A conceptual framework for reverse logistics challenges in e-commerce

Abstract

Due to increased levels of customisation, supply chains have become more complex as customers demand more in terms of products and service offerings. E-commerce, or online buying, is but one initiative implemented by firms to respond to these demands. However, online buying has resulted in a significant increase in online returns. Online returns are costly and have posed several challenges to retailers and other upstream supply chain members. These challenges impact firms' profitability and, thus, need to be addressed. Unfortunately, many firms find it difficult to track or document reverse logistics, while some blatantly neglect reverse logistics costs. This article proposes a conceptual framework for reverse logistics challenges in e-commerce to address and manage some of the main challenges for online returns. There are several reasons for online returns and firms need to identify these reasons. In doing so, potential solutions are provided to address online returns challenges which in turn may enhance business performance. The conceptual framework provides the blueprint for this.