When retailers shop for manufacturing capacity online, they move fast, and they’re watching the bottom line. New research co-authored by Lu Kong, assistant professor of information systems at the University of South Florida, finds that production speed and price outweigh nearly every other factor when retailers choose suppliers on digital marketplaces.
In online sourcing, speed and price drive decisions, especially for fast-moving products, offering clear guidance for manufacturers and digital marketplaces alike.
Published in Production and Operations Management, the study examines more than 21,000 real transactions from a major business-to-business platform where manufacturers sell excess capacity. Instead of relying on surveys, the research team used machine-learning tools to analyze actual purchasing decisions, ranking the importance of more than 20 supplier attributes across price, speed, quality, and service.
The results are clear: Fast lead times and competitive pricing dominate. Quality still matters, but mostly as a baseline requirement. Retailers expect it. Once that threshold is met, shaving days off production or lowering costs makes the difference. Service guarantees, meanwhile, play a surprisingly small role in sealing deals.
Context changes the equation. For larger orders, price and quality gain importance, while speed becomes less What really drives retailers’ online supplier choices critical. Product type also matters. Retailers sourcing trendy, short-life-cycle items prioritize speed and flexibility. Those buying functional, long-lasting goods focus more on price and consistent quality.
For suppliers, the message is practical: invest where it counts. For online platforms, highlight the information buyers truly use. By understanding how decisions are actually made, marketplaces can match partners more efficiently, and help businesses compete smarter.
Authors: Kejia Hu, University of Oxford; Lu Kong, University of South Florida; Zhenzhen Jia, Xi’an Jiaotong University.