ANALYSIS OF THE INFLUENCE OF PRICE, PROMOTION, LOGISTICS

DISTRIBUTION ON E-COMMERCE SALES

Andri Primadi1, Ahmad Syafi'i Ridho2

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Air Transportation Management Program, Faculty of Management and Business,
Trisakti Institute of Transportation and Logistics, Jakarta, Indonesia

email: syrdho@gmail.com

Abstract
This study aims to analyze the influence of price, promotion, and logistics distribution
on e-commerce sales. E-commerce has transformed the retail landscape by providing
convenience, variety, and price competition for consumers. Therefore, strategic
management of pricing, promotion, and logistics distribution is essential to maximize
sales and customer satisfaction. This study uses the library research method to identify
the main findings from previous research and compile a synthesis of existing
knowledge. The results of the study show that competitive and fair prices, effective
promotion, and efficient logistics distribution have a significant influence on e-
commerce sales. An integrated pricing strategy, promotion, and logistics distribution
can improve customer satisfaction, loyalty, and sales. This research provides insights
for e-commerce practitioners and researchers in developing effective strategies to
improve sales performance.

Keywords: Price, Promotion, Logistics Distribution, E-Commerce Sales

INTRODUCTION
E-Commerce has transformed the retail landscape by enabling businesses to
reach a global audience, which requires strategic management of pricing, promotions,
and logistics distribution to maximize sales and customer satisfaction. Digital E-
Commerce provides unprecedented convenience, variety, and price competition for
consumers, so it is very important for e-commerce businesses to adopt effective pricing
strategies (Yolanda and Widijoko, 2014). Price adjustments, discounts, and dynamic
pricing models are essential for attracting and retaining customers in a highly
competitive market. Understanding how price affects consumer behavior and sales
performance is essential for the success of e-commerce (Toruan, 2022). Therefore,
analyzing the impact of pricing, promotion, and logistics distribution strategies is
important to review their impact on e-commerce sales is the main focus of this review.
Promotions play a crucial role in driving e-commerce sales by increasing
product visibility and attracting customers to make purchases. Various promotional
activities, such as discounts, limited-time offers, and product bundling, can
significantly influence consumers' purchasing decisions. An effective promotional
strategy not only increases short-term sales but also increases brand recognition and
customer loyalty. Research shows that a well-executed promotional strategy can result
in a significant increase in e-commerce sales (Jiang et al., 2015). Therefore, this review
will explore the different promotional tactics used in e-commerce and their effects on
sales performance.
Logistics distribution is another important factor that affects e-commerce sales
by affecting the speed of delivery, reliability, and overall customer satisfaction.

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Efficient logistics and supply chain management ensures that products are delivered on
time and in good condition, which is essential for maintaining customer trust and
loyalty (Ricardianto et al., 2023). The integration of advanced logistics solutions, such
as real-time tracking and automated warehouses, can significantly improve distribution
efficiency (Adamczak et al., 2018). This review will examine how logistics distribution
strategies affect e-commerce sales and customer satisfaction.
Overall, the success of an e-commerce business relies heavily on the effective
management of prices, promotions, and logistics distribution. By synthesizing the
existing literature on these topics, this review aims to provide a comprehensive
understanding of how these factors affect e-commerce sales. These findings will
provide valuable insights for e-commerce practitioners and researchers, who can guide
future strategies and studies in this rapidly growing field.

RESEARCH METHODS
Research Approach
This research uses the library research method, which collects and analyzes
various articles and scientific books related to the topic. The purpose of this method is
to identify the main findings from previous research and compile a synthesis of existing
knowledge about the influence of price, promotion, and logistics distribution on e-
commerce sales. By conducting an in-depth literature review, this study aims to build a
comprehensive understanding of how these factors interact with each other to influence
e-commerce performance. The method identifies key trends, common findings, and
gaps in the existing literature.
In addition to identifying key findings, the literature review process also helps
in building a theoretical framework. This framework serves as a basis for understanding
the complex relationship between pricing, promotion, logistics distribution, and e-
commerce sales. Critical evaluation of the literature allows researchers to contextualize
findings within the broader field of e-commerce research. This approach ensures that
research is based on existing knowledge while also shedding light on areas that require
further research. The main goal is to provide a comprehensive perspective that can
guide future research and practical applications in the e-commerce industry.
Data Source
Data is collected from a variety of academic sources, including e-books and
scientific journals available on platforms such as Scopus, Google Scholar, and Elsevier.
The platform provides access to a wide range of reviewed articles, thus ensuring the
validity of the data collected. The criteria for selecting sources are publications in the
period 2014-2024 that are relevant to the research topic. This timeframe ensures that
the data reflects the latest developments and trends in the e-commerce sector. In
addition, the selection process prioritizes data that offers comprehensive analysis
contributing to a deeper understanding of the subject.
Data sources must meet strict scientific quality standards to ensure the validity
and reliability of research findings. By adhering to these standards, research aims to
build a credible information base. It involves evaluating the methodological rigor of
each study, the strength of previous researchers' findings, and their relevance to the
research question. A variety of sources help capture a broad spectrum of perspectives
and insights. As such, the synthesized data provides a holistic view of the factors that
affect e-commerce sales, covering various dimensions of pricing, promotion, and
logistics distribution.
Data Analysis

