The explosive growth of retail platforms over the past decade has resulted in a significant amount of customer and seller data that can be leveraged for advanced business analytics. As a result, the management of retail platforms with business analytics capabilities has garnered increased attention in the field of operations management. Despite the recognition of the importance of business analytics techniques for retail platforms, a systematic study of their operations is lacking in the literature. Based on our observations of the industrial practice and understanding of the academic literature, we attempt to address this gap by proposing a framework that broadly categorizes retail platform management into three key themes: demand-side management, supply-side management, and matching. For each theme, we identify critical topics, discuss the current practices of platforms, and review relevant literature. We also propose future research questions with directions for the initial modeling and solution strategy, together with applicable data sources and potential insights. At last, to facilitate future research, we provide a roadmap and datasets for further exploration of business analytics applications of retail platforms. Overall, this paper lays a strong foundation for researchers to delve deeper into the exciting and constantly evolving field of retail platform analytics.
AbhishekVJerathKZhangZJ (2016) Agency selling or reselling? Channel structures in electronic retailing. Management Science62(8): 2259–2280.
2.
AcimovicJGravesSC (2017) Mitigating spillover in online retailing via replenishment. Manufacturing & Service Operations Management19(3): 419–436.
3.
AhmadvandAKallumadiSJavedFAgichteinE (2020) Jointmap: Joint query intent understanding for modeling intent hierarchies in e-commerce search. Proceedings of the 43rd International ACM SIGIR Conference on Research and Development in Information Retrieval. 1509–1512.
4.
AlptekinoluAGrasasA (2014) When to carry eccentric products? Optimal retail assortment under consumer returns. Production and Operations Management23(5): 877–892.
5.
AltugMSAydinliyimT (2016) Counteracting strategic purchase deferrals: The impact of online retailers’ return policy decisions. Manufacturing & Service Operations Management18(3): 376–392.
6.
BaardmanLBoroujeniSBCohen-HillelTPanchamgamKPerakisG (2023) Detecting customer trends for optimal promotion targeting. Manufacturing & Service Operations Management25(2): 448–467.
7.
BaeJChenLYaoS (2022) Service capacity and price promotion wars. Management Science68(12): 8757–8772.
8.
BertiniMOfekEArielyD (2009) The impact of add-on features on consumer product evaluations. Journal of Consumer Research36(1): 17–28.
9.
BesbesOScarsiniM (2018) On information distortions in online ratings. Operations Research66(3): 597–610.
10.
BirgeJCandoganOChenHSabanD (2021) Optimal commissions and subscriptions in networked markets. Manufacturing & Service Operations Management23(3): 569–588.
BrayRL (2023) Operational transparency: Showing when work gets done. Manufacturing & Service Operations Management25(3): 812–826.
13.
CachonGPDanielsKMLobelR (2017) The role of surge pricing on a service platform with self-scheduling capacity. Manufacturing & Service Operations Management19(3): 368–384.
14.
ChenCCLinYC (2018) What drives live-stream usage intention? The perspectives of flow, entertainment, social interaction, and endorsement. Telematics and Informatics35(1): 293–303.
15.
ChenLNanGLiM (2018) Wholesale pricing or agency pricing on online retail platforms: The effects of customer loyalty. International Journal of Electronic Commerce22(4): 576–608.
16.
ChenPYHongYLiuY (2018) The value of multidimensional rating systems: Evidence from a natural experiment and randomized experiments. Management Science64(10): 4629–4647.
17.
ChenSYanZLimYF (2024) Managing the personalized order-holding problem in online retailing. Manufacturing & Service Operations Management26(1): 47–65.
18.
ChenXLuoZWangX (2022) Commission pricing strategy on online retail platforms: Power and dependence in triad. IEEE Transactions on Engineering Management69(6): 2769–2780.
19.
ChenYXieJ (2008) Online consumer review: Word-of-mouth as a new element of marketing communication mix. Management Science54(3): 477–491.
20.
ChenYYaoS (2017) Sequential search with refinement: Model and application with click-stream data. Management Science63(12): 4345–4365.
21.
ChenYJDaiTG KorpeogluCKrpeoluESahinOTangCSXiaoS (2020) OM forum—innovative online platforms: Research opportunities. Manufacturing & Service Operations Management22(3): 430–445.
