A Supply Chain Coordination Study Considering Returns And Online Reviews

Because of the rapidly expanding electronic commerce,the quantity of dealers(including manufacturers and retailers,etc.)who find the unique advantages of online sales channels is increasing year by year.In consequence,many enterprises set up online sales channels based on third-party e-commerce platforms(such as JINGdong and Taobao,etc.).Through the dual-channel supply chain model,companies can further improve their brand and influence and expand the product demand and their profits.Nonetheless,while the dual-channel sales model brings business opportunities,it also brings some new problems,among which the problem of losing consumers due to returns has aroused great concern of e-commerce enterprises.When purchasing products online,consumers cannot understand the products through their intuitive feelings.They can get the product value from the product dexcription information given by sellers online and the reviews provided by previous consumers online.So consumers’ perception of the product is biased.As a result,after receiving the product,they will ask for return because the color,style and size of the product do not meet consumers’ expectations,which seriously affects consumers’ desire to buy and enterprise earnings.In the process of consumption,online reviews influence potential consumers’ s decision through the product information they contain.During the return process,the long return time and cumbersome return process make consumers’ shopping experience worse or even worse,which will influence all channel members’ pricing decisions and profits,and finally the influence of the supply chain that cannot be ignored.In consequence,how online reviews and return services affect the pricing and decision-making of supply chain members has become a concern of merchants.This paper make relevant research on the dual-channel supply chain led by a certain manufacturer,and builds three different dual-channel supply chain models,all of which take the influence of returns and online reviews into account.Explore and analyze the optimal pricing decisions and profits of supply chain’s manufacturers and retailers under three different return policies,and also analyze the effects of product return rate,online review perceived quality and return service on related members and overall profits.Come to the conclusions that: Manufacturer’s optimal wholesale price,online price and retailer’s optimal price are positively correlated with online review perceived quality and return service level.Under different return policies,the return rate has a negative impact on the party providing return service.The level of return service and perceived quality of network comments can make a beneficial effect on profits for all parties.Secondly,in this paper,based on revenue sharing contract again,build the three coordination model under the return policy,and analyzes what effect of the rate of return,service level of return and perceived quality of network remarks will exist on coordinating role perception,research shows that: the coordination model can effectively coordinate the supply chain,and the manufacturers share ratio should be low,the retailer’s share ratio is higher,the coordination effect is better.Finally,this paper reviews the logic of the whole paper,summarizes the research conclusions,point out weaknesses of the paper directly,and gives the future research direction.In addition,the model established in this paper has certain contributions to improve the theoretica study of two-channel supply chain,and has guiding significance for enterprises in the management of returns and online comments and supply chain management of these aspects.