Investigating Returns Management across E-Commerce Sectors and Countries: Trends, Perspectives, and Future Research
Abstract
:1. Introduction
2. Methodology
- RQ1:
- How intensively is research being conducted in the area of returns management in e-commerce? Since when are there articles and surveys on returns management in the literature?
- RQ2:
- Which RM-tasks are differentiated and which tasks are primarily dealt with? Which solution approaches are proposed?
- RQ3:
- Which countries are performing the most research on returns management?
- RQ4:
- In which sectors of e-commerce is research being conducted?
- RQ5:
- What future research needs have been identified in the literature? What are therefore the future research perspectives in returns management?
3. Former Literature Reviews on Returns Management in E-Commerce
3.1. Reverse Logistics
3.2. Closed-Loop Supply Chains
3.3. Returns Management in Online Retail
3.4. Necessity for Own Literature Analysis
4. Returns Management Tasks
5. Descriptive Analysis
- (I)
- Development of the topic
- (II)
- Leading journals
- (III)
- Country affiliation of the authors
- (IV)
- Research methodologies
6. Literature Analysis and Overview
7. Discussion
- RQ1:
- How intensively is research being conducted in the area of returns management in e-commerce? Since when are there articles and surveys on returns management in the literature?
- RQ2:
- Which RM-tasks are differentiated and which tasks are primarily dealt with? Which solution approaches are proposed?
- RQ3:
- Which countries are performing the most research on returns management?
- RQ4:
- In which sectors of e-commerce is research being conducted?
- RQ5:
- What future research needs have been identified in the literature? What are therefore the future research perspectives in returns management?
7.1. Practical Implications
7.2. Future Research in Returns Management in E-Commerce
- Identify unique factors that demonstrate the link between the marketing efficiency of products and their returns.
- Conducting studies that examine the use of marketing instruments over time and across various market conditions and, based on this, develop strategies for retailers in relation to returns.
- Studies that segment customers according to their return behaviour and reasons for returns.
- Investigate why customers choose certain channels to return items and analyse whether channel choice can be encouraged by offering incentives and low-cost options.
- Examine how the type of a product and customer demographics (e.g., gender, age, education) affect product returns and customer loyalty in an omni-channel context.
- Create new scientific methodologies to measure the environmental effects of returns to support more sustainable business practices and the avoidance of product returns.
- Analyse the costs of returns (including handling costs, credit amounts, restocking fees, costs for different returns channels) for an e-commerce retailer to contextualise and differentiate returns avoidance strategies.
- Develop methodologies to assess the environmental footprints of online and brick-and-mortar shopping, aiming to inform and sensitise consumers about the ecological aspects.
- Focusing on techniques such as machine learning or deep learning to analyse more complex data structures and patterns to achieve accurate forecasting results using real-world data from companies from various sectors.
- Create helpful guidelines for researchers and practitioners to successfully apply predictive methods and develop individual models for various companies.
- Conduct in-depth qualitative research to determine the motivations and values of customers who are encouraged and incentivised to return products.
- Advanced analyses of the economic and environmental potential of product returns.
- Studies analysing the impact of incentives for product returns on the return rate and customer satisfaction.
- Research the acceptance and implementation of sustainability practices in the area of product returns, especially in sectors like fashion or electronics.
- Conducting environmental and financial analyses comparing different return channels, laying the groundwork for an intelligent returns management system that guides customers towards the most sustainable option.
- Conducting more studies on returns processing focussing on various sectors (furniture, fashion, office equipment etc.) in order to identify similarities and differences.
- Further development and refinement of prototypes and systems, e.g., those that classify incoming return packages according to the number of products.
- Developing advanced analytical methods using data from corporate ERP-systems and different data sources currently used for returns processing.
- Simulation studies to analyse the status of returns before, during, and after their occurrence in order to optimise the processing of returns in terms of resources.
- Examine how return experiences and any issues in the returns process contribute to bad feedback from customers, especially in the age of social media.
