Prediction and Optimization for Multi-Product Marketing Resource Allocation in Cross-Border E-Commerce

In cross-border e-commerce, effective marketing resource allocation is crucial due to the complexity introduced by diverse product categories, regional differences, and competition among category managers. Current methods either overlook these constraints or fail to enforce them efficiently due to c...

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Main Authors: Yi Xie, Heng-Qing Ye, Wenbin Zhu
Format: Article
Language:English
Published: MDPI AG 2025-06-01
Series:Journal of Theoretical and Applied Electronic Commerce Research
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Online Access:https://www.mdpi.com/0718-1876/20/2/124
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author Yi Xie
Heng-Qing Ye
Wenbin Zhu
author_facet Yi Xie
Heng-Qing Ye
Wenbin Zhu
author_sort Yi Xie
collection DOAJ
description In cross-border e-commerce, effective marketing resource allocation is crucial due to the complexity introduced by diverse product categories, regional differences, and competition among category managers. Current methods either overlook these constraints or fail to enforce them efficiently due to computational challenges. We propose a two-stage optimization framework that integrates predictive models with constrained optimization. In the first stage, predictive models estimate user purchase probabilities and determine upper bounds on product-specific sending volumes. In the second stage, the resource allocation problem is formulated as a large-scale integer programming model, which is then transformed into a minimum-cost flow problem to ensure computational efficiency while preserving solution optimality. Experiments on real-world data show that our framework significantly outperforms baseline strategies, achieving a 14.48% increase in order volume and revenue improvements ranging from 0.19% to 43.91%. The minimum-cost flow algorithm consistently outperforms the greedy approach, especially in large-scale instances. The proposed framework enables scalable and constraint-compliant marketing resource allocation in cross-border e-commerce. It not only improves sales performance but also ensures strict adherence to operational constraints, making it well-suited for large-scale commercial deployment.
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spelling doaj-art-31a2601721ec421b8c954e06f19f552c2025-08-20T03:27:23ZengMDPI AGJournal of Theoretical and Applied Electronic Commerce Research0718-18762025-06-0120212410.3390/jtaer20020124Prediction and Optimization for Multi-Product Marketing Resource Allocation in Cross-Border E-CommerceYi Xie0Heng-Qing Ye1Wenbin Zhu2Faculty of Business, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong SAR, ChinaFaculty of Business, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong SAR, ChinaSchool of Business Administration, South China University of Technology, Guangzhou 510640, ChinaIn cross-border e-commerce, effective marketing resource allocation is crucial due to the complexity introduced by diverse product categories, regional differences, and competition among category managers. Current methods either overlook these constraints or fail to enforce them efficiently due to computational challenges. We propose a two-stage optimization framework that integrates predictive models with constrained optimization. In the first stage, predictive models estimate user purchase probabilities and determine upper bounds on product-specific sending volumes. In the second stage, the resource allocation problem is formulated as a large-scale integer programming model, which is then transformed into a minimum-cost flow problem to ensure computational efficiency while preserving solution optimality. Experiments on real-world data show that our framework significantly outperforms baseline strategies, achieving a 14.48% increase in order volume and revenue improvements ranging from 0.19% to 43.91%. The minimum-cost flow algorithm consistently outperforms the greedy approach, especially in large-scale instances. The proposed framework enables scalable and constraint-compliant marketing resource allocation in cross-border e-commerce. It not only improves sales performance but also ensures strict adherence to operational constraints, making it well-suited for large-scale commercial deployment.https://www.mdpi.com/0718-1876/20/2/124cross-border e-commerceproduct push notificationmachine learningpredictive modelinteger programmingminimum-cost flow
spellingShingle Yi Xie
Heng-Qing Ye
Wenbin Zhu
Prediction and Optimization for Multi-Product Marketing Resource Allocation in Cross-Border E-Commerce
Journal of Theoretical and Applied Electronic Commerce Research
cross-border e-commerce
product push notification
machine learning
predictive model
integer programming
minimum-cost flow
title Prediction and Optimization for Multi-Product Marketing Resource Allocation in Cross-Border E-Commerce
title_full Prediction and Optimization for Multi-Product Marketing Resource Allocation in Cross-Border E-Commerce
title_fullStr Prediction and Optimization for Multi-Product Marketing Resource Allocation in Cross-Border E-Commerce
title_full_unstemmed Prediction and Optimization for Multi-Product Marketing Resource Allocation in Cross-Border E-Commerce
title_short Prediction and Optimization for Multi-Product Marketing Resource Allocation in Cross-Border E-Commerce
title_sort prediction and optimization for multi product marketing resource allocation in cross border e commerce
topic cross-border e-commerce
product push notification
machine learning
predictive model
integer programming
minimum-cost flow
url https://www.mdpi.com/0718-1876/20/2/124
work_keys_str_mv AT yixie predictionandoptimizationformultiproductmarketingresourceallocationincrossborderecommerce
AT hengqingye predictionandoptimizationformultiproductmarketingresourceallocationincrossborderecommerce
AT wenbinzhu predictionandoptimizationformultiproductmarketingresourceallocationincrossborderecommerce