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In e-commerce supply chains, AI and information technologies enable a substantial flow of information from customers to manufacturers through product reviews, which provide insights into product quality. Conventional wisdom suggests that review-based social learning benefits both consumers and firms within the supply chain. However, our research reveals that this may not always be the case. Specifically, information from product reviews introduces new dynamics that are absent in traditional supply chains. For instance, e-commerce platforms like Taobao and Amazon may adjust their retail prices based on product review trends, prompting manufacturers to modify their wholesale prices accordingly.

Our findings indicate that product reviews intensify the dynamic pricing competition between platforms and manufacturers, potentially harming supply chain performance. To address these negative impacts, we recommend strategies such as implementing commission contracts, which can enhance information sharing and improve product quality, and shading information to reduce its accuracy, which surprisingly leads to greater satisfaction among all supply chain participants. Ultimately, our research warns against the assumption that more information is always beneficial in e-commerce supply chains.