Can Reselling Models be Better than Agency Models
Featuring Parshuram Hotkar
A study examines when big online platforms invite suppliers to resell products versus simply listing them for a commission.
Display Settings
Display mode
Text size
Listen to this article
Parshuram Hotkar
Assistant Professor of Operations Management. His research focuses on strategic interactions in competing supply chains, with applications in omnichannel retail and the pharmaceutical sector. He teaches supply chain optimisation, strategic procurement, operations, and social media analytics.
Key Takeaways
- A reselling model can make both the supplier and platform better off compared to agency sales when both the intensity of competition among the traditional resellers and cross-channel substitutability are sufficiently high.
- Widely available, branded products are more likely to be sold through a reselling channel because they can be easily substituted and found online and offline.
- Niche products have fewer substitutes, making them more likely to be sold through the agency channel.