# Manufacturer Channel Encroachment and Evolution in E-Platform Supply Chain: An Agent-Based Model
## 6 Conclusions  
This study discusses the channel encroachment behaviour and evolution of manufacturers through an agent-based simulation model of an e-commerce supply chain. Through multi-period, adaptive, and elimination simulations, we find that the channel structure in the supply chain is influenced by a variety of factors, and some conclusions are drawn. We conclude with the following management insights. For manufacturers, channel encroachment can be profitable, so steps should be taken to improve it. On the one hand, manufacturers wishing to expand their channels should focus on channel reputation and influence, and can increase consumer preference for direct sales channels through promotional marketing. For example, Apple regularly sends advertising emails to users recommending that consumers go to Apple's official website to make a purchase. Such official promotion will increase consumers' trust in the direct sales channel and bring the manufacturer closer to the consumer. On the other hand, from the perspective of cutting costs, manufacturers should also improve the operational efficiency of their direct sales channels. Specifically, manufacturers should reduce the cost of operating and maintaining their direct sales channels and improve their channel operating techniques. This will reduce the cost pressure on manufacturers' channel encroachment. On the other hand, from the perspective of cutting costs, manufacturers should also improve the operational efficiency of their direct sales channels. Specifically, manufacturers should reduce the cost of operating and maintaining their direct sales channels and improve their channel operating channel encroachment. There are some defensive actions that e-commerce platforms should take since they may be harmed by manufacturer's channels encroaching. Improving platform promotion and upholding its reputation are two important approaches. The e-commerce platform has a relatively large user base and user stickiness, and consumers are more trusting of the e-commerce platform. Based on this, the platform must consider both the loyalty of current users and the attraction of new ones. For example, Taobao regularly runs sales, and discounts and bonuses encourage consumers to choose the platform channel for their purchases. In addition to publicity and promotions, to maintain reputation, e-commerce platforms should also strengthen the regulation and management of resident sellers. Taobao has a protocol for sellers and has an exclusive platform monitoring mechanism for sellers to address after-sales issues for consumers. On the other hand, e-commerce platforms can also defend themselves against channel encroachment by increasing commissions. However, if the commission rate is too high it may cause manufacturers to withdraw from the platform for single-channel operations in the direct sales channel. In addition to business management advice for operators, our study can also give consumers some insight. From our analysis, we can see that consumers can obtain higher utility when they have a higher preference for the quality of the product. Manufacturers may decide to change their price and channel strategies as a result of the consumer's desire for high-quality products, which will ultimately benefit the consumer. This can improve the market's quality-first buying environment and support the growth of high-quality products. There are some limitations in this study. Firstly, this paper discusses manufacturers as the decision-makers but does not analyse platform decisions. In addition, the simulation model does not consider the entry of new manufacturers. Finally, future discussions could also be based on reselling models in e-commerce for channel encroachment. Conceptualization, R.M. and T.Y. ; Methodology, R.M. ; Software, R.M. ; Validation, R.M. ; Formal analysis, R.M. and T.Y. ; Data curation, R.M. ; Writing--original draft, R.M. ; Writing--review & editing, R.M. and T.Y. ; Supervision, T.Y. All authors have read and agreed to the published version of the manuscript.