B2c Electronic Retailer Return Strategy Decision Model Research

Along with the growth of the information society, the internet has been anindispensable part of human’s life. The internet not only transformed the High-tech intopractical productive forces, but also transformed the business activities intoelectronic executable program.Electronic commerce has gradually become anindispensable part of economic activities. Some services that were impossible in thepast can be easily accomplished with electronic commerce. Information transmission,news communication, market exploitation were completed successfully in a flash.Electronic commerce is becoming the core motive power for stained development ofenterprise, which changed the extensive economy which is high cost and low income ofindustrial pattern.With the rapid development of electronic commerce, it brought some problems fortraders and consumers that can not be negligible, such as return of goods. There aresome reasons that, such as the convenience of returns, some gaps betweenpropagandizing and information of commodity and consumer’s expectations, goodswere broken in the course of logistics distribution, and enterprise of electroniccommerce provide liberal return policy etc. Aiming at this fact, retailer makereasonable return policy plays a crucial role for the development of enterprises.This thesis regard return policy of e-commerce divide into four: time limit and theoriginal price refund policy; time limit and the original price lower than a refund policy;no time limit and the original price refund policy; no time limit and the original pricelower than a refund policy. The thesis first base on has time limit, the original pricerefund policy of A retailer, get the optimal quantity by build a mathematic model, thenthrough the simulation test model and get some conclusions. Followed that, builtmathematic model respectively for three other return policies and get their optimalquantity, and through analyzing the logistics costs which have an effect on profits ofretailer, put some improvement suggestions. Further more, by the simulation, this thesisget the best return policy is no time limit and the original price lower than a refundpolicy. And it analyses that choice the optimal strategy, the two factors which include cost of handling returned products and wholesale price have an effect on profits ofretailer. The thesis draw a conclusion that with regard to the same return rate, the greaterproportion of the return of goods which sold secondly as the same price,the more profit.The lower wholesale, the more return rate retailers can afford. The purpose of retailerschose return policy aims to increase the profit, and the return rate is the key factoraffecting profit. At the end, for decrease the return rate, the paper gives some advices tothe retails according to analysis the real data.