Economic Analysis of the “Double Eleven” Shopping Festival on Online Shopping Platforms

Abstract

With the rapid development of the Internet economy, China’s e-commerce transaction volume continues to grow, and the largest contribution to the transaction volume is the annual “Double Eleven” shopping festival. Over the years, “Double Eleven” activities have triggered a wave of shopping sprees over the years, and its success is based on many economic principles: factors such as price elasticity and consumer income levels in demand theory; cost, benefit, hunger marketing and other means in supply theory; strategies such as price discrimination and bundling pricing in production pricing. Based on economic theory, this paper analyzes the reasons for the development of the “Double Eleven” shopping festival and the new retail model in China, demonstrates the social welfare and negative effects brought by the “Double Eleven” shopping festival, and puts forward reflections and suggestions accordingly.