CohenMCLeungNHZPanchamgamKPerakisGSmithA (2017) The impact of linear optimization on promotion planning. Operations Research65(2): 446–468.
28.
CookeADJSujan. H. SujanMWeitzBA (2002) Marketing the unfamiliar: The role of context and item-specific information in electronic agent recommendations. Journal of Marketing Research39(4): 488–497.
29.
CuiRLiMLiQ (2020) Value of high-quality logistics: Evidence from a clash between SF express and alibaba. Management Science66(9): 3879–3902.
30.
CuiRLiMZhangS (2022) AI and procurement. Manufacturing & Service Operations Management24(2): 691–706.
31.
CuiRZhangWZhengZ (2022) Market thickness and delivery efficiency in food delivery platforms, Working paper.
32.
DePHuYRahmanMS (2010) Technology usage and online sales: An empirical study. Management Science56(11): 1930–1945.
33.
DerakhshanMGolrezaeiNManshadiVMirrokniV (2022) Product ranking on online platforms. Management Science68(6): 4024–4041.
34.
DeshpandeVPendemPK (2023) Logistics performance, ratings, and its impact on customer purchasing behavior and sales in e-commerce platforms. Manufacturing & Service Operations Management25(3): 827–845.
35.
DzyaburaDJagabathulaS (2018) Offline assortment optimization in the presence of an online channel. Management Science64(6): 2767–2786.
EttlMHarshaPPapushAPerakisG (2020) A data-driven approach to personalized bundle pricing and recommendation. Manufacturing & Service Operations Management22(3): 461–480.
38.
FisherMLGallinoSXuJJ (2019) The value of rapid delivery in omnichannel retailing. Journal of Marketing Research56(5): 732–748.
39.
GallinoSMorenoA (2018) The value of fit information in online retail: Evidence from a randomized field experiment. Manufacturing & Service Operations Management20(4): 767–787.
40.
GenchevETodorovaG (2017) Sales promotion activities–effective tool of marketing communication mix. Trakia Journal of Sciences15(1): 181–185.
41.
GengXTanYWeiL (2018) How add-on pricing interacts with distribution contracts. Production and Operations Management27(4): 605–623.
42.
GhoseAIpeirotisPGLiB (2014) Examining the impact of ranking on consumer behavior and search engine revenue. Management Science60(7): 1632–1654.
43.
GhoseAYangS (2009) An empirical analysis of search engine advertising: Sponsored search in electronic markets. Management Science55(10): 1605–1622.
44.
GuoXYuYAllonGWangMZhangZ (2021) RiRiShun logistics: Home appliance delivery data for the 2021 manufacturing & service operations management data-driven research challenge. Manufacturing & Service Operations Management. DOI: https://doi.org/10.1287/msom.2021.0994.
45.
GuoXZhengSYuYZhangF (2021) Optimal bundling strategy for a retail platform under agency selling. Production and Operations Management30(7): 2273–2284.
46.
GuoYChengZNieLWangYMaJKankanhalliM (2019) Attentive long short-term preference modeling for personalized product search. ACM Transactions on Information Systems37(2): 1–27.
47.
HaAYLuoHShangW (2022) Supplier encroachment, information sharing, and channel structure in online retail platforms. Production and Operations Management31(3): 1235–1251.
48.
HaAYTongSWangY (2022) Channel structures of online retail platforms. Manufacturing & Service Operations Management24(3): 1547–1561.
49.
HagiuAWrightJ (2015) Marketplace or reseller?Management Science61(1): 184–203.
50.
HagiuAWrightJ (2015) Multi-sided platforms. International Journal of Industrial Organization43: 162–174.
51.
HagiuAWrightJ (2020) Platforms and the exploration of new products. Management Science66(4): 1527–1543.
52.
HosanagarKFlederDLeeDBujaA (2014) Will the global village fracture into tribes? Recommender systems and their effects on consumer fragmentation. Management Science60(4): 805–823.
53.
HuHZhengQPanXA (2022) Agency or wholesale? The role of retail pass-through. Management Science68(10): 7538–7554.
54.
HuangZZengDDChenH (2007) Analyzing consumerproduct graphs: Empirical findings and applications in recommender systems. Management Science53(7): 1146–1164.
55.
JiangHQiXSunH (2014) Choice-based recommender systems: A unified approach to achieving relevancy and diversity. Operations Research62(5): 973–993.
