Research On Resale Channel Selection And Pricing Of Returned Products

In order to cope with the increasingly severe competitive environment and changing market demand,manufacturers have formulated return policies to allow retailers to return unsold products at a certain price at the end of the sales period.However,the returned products increase the pressure of inventory and the proportion of capital.Therefore,manufacturers need to deal with them reasonably and scientifically in order to achieve the whole product sales week.Maximization of future profits.In view of the fact that resale can realize the discount transaction of returned products and fully exploit the profit potential of returned products,more and more manufacturers will deal with returned products without quality defects through resale.Nowadays,the re-sale channels can be divided into manufacturer's direct marketing channels and third-party cleaner's distribution channels.For example,the clothing brand Meters Bonwe receives the returned products at the end of the sales period from all sales outlets and discounts them through self-owned discount stores or third-party cleaners(such as Merchandise Club,hereinafter referred to as the third party).Therefore,how manufacturers choose the re-sale channel of returned products and how to formulate two-cycle pricing strategy have become the key issues that manufacturers need to solve urgently.This paper takes two kinds of re-sale channels in the market as the research background,constructs the re-sale channel model of manufacturer's direct marketing and third-party distribution of returned products,considers the influence of consumers' acceptance of re-sale channels,the discount value of strategic consumers and the proportion of strategic consumers on channel selection,builds market demand model according to consumer utility theory,and compares different market environments.The efficiency of manufacturer's direct marketing channel and third-party distribution channel in dealing with the return product channel is obtained,and the dynamic decision of manufacturer's dealing with the re-sale channel of return product is obtained.Through the analysis of three market situations,two pricing strategies are formulated to explore the optimal two-cycle pricing of manufacturer's direct distribution channel and third-party distribution channel.It will provide a reference for manufacturers in dealing with the channel selection and two-cycle pricing strategy of returned products,provide a theoretical reference for manufacturers to improve the economic benefits of returned products more effectively,and enrich the relevant theory of distribution management in supply chain management.Research shows:(1)When the returned products enter the initial stage of the re-sale channel,consumers' acceptance of the re-sale channel is the key factor affecting the existence of the third-party distribution channel;when consumers' acceptance of the re-sale channel is low,manufacturers should choose the self-operated direct marketing channel to deal with the returned products;as consumers' acceptance of the re-sale channel increases gradually,manufacturers' direct marketing channel deals with the returned products.The advantage of third-party distribution channels in dealing with returns has gradually become prominent.(2)When the returned products enter the mature period of the retail channel,the manufacturer's choice of the retail channel is influenced by the strategic consumer discount valuation coefficient and the third-party distribution channel's relative efficiency to the manufacturer's direct distribution channel.The manufacturer should dynamically select the retail channel according to the different discount valuation and market environment of the consumer.(3)When the returned products enter the maturity period of the retail channel,if the manufacturer chooses the third-party distribution channel to deal with the returned products,the manufacturer should make a reasonable wholesale price in the first cycle and a reasonable sales price in the second cycle according to the proportion of strategic consumers,the discount valuation coefficient of strategic consumers and the reserved fees of the third party.