Strategic Introduction of Private Labels and Coordination Mechanisms in Dual-Channel E-Commerce Platforms

Xuanyi Li; Yilei Zhu; Xuan Chao

doi:10.62177/amit.v1i2.339

Authors

Xuanyi Li Nanjing University of Finance and Economics
Yilei Zhu Nanjing University of Finance and Economics
Xuan Chao Nanjing University of Finance and Economics

DOI:

https://doi.org/10.62177/amit.v1i2.339

Keywords:

Dual-Channel Supply Chain, Private Label, E-Commerce Platform, Game-Theoretic Analysis

Abstract

In the context of dual-channel supply chains, a game-theoretic model is developed to examine the strategic implications of private label introduction by e-commerce platforms under both scenarios: with and without private labels. The model analyzes optimal decisions regarding pricing, advertising investments, wholesale prices, marginal profits, and equilibrium payoffs for manufacturers and platforms operating under a reselling model. The findings indicate that private label introduction significantly influences the strategic choices and profit outcomes of both manufacturers and platforms, with the direction of impact varying based on the manufacturer’s unit reselling cost. Numerical simulations further validate the theoretical results and illustrate the effects of private label introduction on key variables within the supply chain. This research provides theoretical insights and managerial implications for e-commerce platforms to formulate private label strategies and optimize supply chain collaboration under varying market conditions.

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