B2C E-Commerce Competition Environment3C Products Dynamic Pricing Strategy Research

With the rapid development of B2C in E-commerce, it brings many opportunities and challenges for online retailers. In the opportunity respect, when the online retailers face the changing market environment, they can make a more flexible pricing strategy to get more revenue. For example, the price of3C products cannot remain unchanged. The products may be no longer popular, their performance and configuration cannot meet consumer demand, or the technologies make the progress. These cases lead to lower the price of3C products. In the challenge respect, it comes from the internal management problems of enterprises on one hand. With the rapid and steady development or expansion of enterprises, they also need control the operational cost. For example, in order to attract more consumers, the online retailers add the input in the consumer’s shopping experience and the delivery time of goods. But the ratio of input and output need control effectively, otherwise they will damage these enterprises’ interests. On the other hand, the pricing competition among online retailers becomes ferocious. The strong network retailers always occupy a more favorable position on the market and have an enormous impact on the decision-making of competitors and market. When the weak network retailers face the competition of the strong network retailers, they need increase the value-added of goods to improve the satisfaction of consumer.The purpose of this paper is to discuss the pricing problem of3C products within the two-stage based on the inventory, the amount of products ordered and price competition. This paper assumes the sale price is a reduction process within the two-stage. There are two cases in the second stage. One assumes the first stage of sales is greater than the minimum target sales, and the pricing of the second stage is the same as the first stage. The other assumes the first stage of sales is not greater than the minimum target sales, and the price of the second stage will lower. Then the pricing models within the two-stage are integrated. Based on the above assumptions, the pricing and the amount of products ordered for the strong network retailers are analyzed when considering replenishment of stock or out of stock. For the second case described above, the replenishment of stock and the reaction of competitor to the price are considered. Firstly, the competitive pricing are analyzed in a single stage, and the optimal prices of the strong and the weak network retailers are obtained. On this basis, this paper assumes the two-stage dynamic pricing of the strong and the weak network retailers are synchronized. Then the pricing model of the single stage extends to the two-stage which considers the replenishment of stock. Finally, based on the random demand, case studies of three dynamic pricing models for the strong network retailers are analyzed. The sensitivity analysis of related variables are discussed, including the impact of expected revenue, pricing and the amount of products ordered to the strong and the weak network retailers. And some appropriate conclusions are draw.