Abstract
With the rapid development of e-commerce services, online retail has evolved from multi-channel to omni-channel in order to provide customers with more services. However, reverse logistics services (returns and exchanges) have become the target of many fraudulent activities, causing a lot of economic losses for many online retail companies. The current challenge of the traditional countermeasure is it requires a lot of manpower and training resources. In this study, we propose ESPRES, a system that adopts blockchain technology to prevent fraudulent behavior in the process of returns and exchanges with the smart contract and multi-attribute decision-support method to help consumers choose a suitable payment program. A practical implication of this study is that by adopting blockchain technology, a great amount of manpower used on determining whether each return or exchange is fraudulent can be reduced since merchants can check the product ownership. In addition, due to the fact that the footprint of goods cannot be forged, it can also prevent counterfeit or parallel imports of goods.
Highlights
With the development of logistics technology and the rise of e-commerce, consumers can quickly obtain the goods they need
This study aims to integrate blockchain technology and smart contracts and develop an ESPRES (Ethereum Solution to Prevent return fraud of large household appliances in REverse logisticS) system to prevent return and exchange fraud in simulation
The proposed ESPRES System was built on top of a permissionless blockchain technology, which benefits from the transparency and immutability of the data
Summary
With the development of logistics technology and the rise of e-commerce, consumers can quickly obtain the goods they need. A large number of goods are purchased, circulated, transported, and carried out at home and abroad. These activities are closely related to each other. Many companies have begun to integrate mobile platforms, e-commerce platforms, physical stores, and social network services. Omni-Channel Retailing [1] through the integration of online virtual and offline entities can help consumers purchase the goods they need more quickly. The omni-channel world is broadening the scope of channels, and integrating the consideration of customer-brand-retail channel interactions, revenue impact into customer acquisition, frequency of orders, returns, and exchanges
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