An Empirical Study of Holiday Season Discounts: A Comparison Between Third-Party Marketplace Sellers and Fulfilled by Walmart Sellers

When online retailers allow third-party sellers to place certain products on their platforms, these sellers become not only collaborators but also competitors. The purpose of this study is to compare the differences in price discounts between Third-Party Marketplace (3PM) sellers and Fulfilled by Wa...

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Main Authors: Ya-Ling Chiu, Yuan-Teng Hsu, Xiaoyu Mao, Jying-Nan Wang
Format: Article
Language:English
Published: SAGE Publishing 2021-06-01
Series:SAGE Open
Online Access:https://doi.org/10.1177/21582440211024179
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author Ya-Ling Chiu
Yuan-Teng Hsu
Xiaoyu Mao
Jying-Nan Wang
author_facet Ya-Ling Chiu
Yuan-Teng Hsu
Xiaoyu Mao
Jying-Nan Wang
author_sort Ya-Ling Chiu
collection DOAJ
description When online retailers allow third-party sellers to place certain products on their platforms, these sellers become not only collaborators but also competitors. The purpose of this study is to compare the differences in price discounts between Third-Party Marketplace (3PM) sellers and Fulfilled by Walmart (FBW) sellers on Walmart.com over time. The results, based on data collected in the form of the daily prices of 54,162 products offered by Walmart during the holiday season, show that the average discount for 3PM sellers is significantly lower than that for FBW sellers. In addition, across product categories, FBW sellers had significantly higher average discounts than 3PM sellers in the electronics, housewares, and toys categories. Furthermore, the level of discount began to increase in early November and peaked around Christmas. Our findings may help retailers manage their dealings with these third-party sellers while also helping consumers to optimize their purchasing decisions.
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spelling doaj.art-d19093da112c41198708494f3d3572f62022-12-21T22:08:07ZengSAGE PublishingSAGE Open2158-24402021-06-011110.1177/21582440211024179An Empirical Study of Holiday Season Discounts: A Comparison Between Third-Party Marketplace Sellers and Fulfilled by Walmart SellersYa-Ling Chiu0Yuan-Teng Hsu1Xiaoyu Mao2Jying-Nan Wang3Research Institute for Modern Economics and Management, Zhejiang Yuexiu University, Shaoxing, ChinaResearch Center of Finance, Shanghai Business School, Shanghai, ChinaSchool of Economics and Management, Chongqing University of Posts and Telecommunications, Chongqing, ChinaCollege of International Finance and Trade, Zhejiang Yuexiu University, Shaoxing, ChinaWhen online retailers allow third-party sellers to place certain products on their platforms, these sellers become not only collaborators but also competitors. The purpose of this study is to compare the differences in price discounts between Third-Party Marketplace (3PM) sellers and Fulfilled by Walmart (FBW) sellers on Walmart.com over time. The results, based on data collected in the form of the daily prices of 54,162 products offered by Walmart during the holiday season, show that the average discount for 3PM sellers is significantly lower than that for FBW sellers. In addition, across product categories, FBW sellers had significantly higher average discounts than 3PM sellers in the electronics, housewares, and toys categories. Furthermore, the level of discount began to increase in early November and peaked around Christmas. Our findings may help retailers manage their dealings with these third-party sellers while also helping consumers to optimize their purchasing decisions.https://doi.org/10.1177/21582440211024179
spellingShingle Ya-Ling Chiu
Yuan-Teng Hsu
Xiaoyu Mao
Jying-Nan Wang
An Empirical Study of Holiday Season Discounts: A Comparison Between Third-Party Marketplace Sellers and Fulfilled by Walmart Sellers
SAGE Open
title An Empirical Study of Holiday Season Discounts: A Comparison Between Third-Party Marketplace Sellers and Fulfilled by Walmart Sellers
title_full An Empirical Study of Holiday Season Discounts: A Comparison Between Third-Party Marketplace Sellers and Fulfilled by Walmart Sellers
title_fullStr An Empirical Study of Holiday Season Discounts: A Comparison Between Third-Party Marketplace Sellers and Fulfilled by Walmart Sellers
title_full_unstemmed An Empirical Study of Holiday Season Discounts: A Comparison Between Third-Party Marketplace Sellers and Fulfilled by Walmart Sellers
title_short An Empirical Study of Holiday Season Discounts: A Comparison Between Third-Party Marketplace Sellers and Fulfilled by Walmart Sellers
title_sort empirical study of holiday season discounts a comparison between third party marketplace sellers and fulfilled by walmart sellers
url https://doi.org/10.1177/21582440211024179
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