Modeling of sales processes in the manufacturer – marketplace system

Abstract

Introduction. E-commerce is becoming one of the priority channels for the distribution of goods. Marketplaces with their large segments of the target audience and a wide range of logistics, marketing, information, and other services are the most extensively growing e-platforms. It seems relevant to use mathematical tools to describe various schemes of interaction between manufacturers and marketplaces since by now scientific papers consider only theoretical issues of cooperation between manufacturers and marketplaces and do not outline the elements of this system.

Purpose. The study investigates the basic schemes of interaction between manufacturers and marketplaces and develops a universally applicable economic and mathematical model of interaction between manufacturers and marketplaces.

Materials and Methods. The article examines theoretical and methodological approaches to the organization of cooperation between manufacturers and electronic marketplaces to identify the cooperation models relevant for the Russian marketplaces, their features, advantages and disadvantages.

Results. The authors developed a fulfillment-based economic and mathematical model of the organization of the manufacturer’s sales system provided the goods are safely stored in the warehouse of the marketplace. The model defines the functions of the manufacturer’s revenue as the volume of sales on the online platform and the costs of warehousing, transportation, marketing promotion, commission fee and other related costs to maximize the manufacturer’s profit, determines restrictions on the number of goods sold, stored and manufactured, the volume of goods in stock and the seller’s rating on the marketplace.

Conclusion. The paper describes a universally applicable model for manufacturers using the first-level sales channel as a marketplace with no distributors, wholesalers, and retailers, and marketplaces providing a range of logistics services, including warehousing, sorting, and delivery of goods to customers. Further research suggests developing a model for manufacturers’ interaction with marketplaces to explore possible channels for the distribution of products in case goods are stored in their own warehouses and retail chains’ warehouses.

Keywords: marketing operations, marketplace, manufacturer, sales expenses, sales system modeling, economic and mathematical modeling

For citation

Uvarova L. A., Ivanov D. Yu. Modeling of sales processes in the manufacturer – marketplace system. Perm University Herald. Economy, 2024, vol. 19, no. 3, pp. 284–299. DOI 10.17072/1994-9960-2024-3-284-299. EDN SBAMGQ.

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