{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,3,26]],"date-time":"2026-03-26T23:38:59Z","timestamp":1774568339875,"version":"3.50.1"},"reference-count":57,"publisher":"MDPI AG","issue":"1","license":[{"start":{"date-parts":[[2025,1,6]],"date-time":"2025-01-06T00:00:00Z","timestamp":1736121600000},"content-version":"vor","delay-in-days":0,"URL":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"funder":[{"name":"National Natural Science Foundation of China","award":["71873026"],"award-info":[{"award-number":["71873026"]}]}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Systems"],"abstract":"<jats:p>This paper analyzes how consumer preferences for eco-friendly private labels affect platform selling formats and manufacturer channel strategies. We construct a game-theoretic model that encompasses both an e-commerce platform and a manufacturer. In this model, the platform chooses its selling format\u2014either wholesale or agency\u2014while the manufacturer determines whether to launch an online direct channel. Our analysis takes into account consumer preferences for both product brands and sales channels. We compare and analyze the equilibrium outcomes across four different scenarios, leading to the following conclusions: (1) When the platform utilizes the wholesale selling format, the manufacturer is consistently motivated to launch the direct channel if the costs associated with it are low. Conversely, when the platform employs the agency selling format, the manufacturer\u2019s decision to establish an online direct marketing channel depends on the relative strength of consumers\u2019 eco-friendly and channel preferences. (2) The platform\u2019s choice of selling format is affected by the manufacturer\u2019s channel strategy, leading the platform to modify its selling format based on varying manufacturer channel approaches. (3) The choices of the platform\u2019s selling format and the manufacturer\u2019s channel strategy are not always in conflict. When consumer preferences for the manufacturer\u2019s direct channel are strong and the cost of introducing it is moderate, the platform\u2019s decision to adopt the agency selling format can create a win-win outcome for both the platform and the manufacturer. And the establishment of online channels by manufacturers further enhances the sustainable growth of eco-friendly products.<\/jats:p>","DOI":"10.3390\/systems13010036","type":"journal-article","created":{"date-parts":[[2025,1,6]],"date-time":"2025-01-06T08:08:52Z","timestamp":1736150932000},"page":"36","update-policy":"https:\/\/doi.org\/10.3390\/mdpi_crossmark_policy","source":"Crossref","is-referenced-by-count":2,"title":["Balancing E-Commerce Platform and Manufacturer Goals in Sustainable Supply Chains: The Impact of Eco-Friendly Private Labels"],"prefix":"10.3390","volume":"13","author":[{"given":"Zhiheng","family":"Liu","sequence":"first","affiliation":[{"name":"School of Business Administration, Northeastern University, Shenyang 110169, China"}]},{"given":"Xiangcheng","family":"Cui","sequence":"additional","affiliation":[{"name":"Department of Culture and Tourism of Heilongjiang Province, Harbin 150000, China"}]},{"given":"Yuanyuan","family":"Ji","sequence":"additional","affiliation":[{"name":"School of Business Administration, Northeastern University, Shenyang 110169, China"}]}],"member":"1968","published-online":{"date-parts":[[2025,1,6]]},"reference":[{"key":"ref_1","unstructured":"(2024, December 09). Statista. Available online: http:\/\/www.statista.com\/forecasts\/1283912\/global-revenue-of-the-e-commerce-market-country."},{"key":"ref_2","unstructured":"(2024, December 30). Momentum Commerce. Available online: https:\/\/www.momentumcommerce.com\/amazons-private-label-market-share-shrinks-by-6-year-over-year-in-q1-2024\/?trk=public_post_comment-text."