Simulation Modeling and Analysis on the Value-Added Service of the Third-Party E-Commerce Platform Supporting Multi-Value Chain Collaboration

Abstract

Service-oriented third-party e-commerce platforms have emerged as a new trend in the manufacturing industry. This paper aims to investigate the platforms’ value-added service (VAS) and charging strategies with a dynamic evolution analysis. Considering the change in the user numbers and characteristics of the e-commerce industry, this paper proposes a system dynamics model composed of multi-value chains and a third-party e-commerce platform. The simulation results indicate that the platform should reduce VAS investment and appropriately increase the VAS fee in the early development period. After the number of users stabilizes, the platform should appropriately increase its VAS investment and reduce the VAS fee. When the VAS fee is low, the platform profit first increases and then decreases as the VAS level increases. Differently, the platform profit will first decrease, then increase, and finally decrease as the VAS level improves when the VAS fee is low. This paper further finds that the strong cross-network effect of manufacturers is not always beneficial to the platform.

Keywords

• third-party e-commerce platform
• value-added service
• multi-value chain
• system dynamics