This paper examines the economic effects of the fulfillment services offered by Amazon (FBA) to the third-party sellers on its retail platform (Amazon 2018). Logistics is critical for e-commerce. By FBA, the service levels of the third-party sellers are substantially improved, and so is their...

Several major on-line platforms operate two channels: an agency channel in which suppliers retain control over prices and quantities and pay a portion of sales revenue to the platform, and a reselling channel in which the platform purchases goods from the supplier and resells them to consumers....