},{"key":"ref_3","unstructured":"(2024, December 30). Tencent. Available online: https:\/\/news.qq.com\/rain\/a\/20230318A022BC00."},{"key":"ref_4","unstructured":"(2024, December 30). Simon-Kucher. Available online: https:\/\/www.simon-kucher.com\/en\/insights\/how-make-sustainability-growth-driver."},{"key":"ref_5","doi-asserted-by":"crossref","first-page":"2259","DOI":"10.1287\/mnsc.2015.2230","article-title":"Agency selling or reselling? Channel structures in electronic retailing","volume":"62","author":"Abhishek","year":"2016","journal-title":"Manag. Sci."},{"key":"ref_6","doi-asserted-by":"crossref","unstructured":"Huang, L.C., Huang, Z.S., and Liu, B. (2022). Interacting with strategic waiting for store brand: Online selling format selection. J. Retail. Consum. Serv., 67.","DOI":"10.1016\/j.jretconser.2022.102987"},{"key":"ref_7","doi-asserted-by":"crossref","first-page":"1151","DOI":"10.1093\/restud\/rdx007","article-title":"The agency model and MFN clauses","volume":"84","author":"Johnson","year":"2017","journal-title":"Rev. Econ. Stud."},{"key":"ref_8","doi-asserted-by":"crossref","first-page":"659","DOI":"10.1016\/j.ejor.2022.06.002","article-title":"Eliminate demand information disadvantage in a supplier encroachment supply chain with information acquisition","volume":"305","author":"Chen","year":"2023","journal-title":"Eur. J. Oper. Res."},{"key":"ref_9","doi-asserted-by":"crossref","unstructured":"Luo, H., Zhong, L., and Nie, J. (2022). Quality and distribution channel selection on a hybrid platform. Transp. Res. Part E Logist. Transp. Rev., 163.","DOI":"10.1016\/j.tre.2022.102750"},{"key":"ref_10","doi-asserted-by":"crossref","first-page":"141","DOI":"10.1016\/j.ejor.2024.03.036","article-title":"The impact of platform\u2019s information sharing on manufacturer encroachment and selling format decision","volume":"317","author":"Gong","year":"2024","journal-title":"Eur. J. Oper. Res."},{"key":"ref_11","doi-asserted-by":"crossref","first-page":"587","DOI":"10.1016\/j.ejor.2023.06.030","article-title":"Should competing suppliers with dual-channel supply chains adopt agency selling in an e-commerce platform?","volume":"312","author":"Matsui","year":"2024","journal-title":"Eur. J. Oper. Res."},{"key":"ref_12","doi-asserted-by":"crossref","first-page":"134","DOI":"10.1016\/j.ejor.2019.07.003","article-title":"Agency selling or reselling: E-tailer information sharing with supplier offline entry","volume":"280","author":"Zhang","year":"2020","journal-title":"Eur. J. Oper. Res."},{"key":"ref_13","doi-asserted-by":"crossref","first-page":"272","DOI":"10.1016\/j.tre.2018.08.004","article-title":"Strategic interplay between store brand introduction and online direct channel introduction","volume":"118","author":"Li","year":"2018","journal-title":"Transp. Res. Part E Logist. Transp. Rev."},{"key":"ref_14","doi-asserted-by":"crossref","unstructured":"Liu, P., Yang, X., Zhang, R., and Liu, B. (2022). OEM\u2019s sales formats under e-commerce platform\u2019s private-label brand outsourcing strategies. Comput. Ind. Eng., 173.","DOI":"10.1016\/j.cie.2022.108708"},{"key":"ref_15","doi-asserted-by":"crossref","first-page":"509","DOI":"10.1111\/j.1430-9134.1995.00509.x","article-title":"Why retailers sell private labels","volume":"4","author":"Mills","year":"1995","journal-title":"J. Econ. Manag. Strat."},{"key":"ref_16","doi-asserted-by":"crossref","first-page":"591","DOI":"10.1287\/mksc.2013.0788","article-title":"National brand\u2019s response to store brands: Throw in the towel or fight back?","volume":"32","author":"Nasser","year":"2013","journal-title":"Mark. Sci."},{"key":"ref_17","doi-asserted-by":"crossref","first-page":"128","DOI":"10.1016\/j.ijpe.2016.12.024","article-title":"Premium store brand: Product development collaboration between retailers and national brand manufacturers","volume":"185","author":"Hara","year":"2017","journal-title":"Int. J. Prod. Econ."