Decisions Of E-Commerce Supply Chain With Low-Carbon Fashion Products Under Altruistic Preferences In Vietnam

Abstract

With the aggressive development of E-commerce in Vietnam in recent years, especially from Covid-19 period, many traditional manufacturers and sellers, especially in fashion industry have gradually created its own market in online platforms. Therefore, manufacturers producing low-carbon goods have participated in this journey with the desire to have more revenues from e-market. However, the relationship between manufacturer and online platform in e-commerce supply chain in Vietnam seems fragile as e-platforms rarely cares about manufacturers ‘profit to make decisions while manufacturers mostly follow to platform’s policy to give a strategy. This study will analyze the relationship of two parties by basics model involving altruistic preference or not to see the impact of each parameter to their decisions. The analysis will be conducted with the variation of commission charge and purchaser’s awareness to have a clear view about the online platform impact on manufacturers and how buyers’ factors impacting on decision of two parties. From the results, setting higher or lower commission charge would affect to profits of two parties and other parameters such as service level, investment in minimizing low carbon equipment’s. When purchaser have higher awareness about environment, most of the parameters would be affected.