Innovation has significantly influenced retail with e-commerce outlets being strategic players in the market. These platforms are also enabling suppliers to sell their products through the online, store, and Buy Online Pick-Up In-Store (BOPS) model. While omnichannel retailing is gaining more and more popularity, the seamless interaction of these channels is necessary. This blog is dedicated to coupon promotion and inventory management for suppliers, who are considering omnichannel coupons provided by e-commerce platforms. 

Omnichannel Coupons: The New Era

Thus, coupons that are usable both online and offline are popular because they offer the same level of shopping experience to the customers. These coupons are very important, especially in the current world that is after the pandemic where consumers are more conscious of the prices they have to pay. For instance, an e-retailer like JD.com offers coupons for use on both the online platform and stonecenters, which increases channel integration and consumption. 

Strategies for Coupon Promotion

A rather typical example is that both the e-commerce platforms and suppliers release coupons acceptable across the channels. These promotions are provided under certain conditions and it is possible to use the methods of game theory to determine the optimal strategy for the subjects. The equilibrium outcome of these strategies could range from web-based joint promotion to multi-channel promotion based on other parameters like supplier return loss and consumer valuation differences. 

For instance, if shopping convenience is a major factor to consumers and the supplier has high return costs, then omnichannel joint promotions work best. In this case, the platforms publish omnichannel coupons, while the suppliers publish online coupons. This dual approach means that while promotions are deeper for the customer, the promotional costs are also reduced for both parties. 

Inventory Management Considerations

A coupon promotion influences the stock keeping units of a supplier in a direct manner. The number of coupons given out or the number of coupons returned can define the number of stocks to order or the number of stocks to manufacture and vice versa. According to the case of omnichannel retailing, inventory management should be in sync with the promotional activities of the supplier. For example, a supplier may accumulate store inventory to cater to what he expects to be higher demand due to an omnichannel coupon promotion. 

Game theory in the selection of the most appropriate strategies

Using game theory, both the suppliers and e-commerce platforms can look for the best strategies in coupon promotion and inventory management. Newsvendor models help in estimating demand risk and decision-making in case of uncertain outcomes. When the consumer preferences are equal across the channels, the promotional intensity of both the unilateral and the bilateral promotions are equal. On the other hand, where the consumers are diverse and there could be variations in the consumers' preferences, a joint promotion method is expected to offer a higher face value of coupons. 

Supplier and platform considerations

The implications of the findings are discussed with special reference to suppliers and the platforms. First of all, the most effective form is omnichannel joint promotion, especially if the rate of return losses is high for the supplier. Secondly, the face value of omnichannel coupons should be greater than that of traditional internet coupons to attract more consumers. Last but not least, there is always the need to adjust the inventory due to promotion. For instance, the supplier can have more stock in the store before the joint promotion since omnichannel coupons boost demand. 

Conclusion

The incorporation of omnichannel coupons in retailing is beneficial to both the suppliers and the e-commerce channels. Therefore, the game theoretic approach may guide the suppliers toward the optimum coupon promotion and inventory control for proper and profitable operations. Thus, tools like omnichannel coupons will be key to maintaining competitiveness and delivering great shopping experiences in this constantly evolving retail landscape. 

As highlighted in the case of JD.com and Uniqlo suppliers, the use of omnichannel approaches is crucial in e-commerce competition. Purchases can meet consumer needs, and also improve the profit margin through collaboration and effective stock management. These strategies can be of great advantage to Stonecenters as a market leader if only it ensures that its products are always available in the market and at cheaper prices than its competitors in all the outlets. Therefore, in the context of the constant shift in consumer trends, the capacity to create new promotional and inventory strategies will become the foundation for the implementation of omnichannel retailing.