disutility from acquiring an auxiliary product is moderate, the e-tailer should charge a high membership fee to target only frequent shoppers who forgo CFS. However, the e-tailer should lower the fee to lure also (1) frequent shoppers who would otherwise take CFS, when the disutility is high; or (2) infrequent shoppers who would otherwise forgo CFS, when the disutility is low. In all cases, although the collected fee revenue can never compensate for the cost arising from offering the free-shipping perk, the loss can be recouped as a desirable outcome of a more segmented market. Our research generates insights into the optimal design of e-tailers’ shipping policies, shedding light on the practical challenges that confront e-tailers.

Pengaruh Promosi Gratis Ongkos Kirim Shopee Terhadap Minat Beli Konsumen di Toko Non Star Seller

This study aims to determine whether or not Shopee's free shipping has an effect on consumer buying interest in non-star seller stores. The theory used by the writer is marketing communication, promotion and buying interest. This study uses a quantitative research approach with a questionnaire method. The research technique used is non-probability sampling with a purposive sampling approach, in which samples are taken by determining criteria or special characteristics that can provide the desired and appropriate information and are expected to be able to answer research problems. Respondents in this study were 100 respondents. The population of this research is Shopee e-commerce users who have made transactions using free shipping vouchers. Data collection techniques using a questionnaire and literature study. The test requirements used are validity test, reliability test and normality test. Data analysis using the T test, correlation coefficient test, coefficient of determination and simple regression analysis. The results of this study indicate the promotion of free shipping has a low effect on consumer buying interest in non-star seller stores by 7.9%.Penelitian ini bertujuan untuk mengetahui ada atau tidaknya pengaruh gratis ongkos kirim Shopee terhadap minat beli konsumen di toko non star seller. Teori yang digunakan penulis adalah komunikasi pemasaran, promosi dan minat beli. Penelitian ini menggunakan pendekatan penelitian kuantitatif dengan metode kuesioner. Teknik penelitian yang digunakan adalah non probability sampling dengan pendekatan purposive sampling yaitu sampel di ambil dengan cara menetapkan kriteria atau ciri-ciri khusus yang dapat memberikan informasi yang diinginkan dan sesuai dan diharapkan mampu menjawab permasalahan penelitian. Responden dalam penelitian ini sebanyak 100 responden. Populasi penelitian ini adalah pengguna e-commerce Shopee yang pernah bertransaksi dengan menggunakan voucher gratis ongkos kirim. Teknik pengumpulan data dengan menggunakan kuesioner dan studi kepustakaan. Uji pesyaratan yang digunakan adalah uji validitas, uji reliabilitas dan uji normalitas. Analisis data dengan menggunakan uji T, uji koefisien korelasi, koefisien determinasi dan analisis regresi sederhana. Hasil dari penelitian ini menunjukkan promosi gratis ongkos kirim memiliki pengaruh rendah terhadap minat beli konsumen di toko non star seller sebesar 7,9%.

Marketing strategy planning at alfamart lodadi stores using the clustering, ahp, and ar-mba method

Nowadays, people are very facilitated by the existence of various shopping centers, including retail. Because many retailers are close to each other, Alfamart Lodadi must have a good marketing strategy. So far, the strategy used is sometimes inaccurate because it is not based on customer segmentation. Therefore, the purpose of this research is to help retail owners to make decisions regarding the right marketing strategy with three methods so that Alfamart Lodadi can compete and increase sales. The Analytical Hierarchy Process (AHP) is employed to find the priority variables of customer segmentation; meanwhile, the K-Means Clustering is used to group customers based on the similarity of predetermined characteristics. AR-MBA is used to find out the best rules, and products are rarely, sufficient, and frequently purchased. The results of this research, based on AHP, obtained five segmentation priority variables based on the largest eigenvector values. There are income, age, expenditure, distance, and shopping intensity with each eigenvector value of 0.13; 0.16; 0.12; 0.12; 0.17. From clustering, there are three customer clusters with different strategies, including free shipping when shopping, product discounts for certain periods, and providing catalogs and discounts on each transaction and offer notifications. Then, this research also obtained three strategies based on AR-MBA. These include making a catalog by bringing frequently purchased products closer together, choosing a layout for shopping places by bringing frequently purchased products closer together, and making shopping coupons for rarely purchased products. With several strategic choices, companies can make decisions appropriately according to the desired criteria.

Perancangan Website dengan Menerapkan Customer Relationship Management (CRM)

With the technology that is currently developing, especially in the online sales business, an online sales website is designed on the Wishy Store Distro by designing customer relationship management in attracting customer shopping interest in the products sold by providing and supporting the best service to customers. . The customer relationship management features that are presented and designed include, among others, customers can get a discount for a certain amount of purchase, customers can get free shipping for a certain number of purchases, customers can contact the Wishy Store Distro admin to ask about products for returns for shipping errors or defects. products, customers can create and send statuses about products being sold and can give likes to fellow customers or other users who have posted statuses on the feed page. The design of Customer Relationship Management on the Wishy Store Distro uses PHP as the programming language with MySQL as the database, Sublime Text 3 and Notepad ++ as the script editor.

How Can SMEs Become More Sustainable? Modelling the M-Commerce Consumer Behaviour with Contingent Free Shipping and Customer Journey’s Touchpoints Optimisation

Digital technology is leading the transformation of business models into sustainable ones, expanding and changing the competitiveness scenario. This paper aims to promote a new sustainable retailer model shaped by contingent free shipping theory and the optimisation of the customer’s journey, enriching the scientific literature by proposing a consumer behavioural model that highlights the contribution of four selected touchpoints to the sustainable transformation of SMEs. The research was elaborated by deploying a framework that presents five analysis methods, namely, an additive function construction, a TOPSIS method, a Spearman rank correlation coefficient calculation, a content analysis and an analytic hierarchy process, which engender the new model. Discovering nine distinguished categories of e-tailers, the sustainable retailer profile was developed and the touchpoint with the greatest contribution to the transformation process was identified. The results of the study allowed the authors to propose the model as a solution to withstand the preponderant negative experience provided by analysed e-tailers to digital buyers, representing the opportunity for SMEs’ sustainable transformation and long-term growth in a competitive, ever-growing market.