Free Shipping in Cross-Border Supply Chains Considering Tax Disparity and Carrier’s Pricing Decisions
Different from local sales, offering free shipping can be a strategic decision for the retailers/brands who sell products to overseas customers. This also significantly influences the carrier's pricing decisions because of tax policies in different countries/regions. In this paper, we consider customers' preference for free shipping and investigate two competing retailers' free shipping decisions when they rely on a common carrier for cross-border logistics services. We focus on the impact of retail price competition and the carrier's tax cost, which shows uniqueness in the shipping industry. We find that, if the carrier is non-resident, given one retailer's free shipping, the other one would follow the step when the retail price competition is intense and the carrier is faced with large tax disparity. Interestingly, the carrier will benefit from the two retailers' free shipping when the retail price competition is mild and the tax disparity is large. If the carrier is resident and both retailers offer free shipping, we find that all supply chain parties will be beneficial, resulting in a win-win-win situation
Year of publication: |
2020
|
---|---|
Authors: | Niu, Baozhuang |
Other Persons: | Xu, Haotao (contributor) ; Xie, Fengfeng (contributor) |
Publisher: |
[2020]: [S.l.] : SSRN |
Description of contents: | Abstract [papers.ssrn.com] |
Saved in:
Extent: | 1 Online-Ressource |
---|---|
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 5, 2020 erstellt Volltext nicht verfügbar |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012823844
Saved in favorites
Similar items by person
-
Niu, Baozhuang, (2021)
-
The Value of Smart Contract and Members' Participation Incentives in a Co-Opetitive Supply Chain
Niu, Baozhuang, (2020)
-
Real-time payment in cross-border operations considering local competition and tax-planning
Niu, Baozhuang, (2022)
- More ...