8. Conclusions
Funding
Data Availability Statement
Conflicts of Interest
References
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Search Term | SpringerLink | ProQuest | Science Direct | Web of Science | Scopus | EBSCO | EconBiz | JSTOR | Google Scholar |
---|---|---|---|---|---|---|---|---|---|
“Returns Management” AND “Literature*” | 0 | 0 | 0 | 4 | 3 | 0 | 0 | 0 | 21 |
Author(s) | Year | Focus Area | Research Synthesis | RQ1 | RQ2 | RQ3 | RQ4 | RQ5 |
---|---|---|---|---|---|---|---|---|
Sasikumar and Kannan [13] | 2009 | Reverse logistics | The review of 543 contributions reveals a long-standing and growing academic interest in returns management, with research spanning diverse content issues, solutions, and a global scope, necessitating further exploration to refine and guide future research directions. The classification schemes proposed by the authors emphasise the complexity and potential within this field, highlighting the essential need for a detailed investigation into task differentiation, sector-specific studies, and country-level contributions to the literature. | 1 | ||||
Chan et al. [15] | 2010 | Reverse logistics | By categorising reverse logistics into six distinct research areas and conducting an extensive literature review, the article sets out to fulfil the needs of both academia and industry, guiding academics to concentrate their research efforts effectively and enabling practitioners to derive nuanced managerial guidelines for reverse logistics. This methodological organisation aims to answer key questions regarding the intensity, focus, and direction of research in reverse logistics, as well as to provide a clearer understanding of the field’s scope and the specific decisions faced by practitioners. | 1 | ||||
Setaputra and Mukhopadhyay [14] | 2010 | Reverse logistics | The article addresses the interplay between just-in-time principles and reverse logistics, identifying their environmental benefits and potential conflicts, such as JIT’s demand for stable supply and the unpredictability of returned product volumes in reverse logistics. Through an extensive literature review and a developed model, the study highlights key areas including reverse logistics structure, process models, product life cycle, information systems, and JIT performance, demonstrating the potential of integrating JIT into reverse logistics to enhance the cost efficiency and effectiveness, supported by details outlined in the paper. | 1 | ||||
Hazen et al. [16] | 2010 | Reverse logistics | The study seeks to enhance strategic decision making in reverse logistics by identifying variables critical to the development of a knowledge and decision support system, filling a research gap in integrating returns management with a supply chain firm’s overarching strategy, particularly regarding reverse logistics activities. Through examining reverse logistics frameworks and conducting a content analysis, the authors discover seven influential factors for the disposition of returned products and propose directions for future research in optimising reverse logistics decisions. | 1 | 1 | |||
Wang et al. [12] | 2017 | Reverse logistics | The paper provides a comprehensive bibliometric analysis of reverse logistics literature from 1992 to 2015, identifying key publications and thematic research contributions through co-citation and burst detection analyses using CiteSpace software to guide future research opportunities in the increasingly strategic field of RL. Utilising the impact factor as a novel article selection criterion, the study offers a valuable representation of RL core literature and insights into the RL knowledge domain for both academic and practical advancements. | 1 | 1 | |||
Dias et al. [17] | 2019 | Reverse Logistics | The study conducts a systematic literature review on reverse logistics in retail, specifically focusing on return management from 2007 to 2016, and finds that the topic is still emerging, with only 10 out of 116 references being significantly relevant and most research having an exploratory nature, highlighting the economic and environmental benefits of reverse logistics. The recent uptick in publications, especially in 2016, indicates growing attention in this area and underscores the critical of retail in advancing reverse logistics practices. | 1 | 1 | |||
Rachih et al. [18] | 2019 | Reverse Logistics | This contribution reviews literature on reverse logistics, specifically examining how meta-heuristic approaches have been employed to address complex optimisation problems within the reverse supply chain that are otherwise difficult to solve using exact methods or simulations. The review categorises previous studies by the meta-heuristic methods used and the context within the RL issues they tackle, discussing the effectiveness of these methods and suggesting future research directions and practical applications for the field. | 1 | 1 | |||
