Abstract: Considering that the manufacturer's production cost is linear and non-linear, the manufacturer's selection strategy for online sales model under different production cost structure is explored. The Stackelberg game model between the manufacturer and the e-commerce platform is constructed, and the optimal profit of both sides under different strategies is obtained by using reverse induction, so as to obtain the conditions for both sides to achieve a win-win situation. The study finds that regardless of the manufacturers' production cost structure, their preference for the sales model is related to the commission ratio. When the commission ratio is low, they choose the online agency selling model. When the commission ratio is high, they choose the online reselling model. Moreover, the interests of manufacturers and e-commerce platforms are not always opposed, and when the commission ratio is moderate or high, both sides can achieve a win-win situation. In addition, in the case of diseconomies of scale, the consumer surplus and social welfare of the two sales models are negatively correlated with the diseconomies of scale coefficient, and the online agency selling model is more affected by the diseconomies of scale coefficient.

Key words: supply chain, linear cost, diseconomies of scale, sales model, commission ratio