},{"key":"ref_18","doi-asserted-by":"crossref","unstructured":"Li, Y., Chu, M., and Bai, X. (2024). To fight or not? Product introduction and channel selection in the presence of a platform\u2019s private label. Transp. Res. Part E Logist. Transp. Rev., 181.","DOI":"10.1016\/j.tre.2023.103373"},{"key":"ref_19","doi-asserted-by":"crossref","first-page":"114","DOI":"10.1016\/j.ejor.2022.05.023","article-title":"Private label sourcing for an e-tailer with agency selling and service provision","volume":"305","author":"Li","year":"2023","journal-title":"Eur. J. Oper. Res."},{"key":"ref_20","doi-asserted-by":"crossref","first-page":"272","DOI":"10.1111\/poms.12220","article-title":"Does a store brand always hurt the manufacturer of a competing national brand?","volume":"24","author":"Ru","year":"2015","journal-title":"Prod. Oper. Manag."},{"key":"ref_21","doi-asserted-by":"crossref","unstructured":"Maesen, S. (2024). Introducing specialist private labels: How reducing manufacturers\u2019 competing assortment size affects retailer performance. Int. J. Res. Mark.","DOI":"10.1016\/j.ijresmar.2024.08.002"},{"key":"ref_22","doi-asserted-by":"crossref","unstructured":"Zhang, Z., Song, H., Gu, X., Shi, V., and Zhu, J. (2021). How to compete with a supply chain partner: Retailer\u2019s store brand vs. manufacturer\u2019s encroachment. Omega, 103.","DOI":"10.1016\/j.omega.2021.102412"},{"key":"ref_23","doi-asserted-by":"crossref","unstructured":"Wang, P., Guo, S., and Choi, H.Y. (2024). Economic and Environmental Implications of Introducing Green Own-Brand Products on E-Commerce Platforms. Sustainability, 16.","DOI":"10.3390\/su16177850"},{"key":"ref_24","doi-asserted-by":"crossref","unstructured":"Niu, B., Liu, J., Zhang, J., and Chen, K. (2024). Promised-delivery-time-driven reselling facing global platform\u2019s private label competition: Game analysis and data validation. Omega, 123.","DOI":"10.1016\/j.omega.2023.102990"},{"key":"ref_25","doi-asserted-by":"crossref","unstructured":"Shopova, R. (2023). Private labels in marketplaces. Int. J. Ind. Organ., 89.","DOI":"10.1016\/j.ijindorg.2023.102949"},{"key":"ref_26","doi-asserted-by":"crossref","unstructured":"Hemmati, M., Fatemi Ghomi, S.M.T., and Sajadieh, M.S. (2024). The impact of advertising and product quality on sales mode choice in the presence of private label. Int. J. Prod. Econ., 269.","DOI":"10.1016\/j.ijpe.2024.109164"},{"key":"ref_27","doi-asserted-by":"crossref","first-page":"1","DOI":"10.1287\/mnsc.49.1.1.12749","article-title":"Direct marketing, indirect profits: A strategic analysis of dual-channel supply-chain design","volume":"49","author":"Chiang","year":"2003","journal-title":"Manag. Sci."},{"key":"ref_28","doi-asserted-by":"crossref","first-page":"651","DOI":"10.1287\/mksc.1070.0280","article-title":"The bright side of supplier encroachment","volume":"26","author":"Arya","year":"2007","journal-title":"Mark. Sci."},{"key":"ref_29","doi-asserted-by":"crossref","first-page":"40","DOI":"10.1111\/j.1937-5956.2006.tb00002.x","article-title":"Boiling frogs: Pricing strategies for a manufacturer adding a direct channel that competes with the traditional channel","volume":"15","author":"Cattani","year":"2006","journal-title":"Prod. Oper. Manag."},{"key":"ref_30","doi-asserted-by":"crossref","first-page":"22","DOI":"10.1016\/j.jretai.2009.11.002","article-title":"Channel selection and coordination in dual-channel supply chains","volume":"86","author":"Cai","year":"2010","journal-title":"J. Retail."},{"key":"ref_31","doi-asserted-by":"crossref","first-page":"89","DOI":"10.1111\/poms.12210","article-title":"Supplier encroachment as an enhancement or a hindrance to nonlinear pricing","volume":"24","author":"Li","year":"2015","journal-title":"Prod. Oper. Manag."