Maximizing E-Tailers’ Sales Volume through the Shipping-Fee Discount and Product Recommendation System

Abstract

E-tailers can impact customers’ order incidence and cart size by offering an attractive shipping fee; they can also influence customers to purchase other products using a recommendation system. This article provides a combined model in which the shipping-fee discount and product recommendations occur jointly to maximize the sales volume of e-tailers. Selection of recommended products and discount of shipping fee are the dynamic issues involving the complexity of business environments. The proposed model first determines the optimal shipping-fee discount to attract customers and then establishes the most suitable product recommendation list to encourage customers to spend more money on other products. Through the use of a shipping-fee discount and simultaneous product recommendations, e-tailers maximize the sales volume. As for consumers, they can always get additional savings from the subsequent shopping process because the product’s shipping fee is lower than the original shipping costs. Experimental results indicate that the proposed approach is feasible and better than alternative methods for achieving sales volume maximization. Furthermore, sensitivity analysis validates the stability of the proposed model in the face of an uncertain environment. Therefore, using the shipping-fee discount and product recommendation system as a united marketing strategy can maximize e-tailers’ sales volume.

Influence of Shipping Fees in Customer Purchase Decisions for Online Retailers Residing within the Philippines

“…With the number of shipping fees as the study's focus, these specific situations appeared to reveal a substantial region in which they preserved the comprehension of this specific feature outside of the consumers' minds. According to Guo et al (2020), in order to maximize sales volume, the shipping charge must be dressed up as well to help attract customers for that goods. By doing so through discounts, buyers are observed to engage in such transactions with minimum friction.…”

Analisis Keputusan Pembelian Online Berdasarkan Faktor Diskon, Program Pengiriman Gratis, Dan Pelayanan

“…Dalam kajian psikologis, harga murah menjadi candu bagi konsumen. Hal ini terkonfirmasi oleh fakta lapangan, barang yang dijual lebih murah karena adanya diskon akan mengundang lebih banyak pembeli (Amanah & Harahap, 2018;Guo, et, al., 2020).…”

“…(2020) mengemukakan, adanya program layanan antar gratis memperkuat sikap konsumen di dalam melakukan pembelian. Selain itu, layanan gratis ongkir menjadi alternatif bagi konsumen di dalam melihat keunggulan para penjual (Guo, et, al., 2020).…”

Plant Disease Identification Based on Deep Learning Algorithm in Smart Farming

“…When F 1 ≈ 0 and F 2 ≈ 0, the computing ends. Level set method is used to solve (11) and zero level set is used to express contour lines. Heaviside's function and Dirac's function are introduced:…”

“…Internet technologies, in particular the availability of multimodality data from various sensors including the Internet of things and sensor networks, have developed rapidly [11]. Herein, a novel plant leaf identification model based on deep learning algorithm is designed to solve the above issues.…”