Optimal platform sales mode in live streaming commerce supply chains

This paper investigates three common sales modes with live streaming commerce, including e-commerce platform mode, transferring mode and live streaming platform mode (abbreviated as E, T and L, respectively). Using game-theoretical method, we study how participants choose sales modes with consumer return. The findings show that for the seller and platforms, each mode may be the best, depending on basic net sales volume and channel rate. However, for the streamer, mode T will never be the best. On the other hand, product quality in mode L is always higher than that in mode T, and higher than that in mode E when live streaming platform’s basic net sales volume is high. Furthermore, we show that hybrid mode may generate higher profits for members, except for the live streaming platform; and we also study the impacts of transferring loss, gift-giving function and streamer’s dual-purpose on results through extensions, examining the robustness of the model, and deriving additional managerial insights.