Selling mode strategy and streamer choice in a live-streaming supply chain considering product returns

Live-streaming e-commerce has revolutionised retail by enabling real-time interactions between brand owners, streamers, and consumers, which makes it an indispensable marketing tool for today’s brand owners. Considering the various types of streamers and high possibility of product returns in live-streaming, this study explores optimal strategies for brand owners in choosing live-streaming selling modes and streamers for product promotion. We find that no strategy is universally superior: the best choice depends on return costs, bargaining power, the streamer’s influence, and pit fees. Commission-based collaboration is more effective for influential streamers, especially if the cost of return is not high. In contrast, using employee streamers can be more profitable when the return cost is high or brands possess strong bargaining power. Notably, our research indicates that brand owners can still achieve profit when partnering with highly influential streamers, even if they give up pricing power, absorb return costs, and pay streamer commissions. This study provides crucial insights for brand owners in live-streaming e-commerce regarding streamer selection, mode choice, and effective management of returns.