M-Commerce, Sales Concentration, and Inventory Management

Problem definition: The mobile commerce (m-commerce) channel is poised to be the future of online markets. It offers search features distinct from conventional personal computer (PC)-based e-commerce channels. Its easy accessibility extends time available for customers search, although its shopping environment constraints (e.g., small screen size, single-tab browsing) may inflate costs. Collectively, these competing cause ambiguity about channel’s true effect on sales concentration—a key criterion in managing retail operations. focus this study understand net impact driving concentration. Academic/practical relevance: Our empirical literature focusing retailers’ strategies and their implication operations practice. examines differences primary channels—mobile PC—on shaping concentration across products cost ignoring such a difference inventory management, core decision managers. Methodology: We collaborate with large apparel retailer access customer-level transactional data. identify using difference-in-differences strategy that leverages quasi-experiment stemming retailer’s discontinue PC channel. Results: find increases share popular by 6.4% compared also scenarios where significant will yield suboptimal stocking 4.2%–12.9%. Managerial implications: paper highlights channels have different concentrations because features. Ignoring affects decisions, as safety cycle levels. Therefore, it imperative managers revise status quo strategies, procurement, assortment planning, product display, when integrating m-commerce e-commerce.