Platform-based retailing markets, such as Amazon, operate in a hybrid mode, which contains both reselling and agency selling. Prior studies have only used theoretical models to discuss how to choose between reselling and agency selling. However, empirical interactions between these two selling modes have not been well studied. We analyze the relationship between reselling and agency selling, the moderating effect of spillovers and the popularity of agency selling by using panel vector auto-regression model. Notably, reselling and agency selling are mutually promotive as a 1 percent increase in sales in reselling (agency selling) upsurges sales in agency selling (reselling) by .052 (.047) percent. We show that different types of spillovers exert different impacts on the main effect. In addition, we find that the popularity of agency selling strengthens the positive relationship between reselling and agency selling. Our results provide important theoretical contributions and managerial implications.
Li, Qi; Wang, Quansheng; Song, Peijian; and Zhao, Yingnan, "Empirical view of interactions between reselling and agency selling in platform-based retailing" (2018). PACIS 2018 Proceedings. 107.