},{"key":"ref_32","doi-asserted-by":"crossref","first-page":"29","DOI":"10.1287\/mksc.1100.0586","article-title":"Internet channel entry: A strategic analysis of mixed channel structures","volume":"30","author":"Yoo","year":"2011","journal-title":"Mark. Sci."},{"key":"ref_33","doi-asserted-by":"crossref","first-page":"250","DOI":"10.1287\/msom.1120.0416","article-title":"When gray markets have silver linings: All-unit discounts, gray markets, and channel management","volume":"15","author":"Hu","year":"2013","journal-title":"M&SOM-Manuf. Serv. Oper. Manag."},{"key":"ref_34","doi-asserted-by":"crossref","first-page":"536","DOI":"10.1287\/msom.2018.0705","article-title":"Strategic inventory and supplier encroachment","volume":"21","author":"Guan","year":"2019","journal-title":"M&SOM-Manuf. Serv. Oper. Manag."},{"key":"ref_35","doi-asserted-by":"crossref","unstructured":"Zhang, J., Cao, Q., and He, X. (2020). Manufacturer encroachment with advertising. Omega-Int. J. Manag. Sci., 91.","DOI":"10.1016\/j.omega.2018.12.002"},{"key":"ref_36","doi-asserted-by":"crossref","first-page":"1173","DOI":"10.1111\/poms.12977","article-title":"Channel selection and contracting in the presence of a retail platform","volume":"28","author":"Shen","year":"2019","journal-title":"Prod. Oper. Manag."},{"key":"ref_37","doi-asserted-by":"crossref","unstructured":"Dong, S., Qin, Z., and Yan, Y. (2022). Effects of online-to-offline spillovers on pricing and quality strategies of competing firms. Int. J. Prod. Econ., 244.","DOI":"10.1016\/j.ijpe.2021.108376"},{"key":"ref_38","doi-asserted-by":"crossref","first-page":"33","DOI":"10.1016\/j.jretai.2017.07.001","article-title":"Strategic choice of sales channel and business model for the hotel supply chain","volume":"94","author":"Ye","year":"2018","journal-title":"J. Retail."},{"key":"ref_39","doi-asserted-by":"crossref","first-page":"2002","DOI":"10.1111\/poms.13955","article-title":"Manufacturer encroachment with an e-commerce division","volume":"32","author":"Shi","year":"2023","journal-title":"Prod. Oper. Manag."},{"key":"ref_40","doi-asserted-by":"crossref","first-page":"231","DOI":"10.1016\/j.ejor.2019.08.026","article-title":"Strategic contracting and hybrid use of agency and wholesale contracts in e-commerce platforms","volume":"281","author":"Zennyo","year":"2020","journal-title":"Eur. J. Oper. Res."},{"key":"ref_41","doi-asserted-by":"crossref","first-page":"684","DOI":"10.1111\/joie.12301","article-title":"Platform encroachment and own-content bias","volume":"70","author":"Zennyo","year":"2022","journal-title":"J. Ind. Econ."},{"key":"ref_42","doi-asserted-by":"crossref","first-page":"184","DOI":"10.1287\/mnsc.2014.2042","article-title":"Marketplace or reseller?","volume":"61","author":"Hagiu","year":"2015","journal-title":"Manag. Sci."},{"key":"ref_43","doi-asserted-by":"crossref","first-page":"763","DOI":"10.25300\/MISQ\/2017\/41.3.05","article-title":"Platform or wholesale? A strategic tool for online retailers to benefit from third-party information","volume":"41","author":"Kwark","year":"2017","journal-title":"MIS Q."},{"key":"ref_44","doi-asserted-by":"crossref","unstructured":"Liu, W., Yan, X., Li, X., and Wei, W. (2020). The impacts of market size and data-driven marketing on the sales mode selection in an Internet platform based supply chain. Transp. Res. Part E Logist. Transp. Rev., 136.","DOI":"10.1016\/j.tre.2020.101914"},{"key":"ref_45","doi-asserted-by":"crossref","first-page":"65","DOI":"10.1016\/j.ejor.2017.11.011","article-title":"Strategic introduction of the marketplace channel under spillovers from online to offline sales","volume":"267","author":"Yan","year":"2018","journal-title":"Eur. J. Oper. Res."},{"key":"ref_46","doi-asserted-by":"crossref","first-page":"928","DOI":"10.1016\/j.ejor.2018.07.023","article-title":"Contract and product quality in platform selling","volume":"272","author":"Zhang","year":"2019","journal-title":"Eur. J. Oper. Res."