Online Second-Hand Bookstores’ Strategic Decisions: A Theoretical Perspective

The development of second-hand bookstores has received ample attention in the book industry. However, research on their operational strategies is still its infancy, especially concerning how they compete with new bookstores. We used Hotelling model to investigate bookstores’ differentiation strategy. analyzed product mismatch problems and consumer preferences affect profits. came three major conclusions. First, can effectively using a Moreover, it better set high prices for special old books. Second, higher breadth depth mismatching will increase revenue lower Third, profit decreases consumers’ books, while influence such profits depends transportation cost. These findings provide valuable insights An important implication this study that strategy needs consider preferences.