E-commerce supply chains under capital constraints

Abstract A capital constraint is an important factor which restricts the development of small and medium-sized e-commerce platforms. So, the influence of different ways of capital constraint relief on the pricing and service strategies of an e-commerce supply chain was investigated. In order to investigate whether the small and medium-sized e-commerce platform adopts a loan strategy and induces the manufacturer to share the service cost, four decision-making models were constructed. Then the supply chain’s pricing and service strategies were analyzed. Following this analysis, we study the conditions for the manufacturer to share the service cost, for the platform to choose the loan strategy, and for a bank to induce the platform to implement a loan strategy. Finally, numerical analysis was employed to prove the correctness of our conclusions. The results show that when the manufacturer shares part of the service cost, the more self-owned funds of the platform, the more beneficial for the manufacturer. Moreover, it is highly advantageous to relieve capital constraints when the manufacturer and the platform share the service cost and the platform implements a loan strategy. Further, we obtain the effective range of a flexible loan rate which is conducive to the operation of the e-commerce platform.

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