},{"key":"ref_47","doi-asserted-by":"crossref","unstructured":"Alaei, A.M., Taleizadeh, A.A., and Rabbani, M. (2022). Marketplace, reseller, or web-store channel: The impact of return policy and cross-channel spillover from marketplace to web-store. J. Retail. Consum. Serv., 65.","DOI":"10.1016\/j.jretconser.2020.102271"},{"key":"ref_48","doi-asserted-by":"crossref","first-page":"1595","DOI":"10.1111\/poms.12885","article-title":"Marketplace, reseller, or hybrid: Strategic analysis of an emerging e-commerce model","volume":"27","author":"Tian","year":"2018","journal-title":"Prod. Oper. Manag."},{"key":"ref_49","doi-asserted-by":"crossref","first-page":"986","DOI":"10.1016\/j.ejor.2022.03.021","article-title":"Product distribution strategy in response to the platform retailer\u2019s marketplace introduction","volume":"303","author":"Wei","year":"2022","journal-title":"Eur. J. Oper. Res."},{"key":"ref_50","doi-asserted-by":"crossref","first-page":"1547","DOI":"10.1287\/msom.2021.1011","article-title":"Channel structures of online retail platforms","volume":"24","author":"Ha","year":"2022","journal-title":"M&SOM-Manuf. Serv. Oper. Manag."},{"key":"ref_51","doi-asserted-by":"crossref","unstructured":"Xi, X., and Zhang, Y. (2023). The interplay between marketplace channel addition and pricing strategy in an e-commerce supply chain. Int. J. Prod. Econ., 258.","DOI":"10.1016\/j.ijpe.2023.108807"},{"key":"ref_52","doi-asserted-by":"crossref","first-page":"119","DOI":"10.1007\/s11151-022-09893-8","article-title":"Hybrid marketplaces with free entry of sellers","volume":"62","author":"Etro","year":"2023","journal-title":"Rev. Ind. Organ."},{"key":"ref_53","doi-asserted-by":"crossref","first-page":"83","DOI":"10.1111\/1756-2171.12431","article-title":"Marketmaking middlemen","volume":"54","author":"Gautier","year":"2023","journal-title":"Rand J. Econ."},{"key":"ref_54","doi-asserted-by":"crossref","first-page":"297","DOI":"10.1111\/1756-2171.12408","article-title":"Should platforms be allowed to sell on their own marketplaces?","volume":"53","author":"Hagiu","year":"2022","journal-title":"Rand J. Econ."},{"key":"ref_55","doi-asserted-by":"crossref","first-page":"203","DOI":"10.1111\/j.1540-5915.2010.00265.x","article-title":"Supply chain conflict due to store brands: The value of wholesale price commitment in a retail supply chain","volume":"41","author":"Groznik","year":"2010","journal-title":"Decis. Sci."},{"key":"ref_56","doi-asserted-by":"crossref","first-page":"1235","DOI":"10.1111\/poms.13607","article-title":"Supplier encroachment, information sharing, and channel structure in online retail platforms","volume":"31","author":"Ha","year":"2022","journal-title":"Prod. Oper. Manag."},{"key":"ref_57","doi-asserted-by":"crossref","unstructured":"Zhuo, W., Peng, J., and Wang, J. (2024). Game theoretical analysis of incumbent platform investment and the supplier entry strategies in an e-supply chain. Int. J. Prod. Econ., 273.","DOI":"10.1016\/j.ijpe.2024.109234"}],"container-title":["Systems"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/www.mdpi.com\/2079-8954\/13\/1\/36\/pdf","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2025,10,8]],"date-time":"2025-10-08T10:23:45Z","timestamp":1759919025000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.mdpi.com\/2079-8954\/13\/1\/36"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2025,1,6]]},"references-count":57,"journal-issue":{"issue":"1","published-online":{"date-parts":[[2025,1]]}},"alternative-id":["systems13010036"],"URL":"https:\/\/doi.org\/10.3390\/systems13010036","relation":{},"ISSN":["2079-8954"],"issn-type":[{"value":"2079-8954","type":"electronic"}],"subject":[],"published":{"date-parts":[[2025,1,6]]}}}