A Study on the Delivery Policy of Internet Bookstores

인터넷 서점의 배송정책에 관한 연구

  • Kim, Ji-Pyo (Department of Industrial and Information Systems Engineering, Seoul National University of Technology) ;
  • Hong, Soon-Hyuk (Department of Industrial and Information Systems Engineering, Seoul National University of Technology)
  • 김지표 (서울산업대학교 산업정보시스템공학과) ;
  • 홍순혁 (서울산업대학교 산업정보시스템공학과)
  • Published : 2010.12.31

Abstract

In this paper we study the delivery policy of internet bookstores and recommend the improved policy to increase customer satisfaction and sales revenue. We classify customers into two, the price-sensitive and the delivery time-sensitive, and develop a new shipping method, the unhurried shipping, for the price-sensitive who are reluctant to pay shipping fee for the small purchase but willing to wait extra time for the ordered goods. The customers could get discount on shipping fee by the unhurried shipping but have to accept the longer delivery lead-time. We investigate the possible ways to reduce costs with the prolonged delivery time and show that some costs regarding shipmentand inventory could be saved in order to make up for additional shipping costs for the price-sensitive.

Keywords