PRICING STRATEGIES FOR FRESH E-COMMERCE SUPPLY CHAINS:ACCOUNTING FOR CUSTOMER RETURNS
Based on a two-tier supply chain consisting of a fresh e-commerce platform and retail stores,this study examines the strategy selection problem faced by the fresh e-commerce platform when dealing with po-tential return rates due to individual differences in consumers' perceptions of the quality of agricultural prod-ucts,assuming that the quality standards of fresh agricultural products in the supply chain are primarily set by the fresh e-commerce platform.The study finds that in the face of potential consumer return rates,the optimal strategy for the fresh e-commerce platform is not to allow returns,and centralized decision-making is optimal under any strategy combination.If allowing consumer returns is a given strategy,the return rate will signifi-cantly affect decision variables and profits,positively impacting the selling price and lead time,and negatively impacting market demand,profits of all parties,and total channel profit.Additionally,the study finds that there is a threshold for the return rate;when the return rate is below this threshold,allowing consumer returns makes the operation of the supply chain sustainable,but if it exceeds this threshold,the operation becomes unsustainable.At the same time,if the fresh e-commerce platform leverages its advantageous position in the supply chain to shift the disposal costs of unsold products at the end of the sales period to the retail stores,it can increase its own profits and total channel profit more effectively.