Research On Pricing And Ordering Strategies Of Online Retailers Under The Pre-sale Model

With the development of economy and technology,consumers'behaviors and concepts are constantly changing.Nowadays,online shopping has become a popular way of consumption.At the same time,consumers are increasingly pursuing individuality and uniqueness,and are more actively involved in the consumption process.Under this situation,the new e-commerce model-pre-sale.It came into being.In the pre-sales mode,online retailers release information in advance to inform consumers and capture consumer demand before the product enters the market.Consumers usually choose products according to their own needs and prepay deposits.During the system setup time,consumers pay the final payment.The merchant delivers the goods to the consumer according to the agreed time.The pre-sales model enables bulk ordering or production of products based on consumer demand,saving capital and reducing inventory risks.Consumers reserve products under the premise of abandoning the time value of funds,avoiding the shortage of goods during normal sales,and pre-sales are often accompanied by price concessions,deposit expansion,full reduction activities,etc.,which can bring greater utility to consumers..At present,Tmall,Jingdong,Suning and official brands of major brands have established pre-sale channels.The pre-sale model has been involved in various fields such as electronics,fresh food,clothing,maternal and child care and cosmetics.However,due to the high volume production of orders,it is often accompanied by the risk of high return volume.How to conduct product pricing and ordering strategies to effectively attract consumers to purchase and reduce the risk of return is an urgent problem in the pre-sale mode problem.Therefore,based on the relevant literature,this paper studies the online retailer pricing and ordering strategy based on the "no defect return"product and the pre-sale model.The online retailer's ordering strategy is not only related to the consumer's buying behavior,but also to the consumer's return behavior.The study found that under the pre-sale model,the pre-sale price is inversely proportional to the deposit,proportional to the normal sales price,and proportional to the average eonsumer estimated utility.The optimal order quantity of an enterprise is inversely proportional to the return rate,inversely proportional to the unit ordering cost,and proportional to the residual value.In addition,the expected profit of online retailers is related to consumer demand and actual perceived utility.Under the pre-sales and normal sales mode,when the actual perceived utility of the consumer is higher,the order quantity of the pre-sales mode is the same as the normal sales mode,the maximum expected profit of the normal sales mode is higher than the pre-sale mode,and the normal sales mode has an advantage;The pre-sale model is more advantageous when the actual perceived utility is lower.Online retailers can develop a reasonable ordering strategy based on different consumer perceived utility to maximize corporate profits,and verify and analyze them through numerical examples.