Simulation Modeling and Analysis on the Value-Added Service of the Third-Party E-Commerce Platform Supporting Multi-Value Chain Collaboration

Service-oriented third-party e-commerce platforms have emerged as a new trend in the manufacturing industry. This paper aims to investigate the platforms’ value-added service (VAS) and charging strategies with a dynamic evolution analysis. Considering the change in the user numbers and characteristi...

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Bibliographic Details
Published in:Journal of theoretical and applied electronic commerce research 2024-06, Vol.19 (2), p.846-862
Main Authors: Li, Wenbo, Zhang, Yajie, Dan, Bin, Zhang, Xumei, Sui, Ronghua
Format: Article
Language:English
Subjects:
Algorithms
Collaboration
Cooperation
Costs
Customer services
Electronic commerce
Information technology
Investment policy
Literature reviews
Manufacturers
Manufacturing
multi-value chain
Profits
Suppliers
Supply chains
System dynamics
third-party e-commerce platform
Value chain
Value engineering
value-added service
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Summary:Service-oriented third-party e-commerce platforms have emerged as a new trend in the manufacturing industry. This paper aims to investigate the platforms’ value-added service (VAS) and charging strategies with a dynamic evolution analysis. Considering the change in the user numbers and characteristics of the e-commerce industry, this paper proposes a system dynamics model composed of multi-value chains and a third-party e-commerce platform. The simulation results indicate that the platform should reduce VAS investment and appropriately increase the VAS fee in the early development period. After the number of users stabilizes, the platform should appropriately increase its VAS investment and reduce the VAS fee. When the VAS fee is low, the platform profit first increases and then decreases as the VAS level increases. Differently, the platform profit will first decrease, then increase, and finally decrease as the VAS level improves when the VAS fee is low. This paper further finds that the strong cross-network effect of manufacturers is not always beneficial to the platform.
ISSN:0718-1876
0718-1876
DOI:10.3390/jtaer19020044