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 Data analysis was carried out using a qualitative descriptive approach. Each
article was analyzed to evaluate the main findings related to the variables studied. It
involves a meticulous process in data coding to identify recurring themes and patterns
across various studies. By organizing the data into coherent categories, researchers can
draw meaningful connections and insights. This analysis process involves encoding
data, identifying key themes, and preparing a synthesis of previous research results.
Through this systematic approach, the study aims to uncover fundamental trends and
relationships that contribute to a deeper understanding of the research topic.
Research Methods
The findings were then synthesized to formulate a hypothesis regarding the
influence of price, promotion, and logistics distribution on e-commerce sales. This
synthesis process integrates various viewpoints and evidence to build a comprehensive
narrative. This approach allows researchers to identify patterns and relationships
between variables that are relevant to the research topic. By combining insights from
various sources, the study produces well-reasoned hypotheses that can be tested in
future research. This method not only highlights existing knowledge but also identifies
gaps and areas for further investigation, providing a roadmap for future studies in this
field.

THEORETICAL FOUNDATIONS
Price
Price is the value or amount of money set to acquire a product or service. In the
context of business, price reflects the costs that consumers have to incur to obtain the
product, as well as the revenue generated for the company. Price not only plays a role
as a tool for measuring product value, but also affects consumer perception of product
quality and attractiveness in the market (Samosir et al., 2024). Pricing strategies involve
various stages, including determining price targets, measuring demand, predicting
future prices, analyzing competitors' costs and offers, and setting a final price that is in
line with the company's marketing strategy (Setiawan et al., 2020). Fair and competitive
pricing can increase customer satisfaction and loyalty, while inappropriate pricing can
negatively impact sales and brand image.
Promotion
Promotion is a communication tool that consists of a combination of various
promotional tools used by the company. In general, these promotional tools have a close
relationship so they cannot be separated, because they support and complement each
other. According to Armstrong et al. (2014), "Promotion (marketing communication
mix) is a specific combination of promotional tools used by companies to convey value
to customers persuasively and build relationships with customers". The main purpose
of the promotion is to inform, influence, persuade, and remind the target customer about
the company and the marketing mix it offers.
Promotion is inseparable from the promotion mix itself. In addition, there is a
communication mix that affects promotion (Nurfitri and Sudartono, 2023). The
communication mix is the company's main tool in communicating its goods and
services through the five tools used. These tools are intertwined and used
simultaneously to achieve effective marketing communication goals, ensuring that the
company's message can be conveyed well to the target market and create the desired
impact.
Logistics Distribution

