When should a live-stream e-seller offer return-freight insuranceOA

Consumer rights and interests have been a challenge since the emergence of live-stream selling.To solve this problem,some live-stream e-sellers have introduced an innovative return policy called return-freight insurance(RFI).However,other sellers selling the same product refuse to do so.We develop a duopoly model featuring a live-stream seller and a traditional e-seller to investigate the conditions under which e-sellers should offer RFI in the context of live-stream selling.Our model captures the key features of live-stream selling:the social value that enables consumers to interact with others and the infor-mation value that helps eliminate product-fitness uncertainty.Our results indicate that RFI conflicts with the information value of the live stream and can sometimes harm the live-stream e-seller in a competitive market.In addition,offering RFI always induces live-stream and traditional e-sellers to increase their prices.When competitors offer RFI,the traditional e-seller with a low return-freight premium will offer RFI,while the return policy of the live-stream e-seller also depends on the information value of the live stream.Furthermore,the live-stream e-seller will never offer RFI unless its competitor adopts this strategy.