Guide and Wassenhove [21] | 2001 | Closed Loop Supply Chains | The article develops a framework to analyse the profitability of environmentally friendly reuse activities, identifying the acquisition of used products as a key factor in the profitable management of product returns, affecting overall firm strategies and operations. This suggests that reuse activities must create value to be viable and that product returns management plays a crucial in the profitability of remanufactured products, calling for future research to quantify the relationship between the acquisition price and the quality of returned products. | 1 | 1 | |||
Borade and Bansod [22] | 2007 | Closed Loop Supply Chains | A systematic literature review of supply chain management is presented, offering a comprehensive view by categorising the principal activities within the supply chain and providing a detailed framework for understanding SCM’s complexity and scope across different industries and companies. The review’s intent is to capture the state of the art in SCM and propose a methodological approach for the in-depth exploration of the field to benefit manufacturers, professionals, and researchers. | 1 | ||||
Giménez and Lourenço [23] | 2008 | Closed-loop supply chains | The purpose of this review is to scrutinise the convergence of supply chain management and the Internet, emphasising how the Internet reinforces SCM through improved real-time information sharing and enhanced collaboration among trading partners. Through a literature review in prominent Operations Management and Logistics journals from 1995 to 2005, the paper distils the influence of the Internet on SCM processes, pinpoints the emergence of e-SCM as a significant topic post-2000 focusing on e-procurement, e-fulfilment, and information flows, and outlines potential trajectories for future research. | 1 | 1 | |||
Krapp and Kraus [24] | 2019 | Close-loop supply chains | This review addresses the growth of supply chain management with a focus on returns, driven by legal requirements and economic factors, highlighting the inconsistency in terms and definitions related to returns handling. Through a state-of-the-art literature review, content, and cluster analysis, it offers a classification that views approaches from a returns perspective, identifying research gaps and providing a road map for future work, while giving practitioners a comprehensive overview of current methodologies in returns management and coordination. | 1 | 1 | 1 | ||
Ritola et al. [25] | 2019 | Closed-loop supply chains | This study explores the informational value derived from product returns, an area where firms have struggled to capitalise effectively, by undertaking a systematic literature review to outline the current state and future research directions. This study identifies three categories of information—operational, product-related, and customer-related—and four value-creating factors, namely strategic IS decisions, organisational learning, information sharing, and technological solutions, offering insights for practitioners and presenting limitations with recommendations for advancing this field of study. | 1 | 1 | 1 | ||
Ritola et al. [26] | 2020 | Closed Loop Supply Chains | A systematic literature review is presented to consolidate research on the informational value of product returns, an underutilised resource in many firms for enhancing products, services, and decision making. It distinguishes three types of informational value (operational, product-related, and customer-related) and four factors that create value (strategic information systems decisions, organisational learning, information sharing, and technological solutions), discusses implications for practitioners, and points out the current research limitations, providing a trajectory for future scholarly work in this domain. | 1 | 1 | |||
Gunasekara et al. [27] | 2023 | Closed-loop supply chains | The article critically evaluates the research progression on circular supply chains, crucial for achieving a circular economy, by examining 131 high-impact articles focused on acquisition, sorting, and disposition decisions from the past decade (2012–2021). The review reveals that, while areas like closed-loop supply chain coordination and remanufacturing are well-represented, gaps persist due to the scarcity of empirical studies, limited validation of mathematical models, economic-centric objectives, and oversimplified behavioural and uncertainty assumptions. The authors advocate for comprehensive research, incorporating joint decision making, cross-sector collaborations, and product-service systems, to bolster the transition towards a circular economy. | 1 | 1 | 1 | ||
