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

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. Seco...

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Bibliographic Details
Main Authors: Liang Chi, Mengshuai Zhu, Chen Shen, Jing Zhang, Liwei Xing, Xiangyang Zhou
Format: Article
Language:English
Published: MDPI AG 2023-02-01
Series:Agriculture
Subjects:
Online Access:https://www.mdpi.com/2077-0472/13/2/476
Description
Summary: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.
ISSN:2077-0472