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J·BJon BishopIndependent growth marketer

Platforms · Exploratory analysis of seller sales data plus a duopoly/sequential-game model explaining the observed pattern.

Can Third-Party Sellers Benefit from a Platform’s Entry to the Market?

Service Science · 2023

Yiting Deng, Christopher S. Tang, Wei Wang, Onesun Steve Yoo

Summary

After entry, similar third-party sellers charged higher prices, obtained higher demand and earned higher profit; the proposed explanation requires moderate platform potential and sufficient spillover.

For your marketing

Possible founder application

Use it as a behavioral mechanism or experiment-design reference, not a direct forecast for a SaaS funnel.

Reported result

What the study found

After entry, similar third-party sellers charged higher prices, obtained higher demand and earned higher profit; the proposed explanation requires moderate platform potential and sufficient spillover.

Research question

What the authors investigated

Can platform entry benefit incumbent third-party sellers rather than harm them?

Design

Exploratory analysis of seller sales data plus a duopoly/sequential-game model explaining the observed pattern.

Sample and setting

JD.com sales data for one product category in March 2018; third-party sellers before/after platform entry.

Scope and transfer

Limitations to keep in view

The empirical analysis is one product category and one month on JD.com and is explicitly exploratory; the theoretical explanation is conditional rather than causal proof across settings.

Research sources

Publisher abstract specifies the single-category March-2018 JD.com data and reports higher price, demand and profit after entry. Direct publisher-page retrieval was recorded on 2026-10-09; this profile uses publisher metadata/abstract and does not claim independent review of unavailable full text.

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