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Revenue management opportunities for Internet retailers

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Abstract

In this article, we explain how Internet retailers can learn from proven revenue management concepts and use them to reduce costs and enhance service. We focus on attended deliveries as these provide the greatest opportunities and challenges. The key driver is service differentiation. Internet retailers have strong levers at their disposal for actively steering demand, notably the offered delivery time windows and their associated prices. Unlike traditional revenue management, these demand management decisions affect both revenues and costs. This calls for a closer coordination of marketing and operations than current common practice.

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Author information

Authors and Affiliations

  1. Erasmus University, Rotterdam, The Netherlands

    Niels Agatz & Jo van Nunen

  2. University of Iowa, Iowa City, Iowa, USA

    Ann M Campbell

  3. University of Mannheim, Mannheim, Germany

    Moritz Fleischmann

  4. University of Newcastle, Newcastle, New South Wales, Australia

    Martin Savelsbergh

Authors
  1. Niels Agatz
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  2. Ann M Campbell
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  3. Moritz Fleischmann
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  4. Jo van Nunen
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  5. Martin Savelsbergh
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Corresponding author

Correspondence to Niels Agatz.

Additional information

4was professor and chair of decision and information sciences at the Rotterdam School of Management, Erasmus University. His research on e-commerce, closed-loop supply chain management and multi-modal transportation is published in 6 books and more than 150 journal articles. He passed away unexpectedly in May 2010.

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Agatz, N., Campbell, A., Fleischmann, M. et al. Revenue management opportunities for Internet retailers. J Revenue Pricing Manag 12, 128–138 (2013). https://doi.org/10.1057/rpm.2012.51

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  • DOI: https://doi.org/10.1057/rpm.2012.51

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