Walsh et al. [28] | 2014 | Returns management in online retail | This article investigates the challenge online retailers face with product returns, offering a grounded theory framework derived from the literature insights and interviews with managers, to understand the factors leading to the implementation of a product returns management system (PRMS). The framework also outlines three types of preventive tools online retailers use to lower return rates, along with moderating factors influencing the relationship between the PRMS decision and the efficacy of these instruments, concluding with considerations for future research. | 1 | 1 | |||
Nguyen et al. [29] | 2016 | Returns management in online retail | A systematic review is conducted to explore the intersection of consumer behaviour and order fulfilment in online retailing, aiming to identify relevant order-fulfilment elements, understand their impact on consumer behaviour, and motivate research on consumer service strategies that consider these interactions. Covering literature from 2000 to September 2015 in marketing and operations, the study reveals a gap in understanding how consumer service instruments can influence consumer behaviour, culminating in a unique framework that aligns the elements of order-fulfilment operations with online consumer behaviour, bridging perspectives from both marketing and operations. | 1 | 1 | |||
Zennaro et al. [30] | 2022 | Returns management in online retail | This review investigates the transformation of logistics in the supply chain due to the proliferation of e-commerce, further propelled by the COVID-19 pandemic, with a focus on identifying key logistics research areas as well as relevant factors and performance indicators, particularly sustainability aspects. Through a structured literature analysis, it pinpoints five primary research domains: supply chain network design, outbound logistics, reverse logistics, warehousing, and IT and data management, offering a comprehensive methodological framework and a consolidated set of inputs, outputs, and their interrelationships to managers in implementing or enhancing their e-commerce operations. | 1 | 1 | |||
Ahsan and Rahman [31] | 2022 | Returns management in online retail | The study performs a systematic review of existing literature on e-tail product returns, an emerging research field investigating the return of products sold through online or hybrid channels. Through bibliometric and content analysis of 75 articles, the study maps the academic landscape, identifying the need for further research in areas including omni-channel returns, customer satisfaction, skill development, and technology utilisation. The findings offer e-tailers insights for refining their returns strategies, while the study itself expands our theoretical understanding by clustering key themes and proposing a conceptual framework for future research in e-tail returns management. | 1 | 1 | |||
Duong et al. [32] | 2022 | Returns management in online retail | The review synthesises the body of work in the product returns (PR) domain, employing a rigorous six-step research framework that combines machine learning topic modelling with bibliometric analysis to cluster and identify key themes from a large dataset of academic publications. It discerns that PR research falls into three categories: operations management of PR, retailer and (re-)manufacturer challenges, and customer psychology, proposing five avenues for future study including digitalisation, globalisation vs. localisation of PR processes, multi-layer/multi-channel return policies, customer return behaviour prediction through online data, and customer perceptions at the marketing–operations interface. | 1 | 1 | 1 | ||
Karl [5] | 2024 | Returns Management in Online Retail | The study delves into the predication of consumer returns in the e-commerce sector, highlighting the challenges faced by online retailers due to the high return rates and the importance of effective returns management. By examining previous meta-research and exploring the methodology, data sources, predictors, and techniques used in return forecasting models, the article identifies critical research gaps and proposes future research directions, such as investigating returns timing, developing real-time forecasting systems, conducting cross-industry studies, and analysing the implementation and effectiveness of forecasting systems in e-commerce. Ultimately, this study offers valuable insights to guide future research in returns management in e-commerce, especially regarding the forecasting of consumer returns. | 1 | 1 | 1 |
Cluster | Amount of Individual Journals | Amount of Contributions in Journals | Percentage of Publications to Total |
---|---|---|---|
1 | 36 | 36 | 66.7% |
2 | 4 | 8 | 14.8% |
3 | 0 | 0 | 0.0% |
4 | 1 | 4 | 7.4% |
5 | 0 | 0 | 0.0% |
6 | 1 | 6 | 11.1% |
Total | 42 | 54 | 100.0% |
Country | Authors with Affiliations |
---|---|
Germany | 25 |
USA | 14 |
UK | 7 |
China | 4 |
ID | RM-Task | Methodology | Authors | Title | Problem | Solution |
---|---|---|---|---|---|---|
