MBG (if the net salvage value is positive) is the dominant choice for retailer’s channel, and the manufacturer may offer an MBG even if the net salvage value is negative
The O2O strategy of “ship-to-store” can effectively improve the overall sales dispersion of retailers, where the lowest-selling products contribute the most
Present study
M-D
√
√
√
√
The handling loss with returns and the customer return cost for each channel are critical factors that a retailer or manufacturer should consider when choosing an MBG or a DMBG return strategy. Moreover, the retailer should cooperate with the manufacturer to establish an O2O omnichannel to make greater use of the convenience and advantages of the retail channel
Decision is considered (√) or not considered (×). Channel structure: manufacturer’s dual channel (M-D; manufacturer’s dual channel in which the manufacturer operates a direct channel and the retailer operates a retail channel); retailer’s dual channel (R-D; retailer’s dual channel in which the retailer operates both direct channel and retail channel or a retailer operates a direct channel while another retailer operates a retail channel); duopoly (D; single channel of duopoly); Monopoly (M; single channel of monopoly). Pricing: uniform pricing and nonuniform pricing strategies are considered (√) or not considered (×).