Advance Selling Decision Of M E-commerce Company With Considering Strategic Consumers With Order Cancellation

With the growing development of e-commerce and intensifying market competition,advance selling strategy has been embraced by a growing number of e-commerce companies and consumers.It is beneficial for M e-commerce company to conduct such a strategy which enables them to learn the popularity of products beforehand,forecasting the spot demand to reduce demand uncertainty based on the order quantity of products in advance selling period.And as for a consumer,advance selling strategy may bring risks and uncertainties.Considering the uncertainty about the future value of pre-sold products and the diversified alternatives flooding the market,it is more likely that some consumers may regret and return goods they ordered.However,consumer's decision with order cancellation will affect the accuracy grasp of the market and increase inventory risk of M e-commerce company.Based on the above realistic background,this paper takes the fashionable women's clothing advance selling by M e-commerce company as the research object?Facing the strategic consumers in the market,this paper discusses the single advance selling strategy without consumer's decision with order cancellation and the advance selling strategy with allowing cancellation of orders with consumer's decision with order cancellation.Then the consumer utility model and the expected profit model under two advance selling strategies are constructed respectively,and the optimal advance selling price and the optimal order quantity under different advance selling strategies are obtained by aiming at the maximization of consumer utility and expected profit.Finally,the paper analyzes the influence of related parameter variables on the advance selling price and expected profit and provides suggestions for the future advance selling strategy decisions of M e-commerce company.Through the analysis of models and examples,it can be seen that M e-commerce company adopt different sales strategies under different conditions.The specific conclusions are as follows: First,when consumer's decision with order cancellation is not considered,the optimal advance selling price of M e-commerce company under the single advance selling strategy is the increase of the probability of external factors and decrease.When consumer's decision with order cancellation is not considered,the optimal order quantity of M e-commerce company under advance selling strategy with allowing orders cancellation is smaller than that under single advance selling strategy.Second,single advance selling strategy applies to products with low cost only,while for products with high cost,more profits will be obtained only when employing advance selling strategy with allowing orders cancellation.Third,advance selling price and expected profit will increase as consumer valuation expectations increase.In this case,advance selling strategy with allowing cancellation of orders is the top choice.However,when consumer valuation becomes more and more dispersed,it will have a negative impact on the advance selling strategy,and the profit growth trend of the advance selling strategy with allowing cancellation of orders is no longer obvious.