1 | (1) | (C) | Möhring et al. [1] | Preventive returns management in eCommerce (in German: Präventives Retourenmanagement im eCommerce) | The growth of business-to-consumer (B2C) e-commerce is increasing the issue of consumer returns for online retailers, often due to customers returning items simply because they do not like them. This generates costs for online retailers and has a negative impact on profitability. | The use of big data can decrease the return rates by identifying patterns that predict returns through the analysis of structured and unstructured data within e-commerce transactions. The results of the analysis can be used to initiate proactive measures to prevent returns. |
2 | (1) | (C) | Walsh et al. [35] | Big data: New opportunities in e-commerce (in German: Big Data: neue Möglichkeiten im E-Commerce) | Identifying customers with a high tendency to return goods and recognising possible triggers for a return are important tasks in RM. Conventional data analysis methods quickly reach their limits if all available information needs to be included in analysis. | Big data technology enables the faster processing of large, varied datasets, creating new opportunities in e-commerce such as identifying customers likely to return items and recognising triggers for returns. |
3 | (1) | (C) | Yang [36] | Returns reverse logistics management strategy in e-commerce B2C market | Consumers make their purchasing decisions primarily on the basis of graphic and textual information provided by the seller. They return goods if they are not of the desired quality or size, if parts are lost or if numbers were entered incorrectly when ordering. The resulting reverse logistics is very costly and should be improved. | The article proposes management strategies for the B2C market’s return process and analyses implementation barriers. Correct and complete information should be provided to customers, and an extension of the cancellation period is also a possible action. Sellers need to fulfil customers’ requirements while reducing losses as much as possible. |
4 | (1) | (C) | Walsh and Möhring [37] | Avoiding returns in e-commerce: Can big data help? (in German: Retourenvermeidung im E-Commerce: Kann Big Data helfen?) | In e-commerce, customers cannot physically inspect products before purchase. This increases the returns and drives up processing costs. | The article suggests using “big data” and “text mining” to develop preventative strategies to avoid returns, aiming to reduce handling costs without impacting customer satisfaction. |
5 | (1) | (C) | Möhring and Schmidt [38] | Data-driven company architectures in e-commerce for preventive returns management (in German: Daten-getriebene Unternehmensarchitekturen im E-Commerce für das präventive Retourenmanagement) | Online consumers face high pre-purchase risks and post-purchase dissonance as they cannot physically examine or try products before buying, leading to high return rates. This is intensified by the fact that European consumers have the right to return items without reason within a 14-day period, often free of charge. | In the article, it is proposed that separate decision services are implemented into business processes. With the help of “big data” and “text mining”, the system should ideally be able to carry out historical analysis in real time in order to identify returns behaviour during the purchase process. Predictive and recommendation analyses should also be performed to develop preventive strategies to prevent returns, which would maintain customer satisfaction. |
6 | (1) | (C) | Lockhauserbäumer andMayr [39] | Returns processing in B2C-e-commerce (in German: Retourenabwicklung im B2C-E-Commerce) | Return management in B2C e-commerce is a critical success factor, particularly considering new consumer regulations and the assignment of shipping costs. | Based on practical experiences, the article introduces methods to prevent returns before orders are placed and suggests that customer-friendly return policies can reduce return-related costs. |
7 | (1) | (C) | Deges [40] | Returns controlling in online retail (in German: Retourencontrolling im Online-Handel) | Online retailers must not tolerate returns, as a high return rate causes costs and affects revenue recognition and profitability through delayed transactions. The reasons for returns must be identified and the return behaviour of customers analysed. | Options for action are presented that enable online retailers to influence customer behaviour through preventive and reactive measures, minimise the number of returns and reduce return costs. In addition, key performance indicators are presented in the context of returns controlling, which can measure the success of a company-specific returns strategy. |
8 | (1) | (M) | Asdecker [41] | Returning mail-order goods: Analysing the relationship between the rate of returns and the associated costs | The growth of online retailing is accompanied by liberalised return policies that build consumer trust but also incur significant costs for retailers due to a disproportional relationship between return rates and associated costs. | A circular model for the sales and returns process is proposed to help decision makers evaluate the effectiveness of preventive returns management measures. |
