Direct Mail or Bonded Warehouse? Logistics Mode Selection in Cross-Border E-Commerce under Exchange Rate Risk
The rapid development of cross-border e-commerce (CBEC) has enabled more suppliers to expand into overseas markets, meeting increasingly diverse consumer demands. Selecting an effective logistics mode is a crucial issue for suppliers, yet uncertainty in demand and exchange rate fluctuations make thi...
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MDPI AG
2024-09-01
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| Series: | Journal of Theoretical and Applied Electronic Commerce Research |
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| Online Access: | https://www.mdpi.com/0718-1876/19/3/112 |
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| author | Xiaoyi Li Hui Yu Caihong Sun |
| author_facet | Xiaoyi Li Hui Yu Caihong Sun |
| author_sort | Xiaoyi Li |
| collection | DOAJ |
| description | The rapid development of cross-border e-commerce (CBEC) has enabled more suppliers to expand into overseas markets, meeting increasingly diverse consumer demands. Selecting an effective logistics mode is a crucial issue for suppliers, yet uncertainty in demand and exchange rate fluctuations make this problem challenging. This paper considers a supply chain consisting of a supplier and a CBEC platform. Using a distributionally robust optimization approach, we provide optimal overseas warehousing strategies and logistics mode selection for suppliers, given partial distribution information of market demand and exchange rate, such as means, variances, and covariances. It is found that when demand and exchange rate fluctuations are small, the supplier chooses the bonded warehouse logistics mode to reduce costs. Conversely, when demand and exchange rate fluctuations increase, the supplier opts for the direct mail mode to respond flexibly to market risk. The correlation between exchange rate and demand also affects the choice of logistics mode. Specifically, with low correlation, the preference is for the bonded warehouse mode, whereas high correlation leads suppliers to choose the direct mail mode. In addition, the impact of demand and exchange rate fluctuations on suppliers’ overseas warehousing volumes depends on the product’s profit margin. These findings provide guidance for the selection of CBEC logistics under exchange rate risk. |
| format | Article |
| id | doaj-art-9de66d1bafd34e2eb9e67641bf308f3f |
| institution | OA Journals |
| issn | 0718-1876 |
| language | English |
| publishDate | 2024-09-01 |
| publisher | MDPI AG |
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| series | Journal of Theoretical and Applied Electronic Commerce Research |
| spelling | doaj-art-9de66d1bafd34e2eb9e67641bf308f3f2025-08-20T01:55:35ZengMDPI AGJournal of Theoretical and Applied Electronic Commerce Research0718-18762024-09-011932312234210.3390/jtaer19030112Direct Mail or Bonded Warehouse? Logistics Mode Selection in Cross-Border E-Commerce under Exchange Rate RiskXiaoyi Li0Hui Yu1Caihong Sun2School of Economics and Business Administration, Chongqing University, Chongqing 400044, ChinaSchool of Economics and Business Administration, Chongqing University, Chongqing 400044, ChinaSchool of Accounting, Chongqing Technology and Business University, Chongqing 400067, ChinaThe rapid development of cross-border e-commerce (CBEC) has enabled more suppliers to expand into overseas markets, meeting increasingly diverse consumer demands. Selecting an effective logistics mode is a crucial issue for suppliers, yet uncertainty in demand and exchange rate fluctuations make this problem challenging. This paper considers a supply chain consisting of a supplier and a CBEC platform. Using a distributionally robust optimization approach, we provide optimal overseas warehousing strategies and logistics mode selection for suppliers, given partial distribution information of market demand and exchange rate, such as means, variances, and covariances. It is found that when demand and exchange rate fluctuations are small, the supplier chooses the bonded warehouse logistics mode to reduce costs. Conversely, when demand and exchange rate fluctuations increase, the supplier opts for the direct mail mode to respond flexibly to market risk. The correlation between exchange rate and demand also affects the choice of logistics mode. Specifically, with low correlation, the preference is for the bonded warehouse mode, whereas high correlation leads suppliers to choose the direct mail mode. In addition, the impact of demand and exchange rate fluctuations on suppliers’ overseas warehousing volumes depends on the product’s profit margin. These findings provide guidance for the selection of CBEC logistics under exchange rate risk.https://www.mdpi.com/0718-1876/19/3/112cross-border e-commerceexchange rate risklogistics mode |
| spellingShingle | Xiaoyi Li Hui Yu Caihong Sun Direct Mail or Bonded Warehouse? Logistics Mode Selection in Cross-Border E-Commerce under Exchange Rate Risk Journal of Theoretical and Applied Electronic Commerce Research cross-border e-commerce exchange rate risk logistics mode |
| title | Direct Mail or Bonded Warehouse? Logistics Mode Selection in Cross-Border E-Commerce under Exchange Rate Risk |
| title_full | Direct Mail or Bonded Warehouse? Logistics Mode Selection in Cross-Border E-Commerce under Exchange Rate Risk |
| title_fullStr | Direct Mail or Bonded Warehouse? Logistics Mode Selection in Cross-Border E-Commerce under Exchange Rate Risk |
| title_full_unstemmed | Direct Mail or Bonded Warehouse? Logistics Mode Selection in Cross-Border E-Commerce under Exchange Rate Risk |
| title_short | Direct Mail or Bonded Warehouse? Logistics Mode Selection in Cross-Border E-Commerce under Exchange Rate Risk |
| title_sort | direct mail or bonded warehouse logistics mode selection in cross border e commerce under exchange rate risk |
| topic | cross-border e-commerce exchange rate risk logistics mode |
| url | https://www.mdpi.com/0718-1876/19/3/112 |
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