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<p>Nowadays, smart delivery tracking systems that combine GPS tracking and real-time logistics locations have enabled both sellers and consumers to see the exact delivery lead time. However, in a cross-border e-commerce system where delivery time seems more important for overseas consumers, we observe that many e-tailers have only quoted the delivery time based on expectation, resulting in a huge promised delivery time (PDT) cost, especially when the realized delivery time (RDT) is longer than PDT so a penalty cost is incurred. In this paper, we investigate an e-tailer’s strategic decision to adopt the smart delivery tracking system where one multinational firm (MNF) sells products through both its own retail subsidiary and the third-party e-tailer. Clearly, the smart delivery tracking system allows the stakeholders to know the real-time RDT so the e-tailer saves the PDT cost. We reveal that there exists an <i>overall-cost-mitigation effect</i> in which the MNF is incentivized to lower the wholesale price to counteract the e-tailer’s PDT cost. This drives the e-tailer’s adoption of the smart delivery tracking system to switch twice, depending on the difference between the impacts of RDT and PDT on the online market potential. We further identify conditions under which the MNF also benefits from the e-tailer’s adoption of the smart delivery tracking system, finding that the MNF may be beneficial, but consumer surplus may be hurt.</p>

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The bright and dark sides of real-time delivery tracking in cross-border e-commerce

  • 期刊论文

  • 发表日期：

    2025年9月16日

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  • Baozhuang Niu,
  • Lingfeng Wang,
  • Yiyuan Ruan,
  • Xin Xu,
  • Enkai Zhang

摘要

Nowadays, smart delivery tracking systems that combine GPS tracking and real-time logistics locations have enabled both sellers and consumers to see the exact delivery lead time. However, in a cross-border e-commerce system where delivery time seems more important for overseas consumers, we observe that many e-tailers have only quoted the delivery time based on expectation, resulting in a huge promised delivery time (PDT) cost, especially when the realized delivery time (RDT) is longer than PDT so a penalty cost is incurred. In this paper, we investigate an e-tailer’s strategic decision to adopt the smart delivery tracking system where one multinational firm (MNF) sells products through both its own retail subsidiary and the third-party e-tailer. Clearly, the smart delivery tracking system allows the stakeholders to know the real-time RDT so the e-tailer saves the PDT cost. We reveal that there exists an overall-cost-mitigation effect in which the MNF is incentivized to lower the wholesale price to counteract the e-tailer’s PDT cost. This drives the e-tailer’s adoption of the smart delivery tracking system to switch twice, depending on the difference between the impacts of RDT and PDT on the online market potential. We further identify conditions under which the MNF also benefits from the e-tailer’s adoption of the smart delivery tracking system, finding that the MNF may be beneficial, but consumer surplus may be hurt.