Research on the Impact of Consumers’ Time Sensitivity on E-commerce Free Shipping Strategy

With the online shopping carnival, e-retailers have to process huge volumes of orders. Logistics enterprises are also overloaded with goods for delivery. It causes deferred delivery. Based on this phenomenon, this paper proposes solving deferred delivery problem from the e-retailers side. This paper builds a dynamic game model between e-retailers and consumers based on the Stackelberg game, with the consumer residual function, considering the difference of consumer's time sensitivity to deferred delivery. The influence of free shipping strategy and corresponding numerical analysis are carried out. Some management theories and insights are given to provide theoretical support for e-retailers and consumers to make optimal decisions.