Research On Pricing Decision Of Third-Party Overseas Warehouse With Dominant Service Provider

Since the outbreak of the global financial crisis in 2008,the world economy has continued to slump.Under the negative influence of the shrinking demand in European and America market,the continued appreciation of RMB and the rise of labor costs and raw material prices,the growth rate of China’s foreign trade has slowed sharply and foreign-oriented enterprises are strongly affected.On the contrary,cross-border e-commerce has grown rapidly.With the rapid development of e-commerce,cross-border e-commerce becomes a new growth point of China’s foreign trade,and provides a good way for foreign-oriented enterprises to upgrade.Cross-border logistics is a major bottleneck in the development of cross-border e-commerce.The overseas warehouse,an emerging logistics model is considered to be a good way to solve the problem of current cross-border logistics.Although the overseas warehouse has many advantages and gets much support from government,the current overseas warehouse market is quite mixed.Take third-party overseas warehouse for example,the service level is uneven and there is not a unified framework for pricing decision.In the cooperative relationship between the third-party overseas warehouse service providers and their partners,the price of overseas warehouses is one of the most important factors.It affects the distribution of interests,decides whether this partnership can develop stably and sustainably and has an important impact on the operation management of overseas warehouses.Therefore,it is an important problem to decide reasonable price of third-party overseas warehouse,which has certain research significance and practical value.Based on the analysis of the current situation of cross-border logistics,this paper focus on the cross-border logistics system composed of third-party overseas warehouse service providers and cross-border electronic retailers and studies the optimal price decision strategies when considering the impact of logistics service level on product demand By using game theory and optimization theory,this paper puts forward the basic pricing model and extended pricing model of the third-party overseas warehouse.Also,it obtains the optimal strategy under the non-cooperative and cooperative decision-making,and the properties of the model are studied by comparing static equilibrium analysis and dynamic equilibrium analysis.Finally,in order to verify the effectiveness of the model,numerical analysis is conducted to test whether the basic pricing model can encourage retailers and service providers to strive to improve their core competitiveness.The innovation of this paper is to apply the traditional third-party logistics service pricing model to the emerging scenario of cross-border e-commerce,and to improve the model by considering the impact of logistics service level on product demand and introducing product market competition.So it is more in line with the current situation of cross-border e-commerce.This paper proves that the third-party overseas warehouse pricing method under the cooperative decision-making has endogenous incentive characteristics to encourage service providers and retailers to develop their own core competitiveness,which is beneficial to the long-term development of this cooperative relationship.It provides a theoretical basis and reference for the price decision-making of relevant enterprises.