ANALYZING THE CHARACTERISTICS AND IMPLICATIONS OF E-COMMERCE PLATFORMS: A LITERATURE REVIEW AND ANALYSIS

Author Name: 1. Mudasir Ahmad Tass, 2. Iqbal Ahmad Hakim

Volume/Issue: 04/04

Country: India

DOI NO.: 08.2020-25662434 DOI Link: https://doi-ds.org/doilink/09.2023-91568962/UIJIR

Affiliation:

1. Research Scholar, Department of Management Studies, University of Kashmir, India.
2. Professor, Department of Management Studies, University of Kashmir, India.

ABSTRACT

The ascending tendency of clients choosing to buy a broader range of goods and services via internet channels has contributed to the increasing significance of electronic commerce as a mechanism of vending in recent times. The online marketplace plays a crucial role in this commerce industry by connecting manufacturers and consumers. The e-commerce platform, when providing services to producers, may function as an online retailer or as a direct-sales marketplace. This study examines the strategic interactions between an e-commerce platform and two brand manufacturers, using a game-theoretic model in four different business modes. The results imply that the e-commerce platform earns more profit when both brand manufacturers sell their products directly through the online marketplace. Using the electronic-commerce platform as a reseller instead of selling directly could prove to be a more profitable strategy for brand manufacturers, regardless of the business model. The study also finds that competition between brand manufacturers is beneficial to the e-commerce platform. The findings of this study provide a theoretical foundation for brand manufacturers and e-commerce platforms to make more informed decisions and update existing knowledge on brand competition and e-commerce platform business mode choices in the current scenario.

Key words: E-commerce platforms, Two-sided network effects, Agency selling, Reselling, Information sharing, online shopping, Hybrid models, Direct sales, E-business.