56.
JiangYGuoH (2015) Design of consumer review systems and product pricing. Information Systems Research26(4): 714–730.
57.
KhanTHassanMIslam ZarifMIRabbaniM (2021) PR-SEO: An innovative approach for product ranking in e-commerce. Advances in Electrical and Computer TechnologiesSpringer: 127–135.
LaiGLiuHXiaoWZhaoX (2022) “Fulfilled by amazon”: A strategic perspective of competition at the e-commerce platform. Manufacturing & Service Operations Management24(3): 1406–1420.
63.
LappasTSabnisGValkanasG (2016) The impact of fake reviews on online visibility: A vulnerability assessment of the hotel industry. Information Systems Research27(4): 940–961.
64.
L’EcuyerPMailléPStier-MosesNETuffinB (2017) Revenue-maximizing rankings for online platforms with quality-sensitive consumers. Operations Research65(2): 408–423.
65.
LeeJSZhuD (2012) Shilling attack detection—A new approach for a trustworthy recommender system. INFORMS Journal on Computing24(1): 117–131.
66.
LeiYJasinSUichancoJVakhutinskyA (2022) Joint product framing (display, ranking, pricing) and order fulfillment under the multinomial logit model for e-commerce retailers. Manufacturing & Service Operations Management24(3): 1529–1546.
67.
LiLChenJRaghunathanS (2018) Recommender system rethink: Implications for an electronic marketplace with competing manufacturers. Information Systems Research29(4): 1003–1023.
68.
LiM (2019) Overconfident distribution channels. Production and Operations Management28(6): 1347–1365.
69.
LiMLiuY (2021) Beneficial product returns in supply chains. Production and Operations Management30(11): 3849–3855.
70.
LinYYaoDChenX (2021) Happiness begets money: Emotion and engagement in live streaming. Journal of Marketing Research58(3): 417–438.
71.
LiuZZhangDJZhangF (2021) Information sharing on retail platforms. Manufacturing & Service Operations Management23(3): 606–619.
72.
LuSYaoDChenXGrewalR (2021) Do larger audiences generate greater revenues under pay what you want? Evidence from a live streaming platform. Marketing Science40(5): 964–984.
73.
LucaMZervasG (2016) Fake it till you make it: Reputation, competition, and yelp review fraud. Management Science62(12): 3412–3427.
74.
MantinBKrishnanHDharT (2014) The strategic role of third-party marketplaces in retailing. Production and Operations Management23(11): 1937–1949.
75.
Martínez-de AlbénizVPintoCAmorimP (2022) Driving supply to marketplaces: Optimal platform pricing when suppliers share inventory. Manufacturing & Service Operations Management24(4): 2367–2386.
76.
MišićVVPerakisG (2020) Data analytics in operations management: A review. Manufacturing & Service Operations Management22(1): 158–169.
MorathFMünsterJ (2018) Online shopping and platform design with ex ante registration requirements. Management Science64(1): 360–380.
79.
PanRFengJZhaoZ (2022) Fly with the wings of live-stream selling—channel strategies with/without switching demand. Production and Operations Management31(9): 3387–3399.
80.
ParkerGGVan AlstyneMW (2005) Two-sided network effects: A theory of information product design. Management Science51(10): 1494–1504.
81.
PetersenJAKumarV (2009) Are product returns a necessary evil? Antecedents and consequences. Journal of Marketing73(3): 35–51.
RietveldJSchillingMA (2021) Platform competition: A systematic and interdisciplinary review of the literature. Journal of Management47(6): 1528–1563.
88.
SalariNLiuSShenZJM (2022) Real-time delivery time forecasting and promising in online retailing: When will your package arrive?. Manufacturing & Service Operations Management24(3): 1421–1436.
SenecalSNantelJ (2004) The influence of online product recommendations on consumers’ online choices. Journal of Retailing80(2): 159–169.
91.
ShahDKumarVQuYChenS (2012) Unprofitable cross-buying: Evidence from consumer and business markets. Journal of Marketing76(3): 78–95.
92.
ShenMTangCSWuD, Yuan R and Zhou W (2024) JD.com: Transaction-level data for the 2020 msom data driven research challenge. Manufacturing & Service Operations Management26(1): 2–10.
93.
