The Commercial Impacts of Reverse Logistics in E-Commerce in India

Abstract

In e-commerce business, one of the important factors is effective logistics management, specifically the backend supply chain management. Logistics management involving e-commerce can also be considered as the reverse logistics that is the procedure that works as a profit center, i.e., product returns, repairs, maintenance, recycling, dismantling, etc. This research paper has studied the commercial impact of the reverse supply chain in e-commerce in India. For the unprecedented growth of e-commerce in India, some of the major factors are the emergence of retail as a dominant segment of the market, the dedication of government to 'Digital India', and an Internet user database of 400 million. Whereas, profitability is reduced to an average percentage of 8% and 15% of the total costs of logistics in the industry is represented by the average costs of reverse logistic. This research is centered upon local garments manufacturers and shoe manufacturers which provide 30-45 days of return and face complexities in reverse logistics.