Research On The Optimal Pricing Strategies Of E-Commerce Retailers Who Provide Customized Products Considering Return Strategies

E-commerce retailers are enriching their business models in order to gain competitive advantage in the increasingly diverse consumer demand-Online purchase of customized goods is one of them.With the development of E-commerce platform,the development of E-commerce retailers who provide customized products is very rapid.However,with the increasing volume of transactions,some problems emerge,such as the difficulty of returns management and the high price of customized products.These problems restrict the healthy and rapid development of customized e-commerce.Against this background,it is urgent to study the return strategy and pricing strategy of customized e-commerce products.This paper is divided into two parts,one is the return cost of customized e-commerce under different return policies,the other is the pricing strategy of customized e-commerce based on returm cost.Firstly,after extensive reading of the previous literature,it concludes that the returm problem of customized e-commerce products is the return of products with quality problems,so this paper does not consider the situation of product defect-free return.Then,according to the return policy of e-retailers providing customized Commodity services at the present stage,the paper summarizes the literature of previous studies and concludes that the three return policies to be studied in this paper are:non-return of problem products,full return of problem products and partial return of problem products,and partial return of problem products.Subsequently,the return cost under three kinds of return policies is analyzed by using the method of modeling analysis.Furthermore,considering the purchase and non-purchase of freight insurance,based on the return cost,three product pricing models are established,and the models are deduced and analyzed.Finally,take the E-commerce retailers who provide customized products on Taobao platform as an example,set the numerical value,and validate the conclusion of the model through the example analysis.The results show that:(1)E-commerce retailers who provide customized products can set the highest price when they adopt the policy of returning all the defective products,followed by the policy of returning the defective products without returning them,and the policy of returning part of the defective products with the lowest price.(2)E-commerce retailers who provide customized products have the highest profit when they adopt the return policy of not returning all the defective products,followed by the return policy of partial return of the defective products,and the return policy of returning all the defective products is the lowest profit.(3)The degree of convenience of returns perceived by consumers or the compensation for returns perceived by eonsumers will have a positive impact on the pricing and profit of customized e-commerce.(4)The decision of purchasing freight insurance will affect the pricing and profit of customized e-commerce.The price of customized e-commerce products is proportional to return rate and freight insurance,while the profit of customized e-commerce is inversely proportional to return rate and freight insurance,while freight insurance and return rate are proportional.(5)The most profitable pricing strategy is to adopt the optimal pricing under the policy of no refund for all the problematic products.