Simchi-LeviDSunRZhangH (2022) Online learning and optimization for revenue management problems with add-on discounts. Management Science68(10): 7402–7421.
94.
SmedlundA (2012) Value cocreation in service platform business models. Service Science4(1): 79–88.
95.
SongWChenJLiW (2021) Spillover effect of consumer awareness on third parties’ selling strategies and retailers’ platform openness. Information Systems Research32(1): 172–193.
96.
SongWLiWGengS (2020) Effect of online product reviews on third parties’ selling on retail platforms. Electronic Commerce Research and Applications39: 100900.
SunHChenJFanM (2021) Effect of live chat on traffic-to-sales conversion: Evidence from an online marketplace. Production and Operations Management30(5): 1201–1219.
99.
SunHFanMTanY (2020) An empirical analysis of seller advertising strategies in an online marketplace. Information Systems Research31(1): 37–56.
100.
SunLLyuGYuYTeoCP (2020) Fulfillment by Amazon versus fulfillment by seller: An interpretable risk-adjusted fulfillment model. Naval Research Logistics67(8): 627–645.
101.
SunLLyuGYuYTeoCP (2021) Cross-border e-commerce data set: Choosing the right fulfillment option. Manufacturing & Service Operations Management23(5): 1297–1313.
102.
SunM (2012) How does the variance of product ratings matter?Management Science58(4): 696–707.
103.
TianLVakhariaAJTanYXuY (2018) Marketplace, reseller, or hybrid: Strategic analysis of an emerging e-commerce model. Production and Operations Management27(8): 1595–1610.
104.
TirunillaiSTellisGJ (2014) Mining marketing meaning from online chatter: Strategic brand analysis of big data using latent dirichlet allocation. Journal of Marketing Research51(4): 463–479.
105.
ToubiaOStephenAT (2013) Intrinsic vs. image-related utility in social media: Why do people contribute content to twitter?Marketing Science32(3): 368–392.
106.
ÜlküMADaileyLCYayla-KüllüHM (2013) Serving fraudulent consumers? The impact of return policies on retailer’s profitability. Service Science5(4): 296–309.
107.
UrsuRM (2018) The power of rankings: Quantifying the effect of rankings on online consumer search and purchase decisions. Marketing Science37(4): 530–552.
108.
Van GyselC (2017) Remedies against the vocabulary gap in information retrieval, PhD thesis.
109.
VargasSCastellsP (2011) Rank and relevance in novelty and diversity metrics for recommender systems. Proceedings of the Fifth ACM Conference on Recommender Systems109–116.
110.
WuRQiuC (2016) Seller manipulation of consumer reviews under competition. 2016 49th Hawaii International Conference on System Sciences (HICSS). IEEE, 3575–3583.
111.
XiaoBBenbasatI (2007) E-commerce product recommendation agents: Use, characteristics, and impact. MIS Quarterly31(1): 137–209.
112.
XieXHuPYuJDaiB (2021) Impact of capacity on the supplier’s distribution channel selection in facing a retail platform. Naval Research Logistics68(6): 837–854.
113.
YangBYangSDuttaS (2022) Platform service offering to business customers: Strategic considerations in engendering seller use of marketing tools. Marketing Science41(2): 361–379.
114.
YildirimPGal-OrEGeylaniT (2013) User-generated content and bias in news media. Management Science59(12):2655–2666.
115.
ZhangDJDaiHDongLQiFZhangNLiuXLiuZYangJ (2020) The long-term and spillover effects of price promotions on retailing platforms: Evidence from a large randomized experiment on Alibaba. Management Science66(6): 2589–2609.
116.
ZhangDJDaiHDongLWuQGuoLLiuX (2019) The value of pop-up stores on retailing platforms: Evidence from a field experiment with Alibaba. Management Science65(11): 5142–5151.
117.
ZhangKSarvaryM (2015) Differentiation with user-generated content. Management Science61(4): 898–914.
118.
ZhangXYaoYZhangJFangC (2023) Post-promotion redemption, exposure, and spillover effects of electronic coupons: An empirical analysis. Production and Operations Management32(2): 603–617.
119.
ZhuFZhangX (2010) Impact of online consumer reviews on sales: The moderating role of product and consumer characteristics. Journal of Marketing74(2): 133–148.
Supplementary Material
Please find the following supplemental material available below.
For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.
For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.
