Does the Winner Take All in E-Commerce of Agricultural Products under the Background of Platform Monopoly?

Abstract

This paper explores the impact of e-commerce on profit margin from the perspective of scale using nation-level survey data from China. The results show that e-commerce can increase the profit margin of cooperatives, and that a higher proportion of sales via e-commerce strengthens profitability. Secondly, the effects of agri-e-commerce on cooperative profit margin is highly dependent on young talents with rich experience and high education level; in particular, female leaders have a significantly stronger effect on improving profit margins by using e-commerce than male leaders. Thirdly, the operating scale of cooperatives does not have a direct impact on the profit margins, but a bigger operating scale can significantly enhance the effect of e-commerce on profit margins. Lastly, a higher degree of standardization of cooperatives and products more clearly evidences the role played by e-commerce, including the number of brands and certification. Overall, this research provides a micro-foundation for cooperatives to better incorporate the key role of e-commerce under the background of platform monopoly and sheds light on how the government can formulate relevant policies to better support China’s e-commerce development.

Keywords

• e-commerce
• scale operation
• profit margin
• ESR model