Should e-commerce platforms sell their private label brand products through third-party platforms?

Purpose This study explores whether and when e-commerce platforms should extend the sale of private label products to third-party platforms, and how this strategic decision interacts with manufacturers' sales mode choices. Design/methodology/approach We constructed a two-stage game theory model to explore the strategic interactions between e-commerce platforms and manufacturers. By comparing the profits of e-commerce platforms and manufacturers under different distribution strategies, we identified the key factors influencing their strategic decisions. Findings The results show that platform entry into third-party platforms is jointly driven by two key factors: the potential market size of the private label brand and the intensity of competition for private label brand products across platforms. Specifically, e-commerce platforms are more likely to enter third-party platforms when the potential market for their private label brand is substantial and cross-platform competition for private label brands is intense. Moreover, extending the sale of private label brand products to third-party platforms can mitigate the double marginalization. Originality/value This study shifts focus from the introduction of private label brands on e-commerce platforms to the cross-platform distribution of private label brand products, thus advancing research in the areas of platform competition and private label strategy. This research reveals the trade-offs between brand expansion and market competition. The findings provide theoretical support and practical guidance for platforms designing private label brands' distribution strategies and for manufacturers choosing sales modes in an increasingly competitive market environment.

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Publication Details

Journal
Asia Pacific Journal of Marketing and Logistics
Published
2026-09-01
DOI
https://doi.org/10.1108/apjml-01-2026-0235
Primary Topic
Consumer Market Behavior and Pricing
Type
article
Field-Weighted Citation Impact
0.00
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article

Should e-commerce platforms sell their private label brand products through third-party platforms?

Dapeng Pan, Ziqiong Zhang, Zili Zhang, Shida Ni et al.
Asia Pacific Journal of Marketing and Logistics
Consumer Market Behavior and Pricing
article

Should e-commerce platforms sell their private label brand products through third-party platforms?

Dapeng Pan, Ziqiong Zhang, Zili Zhang, Shida Ni, Qihuan Chu
article en

Abstract

Purpose This study explores whether and when e-commerce platforms should extend the sale of private label products to third-party platforms, and how this strategic decision interacts with manufacturers' sales mode choices. Design/methodology/approach We constructed a two-stage game theory model to explore the strategic interactions between e-commerce platforms and manufacturers. By comparing the profits of e-commerce platforms and manufacturers under different distribution strategies, we identified the key factors influencing their strategic decisions. Findings The results show that platform entry into third-party platforms is jointly driven by two key factors: the potential market size of the private label brand and the intensity of competition for private label brand products across platforms. Specifically, e-commerce platforms are more likely to enter third-party platforms when the potential market for their private label brand is substantial and cross-platform competition for private label brands is intense. Moreover, extending the sale of private label brand products to third-party platforms can mitigate the double marginalization. Originality/value This study shifts focus from the introduction of private label brands on e-commerce platforms to the cross-platform distribution of private label brand products, thus advancing research in the areas of platform competition and private label strategy. This research reveals the trade-offs between brand expansion and market competition. The findings provide theoretical support and practical guidance for platforms designing private label brands' distribution strategies and for manufacturers choosing sales modes in an increasingly competitive market environment.

Asia Pacific Journal of Marketing and Logistics
Harbin Institute of Technology (CN), Dalian University of Technology (CN), Northeast Petroleum University (CN)
Reduced inequalities
Openalex Percentile: Top 6%
Consumer Market Behavior and Pricing
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