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 Logistics distribution is the process of managing the flow of goods from the
point of origin, such as a factory or supplier, to the end consumer. It involves various
important elements in the supply chain, including suppliers and transportation service
providers working together to arrange the delivery of goods. According to Ekeskär and
Rudberg in Barata et al. (2024), suppliers and transportation service providers are
central elements in the construction of supply chains, especially when using third-party
logistics arrangements. Panayides (2006) explained that sea transportation plays an
integral role in the supply chain, which resulted in the concept of maritime logistics.
One of the logistics companies in Indonesia is PT. Sarana Bandar Nasional or PT SBN
which has undergone a transformation into Pelni Logistics (Pelayaran Nasional
Indonesia Logistics) and is currently known as PT Sarana Bandar Nasional. The parent
company and its subsidiaries have a vision to become a major logistics company
(Yusadi et al, 2020). An example is the distribution of transportation, sea logistics,
accounting for more than 90% of global trade volume, making it an important
component in the sales supply chain in e-commerce, one of them.
Logistics is divided into 3PL and 4PL. Third Party Logistic Providers (3PLs)
typically specialize in integrated operations, storage and transportation services that can
be upgraded and customized according to customer needs based on market conditions
to meet the demands and requirements of their product delivery services. Services
include added value related to the production or procurement of goods, such as services
that integrate parts of the supply chain. This integrated service provider is known as a
third-party provider of Supply Chain Management (Adrian Logistik in Subagyo, 2022).
Fourth Party Logistic Providers (4PLs) are a further development of 3PLs.
4PLs not only manage and operate logistics functions but also oversee the entire supply
chain, often acting as the sole point of contact for clients. 4PL providers integrate 3PL
resources, capabilities, and technology with additional functions such as project
management, consulting, and strategic planning to provide more comprehensive
logistics solutions (Rusminingsih, 2022).
E-Commerce Sales
One of the companies is E-Commerce such as Shopee, Tokopedia, Tiktokshop
currently has to face a very dynamic and constantly changing environment, especially
related to new technologies and product innovation (Setiawati et al., 2022). Fierce
competition makes companies have to be ready to keep changing so as not to lose to
other competitors. Therefore, companies must create strategies or tactics to innovate so
that they can remain competitive and agile in an uncertain environment. Business agility
is required at all levels of a company's divisions as a way to operate, leading to a
rethinking of organizational structures, influences, and controls that can impact a
company (Gunsberg et al., 2018). In the context of selling e-commerce in Indonesia,
platforms such as Shopee, Tokopedia, and TikTok Shop are very important. E-
commerce sales depend not only on business innovation and agility, but also on the
influence of pricing, promotion, and logistics distribution. Competitive pricing,
effective promotional strategies, and efficient logistics distribution are the key factors
that influence the success of e-commerce sales. These strategies are essential for
maintaining customer satisfaction and increasing sales volume. In a fast-changing and
competitive business environment, e-commerce companies must constantly adapt and
optimize their strategies in terms of pricing, promotion, and distribution to stay relevant
and competitive in the market.

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 RESULTS AND DISCUSSION
A. Research Results
E-Commerce Pricing and Sales
Strategic pricing is an important factor that affects e-commerce sales.
Competitive pricing can attract more customers, increase sales volume, and increase
market share. Conversely, inappropriate pricing can result in decreased sales and lost
customers. Research conducted by Setiawan et al. (2020) shows that price fairness
contributes significantly to customer satisfaction which can ultimately increase sales.
Well-implemented price fairness is also relevant in the context of e-commerce because
it affects the perception of value by consumers and influences their purchasing
decisions. Additionally, research by Samosir et al. (2024) shows that competitive and
fair pricing can increase customer satisfaction and loyalty.
E-Commerce Promotion and Sales
Promotion plays a key role in increasing product visibility and driving sales in
e-commerce. Various promotional strategies, such as discounts, limited-time offers,
and product bundling, can significantly influence consumer purchasing decisions.
Research by Jiang et al. (2015) shows that an effective promotion strategy can result in
a significant increase in sales in e-commerce. Promotions not only help in increasing
short-term sales but also play a role in increasing brand recognition and customer
loyalty. In the context of e-commerce, a well-planned promotional strategy can grab
consumers' attention and encourage them to make a purchase.
Logistics Distribution and E-Commerce Sales
Logistics distribution includes all activities necessary to ensure goods reach
their final destination safely and efficiently (Nastuion et al., 2023). It involves planning,
implementing, and controlling the flow and storage of goods, services, and related
information from the point of origin to the point of consumption. The goal is to meet
customer needs in an efficient and effective way, both in terms of cost and time. In
relation to logistics distribution and e-commerce sales, logistics digitalization plays a
very important role. With digitalization, companies can increase transparency and
efficiency throughout the supply chain, ultimately increasing customer satisfaction. The
use of digital technology enables real-time tracking and management of shipments,
reducing errors and delays, and ensuring that products reach customers quickly and in
good condition (Ricardianto et al., 2023). This is especially important in e-commerce
where the speed and reliability of delivery are key factors in customer satisfaction and
loyalty. Thus, the digitalization of logistics not only improves operational efficiency
but also contributes directly to the increase in e-commerce sales.
B. Discussion
The Effect of Price on E-Commerce Sales
Effective pricing is essential for attracting and retaining customers in the
competitive e-commerce market. Fair and competitive pricing can increase customer
satisfaction and encourage repeat purchases. According to Kotler and Keller (2012), the
right pricing strategy can create price fairness perceived by customers, which ultimately
increases their satisfaction and loyalty. In addition, research by Fadhilla et al. (2019)
confirms that competitive prices can influence customer purchasing decisions and have
a positive impact on e-commerce sales. Price adjustments, discounts, and dynamic
pricing models also play a critical role in attracting and retaining customers in a highly
competitive market.
The Effect of Promotion on E-Commerce Sales
Effective promotion can increase product visibility and attract consumers'
attention, which ultimately increases e-commerce sales. Promotional strategies that

