Impact of return freight insurance of E-business on agricultural-product sellers.

Yu Gu, Hao Hu · Guizhou nongye kexue · 2013

In order to analyze the true effects of return freight insurance on agricultural-product sellers,the information asymmetries between the consumer and the sellers are the main reasons to cause the reverse logistics in E-business.Accordingly,the author establishes three models: the consumer decision-making in E-business shopping model,the return rate model and the sellers' profit model.At last the author introduces the real numerical values into the three models and proves that the sellers who sale cost-effective commodity can earn more profit after using the new insurance,while the other two sellers would lose,so the sellers were recommended to insist honest business.

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