Research On Operation Optimization Of Pharmaceutical E-commerce Platform Under The B2C Environment

Manifestations of Business To Customer(B2C)business mode are online retailing and offline delivery.Medicine E-commerce is a variety of business activities centered on medical and medicine-related goods,which is based on Internet and mobile Internet.This paperreferred topharmaceutical e-commerce platform in B2 C mode as Pharmaceutical E-commerce Platform(PEP),such as 111.Inc,Jointown Pharmaceutical Group and Kad.com.As an emerging member of the B2C mode,PEP can make full use of the online advantages to quickly respond to patients and promote the innovation and scientific development of the industry.Research on operation optimization of pharmaceutical e-commerce platform under the B2C environment is from the perspective of life cycle.Firstly,the paper describes the operation strategy of PEP in the market development period based on the short-term interest theory of managers.Secondy,after entering the growth stage,PEP will refine its operations,use the category management theory and estimate the market share of medicine based on the demand forecasting method.Thirdly,when PEP enter the mature stage,it is more important for PEP to establish the pharmaceutical cold chain and consider the social responsibility of the enterprise than considering the operation of its own platform.The main research work of this paper is summarized as follows:1.PEP is an emerging industry.At the initial stage of the platform entering the market,due to its weak user base and low popularity,risk-neutral managers are not only interested in the real value obtained by the platform through long-term operation,but also interested in the profits that the platform can obtain in a short-term.In order to describe the short-term behavior of managers,this paper divides the pricing optimization model of PEP into two stages.The main conclusions are as follows:(1)Information asymmetry,network externalities of bilateral platforms and managers' short-term strategies can effectively attract bilateral user quantity at the initial stage when the platform enters the market.(2)The comprehensive utility of managers increases with the weight of short-term value evaluation.Without proper supervision,managers will still make short-term decisions even if they know that the PEP will lose money.(3)Under effective supervision,when the manager's short-term strategy is in a certain range,PEP can not only get enough traffic but also get corresponding profits.2.When PEP enters the growth stage,it should focus on its own sales volume and profit.Current studies of e-commerce page space optimization literature,mostly from the perspective of consumer psychology or design.This paper studies the influence of web space optimization on e-commerce sales from the perspective of category management theory,and considers the characteristics of medicine.Discard the traditional category management,Multinomial Logit model(MNL model),but using exogenous demand model,this paper provides web page space optimization strategy for PEP to improve the sales volume.Through empirical analysis of the sales data from August 1,2015 to October 31,2015 of China's well-known PEP 111.Inc,this paper raises main conclusions as follow:(1)Afterother anti-HBV medicine column changes the content and order based on the model,the sales volume of PEP can be significantly improved.(2)Through the reordering of all categories,the sales volume of 111.Inc can be improved,up to 27.21%.(3)By estimating the substitution rate,the model established in this paper can effectively quantify the cannibalization effect among commodities,help PEPto optimize web space,increase sales,and thus improve market share.3.When PEPenters the mature stage,as a core enterprise,it should established the pharmaceutical cold chain,considered the social responsibility of enterprises,and made contributions to the society.This paper uses the operation data of xiaoxue cold chain(wuhan)logistics co.,LTD.,one of the top 500 private enterprises in China,to verify the rationality of addition form of the demand function.The unique feature of pharmaceuticals makes the pharmaceutical cold chain more complex than the traditional supply chain.This paper get main conclusions as follow:(1)When the refrigeration effort is exogenous,the optimal order quantity and the optimal retail price of PEP are only related to the refrigeration effort,and are not related to each other.In other words,the optimal order quantity and the optimal retail price are determined with the refrigeration effort.(2)When the retail price is exogenous,the optimal refrigeration effort of pharmaceutical e-commerce is related to the first derivative zero of the actual unit cost of the product.When the optimal refrigeration effort is determined,the optimal order quantity of pharmaceutical e-commerce is also determined.(3)When the order quantity is exogenous,the retail price set by PEP and the profit increase with refrigeration efforts,but the marginal profit decreases with refrigeration efforts.