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include discounts, limited-time offers, and product bundling can significantly influence
consumer purchasing decisions. According to research by Kotler and Armstrong (2014),
a well-designed promotional strategy can result in a significant increase in sales in e-
commerce. Promotion also helps in building brand recognition and customer loyalty,
which is crucial for long-term success in the e-commerce business. Proper promotion
can make products more appealing to consumers, increasing the likelihood of purchase.
The Effect of Logistics Distribution on E-Commerce Sales
Logistics distribution plays a crucial role in e-commerce sales. With the
increasing complexity of global supply chains, the use of 3PL and 4PL is helping e-
commerce companies such as Shopee, Tokopedia, and TikTok Shop to manage their
logistics operations more efficiently. 3PL helps reduce operational costs and increase
efficiency by providing better transportation and storage services. Meanwhile, 4PLs
provide more comprehensive supply chain management services, including strategic
planning and project management that help improve overall logistics performance
(Kayikci, 2018).
The use of 3PL and 4PL allows e-commerce companies to focus on their core
activities, such as marketing and product development, while logistics providers handle
the complexities of distribution. Thus, e-commerce companies can improve customer
satisfaction through faster and more reliable delivery, which ultimately has a positive
impact on sales and customer loyalty (Kayikci, 2018).

CONCEPTUAL FRAMEWORK OF THE RESEARCH

Based on the findings of the problem, very relevant previous research, and
discussion of the research, the conceptual framework of this article is arranged as
follows:

Price (x1) H1

E-Commerce Sales (Y)

Promotion (X2)
H2

H3
Logistics Distribution
H4
(X3)

Information:
Describing Simultaneous Tests (Test F)
Describing the Partial Test (t-Test)

Figure 1. Thinking Framework

Research Hypothesis
Based on the conceptual framework of the research presented, the hypothesis of
this research can be formulated as follows:
H1: Price (X1) has a significant effect on E-Commerce Sales (Y).

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 Proper pricing can influence consumer purchasing decisions. Competitive and
fair prices will attract more customers, thus increasing sales. According to Setiawan et
al. (2020), competitive prices play an important role in increasing customer satisfaction
and loyalty, which in turn has a positive impact on e-commerce sales.
H2: Promotion (X2) has a significant effect on E-Commerce Sales (Y).
Effective promotion can increase product visibility and attract consumers'
attention, which ultimately increases e-commerce sales. Jiang et al. (2015) stated that a
well-designed promotion strategy can significantly increase e-commerce sales.
H3: Logistics Distribution (X3) has a significant effect on E-Commerce Sales (Y).
Efficient logistics distribution ensures that products get to customers on time
and in good condition, which is crucial for customer satisfaction and loyalty.
Ricardianto et al. (2023) found that digitalization of logistics can improve efficiency
and transparency in the supply chain, ultimately increasing e-commerce sales.
H4: Price (X1), Promotion (X2), and Logistics Distribution (X3) simultaneously
have a significant effect on E-Commerce Sales (Y).
These three variables together contribute to increasing e-commerce sales. The
combination of the right pricing strategy, effective promotion, and efficient logistics
distribution will have a greater impact on e-commerce sales.

CONCLUSION
This study shows that prices, promotions, and logistics distribution have a
significant influence on e-commerce sales. Competitive and fair pricing can increase
customer satisfaction and loyalty, which ultimately has a positive impact on e-
commerce sales. Effective promotion increases product visibility and attracts
consumers' attention, driving increased sales and brand recognition. Efficient logistics
distribution ensures products are delivered on time and in good condition, increasing
customer satisfaction and loyalty. Overall, an integrated pricing strategy, promotion,
and logistics distribution can significantly improve e-commerce sales performance.
This research provides valuable insights for e-commerce practitioners in developing
effective strategies to optimize sales and customer satisfaction. For future research, it
is recommended to further explore the influence of these variables in a variety of
different e-commerce contexts.

ACKNOWLEDGMENTS
The researcher expressed his gratitude to the previous authors whose articles
and books were used as a reference basis for making literature review articles, until a
literature review article was formed that was suitable for publication nationally.

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