Does Scarce Inventory Information Disclosure Strategy Promote Online Sales?

Abstract

In pursuit of promoting sales, certain e-commerce vendors post scarce inventory messages on product pages to signal impending stockouts. To explore how disclosure information strategy regarding scarce inventory influences online sales, this study utilizes Chinese e-commerce data collected from February 1st to April 30th, 2023 and constructs an empirical model that delves into the relationship between the disclosure of scarce inventory information and online sales based on the signal theory. The empirical findings reveal a positive impact of scarce inventory information disclosure on online sales, with this impact being more pronounced under the moderating role of the commodity discount rate. These results hold substantial theoretical implications and offer valuable insights for practical applications in the e-commerce domain.