Ship-from-store strategy in platform retailing

In the omnichannel retailing context, some online-first retailers open the offline channel to implement cross-channel operational strategies to improve the consumer's experience. This paper develops an analytical model of the retailer's offline entry and omnichannel fulfillment option (i. e., the Ship-from-Store option) under competition through the platform's self-run store. In the omnichannel scenario, the retailer can provide time-sensitive consumers with a quick logistics service by implementing the Ship-from-Store option. We focus on the value of the Ship-from-Store option and explore the effects of this option on the pricing decisions of the retailer and platform. We also explore how consumer heterogeneities (time sensitivity and transportation costs) affect the retailer's omnichannel operations. In addition, we identify conditions under which the retailer can benefit from the Ship-from-Store option. Some managerial insights are provided.

Automated summary

This study examines the strategy of online-first retailers opening offline channels to improve consumer experience in the omnichannel retail environment. The Ship-from-Store option provides quick logistics services for time-sensitive consumers, and pricing decisions are adjusted based on consumer time sensitivity and transportation costs.