New Business Model for Ecommerce Logistics: a Game Theoretic Study

Abstract: 

Ecommerce has been rising strongly, which can be justified by the global retail e-commerce sales of 2.3 trillion US dollars in 2017. However, due to its unique features, ecommerce logistics encounters some critical challenges, especially in the sector of inventory management and distribution for medium-sized operators. This research aims to establish new business models for ecommerce logistics by game theoretic approaches under four scenarios, including automated warehousing system management, last-mile delivery, first-mile collection and reverse logistics. Until now, we have completed the first scenario by offering a new game-theory framework with a warehouse operator and a use-oriented automation provider. The optimal operation strategies for both parties under different power structures are analyzed. The impacts of key factors on both parties’ strategies and performance are discussed. Some basic game models for last-mile delivery have been established as well, which suggest the optimal marketing strategies for the carrier logistics providers to improve their profit.