A Comparative Analysis of Profit Structures from Platform Channel Adoption by Manufacturers and Retailers

The rapid expansion of e-commerce and advancements in digital technology have fundamentally reshaped the structure of the retail industry, prompting manufacturers and retailers to diversify their sales channel strategies. Traditionally, manufacturers distributed products to consumers through offline retail stores operated by retailers. However, the rise of third-party platforms has introduced new distribution models, resulting in a more complex, multi-channel environment. In this context, the need for quantitative analysis of profit structures and strategic positioning among supply chain participants has become increasingly critical. This study develops a supply chain model consisting of a manufacturer, a retailer, and a third-party platform utilized by the retailer. Two distribution scenarios are analyzed: (1) the retailer operates only an offline channel, and (2) the retailer concurrently operates both an offline channel and a third-party platform channel. Consumer demand is segmented into three categories—offline-only, online-only, and flexible—and channel-specific price sensitivities are incorporated to analytically derive the demand functions, profit functions, and equilibrium prices. Numerical simulations are conducted by varying price sensitivities and demand compositions to compare the relative profitability of each participant. The results show that as the proportion of flexible demand increases, the platform's profit grows significantly, while the retailer's profitability declines sharply due to offline channel cannibalization, intensified platform competition, and commission fees. In contrast, the manufacturer maintains a relatively stable profit structure by supplying products across all channels. This study offers practical insights into strategic channel selection and supply chain collaboration by quantitatively revealing the asymmetric impacts of platform channel adoption on manufacturers, retailers, and platforms.