9 | (1) | (M) | Urbanke et al. [42] | Predicting product returns in e-commerce: The contribution of Mahalanobis feature extraction | There is a lack of strategies in the literature for limiting returns that are tailored to individual consumer behaviour. For this purpose, forecasting models that predict product returns in e-commerce are required. | The article introduces a decision support system capable of predicting product returns using a novel approach for large-scale feature extraction. This enables online retailers to proactively address transactions likely to result in returns. |
10 | (1) | (M) | Heilig et al. [43] | Data-driven product returns prediction: A cloud-based ensemble selection approach | The e-commerce apparel sector suffers significant costs due to product returns and there is a lack of data-driven models and approaches for predicting these returns. | The article presents an ensemble selection approach for forecasting product returns in the apparel sector. To manage the computational demands, a scalable cloud-based framework is proposed to streamline the ensemble selection process, offering the potential to reduce product returns, and enhance profit margins for retailers. |
11 | (1) | (M) | Asdecker et al. [4] | Examining drivers of consumer returns in e-tailing using real shop data | There is a research gap in empirical research on the drivers of consumer returns in online retail, which is crucial for making informed decisions regarding return flows. | The study uses linear and logistic regression models to analyse an extensive dataset from an online apparel retailer. |
12 | (1) | (E) | Griffis et al. [44] | The customer consequences of returns in online retailing: An empirical analysis | From a business perspective, product returns are often only seen as a cost driver. However, the operations taken to manage returns have the potential to influence customers’ future purchasing behaviour. | As part of an empirical analysis and using a database with a purchase and returns history, the relationship between operations and repurchase behaviour is analysed. The study suggests that smooth processing can positively impact repurchase behaviour. To this end, the returns management process should be considered an important part of customer service. |
13 | (1) | (E) | Walsh et al. [28] | Preventive product returns management systems: A review and model | Online retailers face tough competition and high customer expectations that lead to high product returns. They must therefore find ways to reduce return rates without losing profits. | The authors propose a framework based on a grounded theory approach that combines literature-based insights with qualitative interviews with managers. The framework outlines why online retailers should implement a PRMS, highlights preventative instruments to reduce returns, and examines factors influencing the relationship between PRMS decisions and the type of instruments used. |
14 | (1) | (E) | Jeszka [45] | Returns management in the supply chain | It is necessary to analyse whether the degree of cooperation in the area of RM between selected retail chains, logistics operators, and suppliers has an impact on customer relations, costs, value recovery, inventory reduction, and profitability. | An empirical study using a questionnaire distributed to sales personnel in the clothing retail industry in Poland evaluated various aspects of reverse logistics cooperation. It highlights the importance of return policies in strengthening customer relationships and identifies the need for retail chains to enhance their return handling processes for better efficiency and increased profitability. |
15 | (1) | (E) | Möhring et al. [46] | Fashion consumer returns in German online retail: An empirical study (in German: Moderetouren im Deutschen Onlinehandel: Eine empirische Untersuchung) | Online retail, particularly in the fashion sector, is a low-margin business overall. For that reason, cost drivers such as product returns need to be identified and mitigated. | The study presents a literature-based model identifying four key influences on product returns. The model was tested using customer data. The findings provide online retailers with starting points for preventive returns management. |
16 | (1) | (E) | Bernon et al. [47] | Online retail returns management: Integration within an omni-channel distribution context | The growth of omni-channel retailing has led to increased levels of consumer returns from online sales. Retailers are faced with challenges in configuring their networks and managing the returns effectively. | The authors use a mixed-method approach, in which both qualitative and quantitative data are processed. The results highlight the need for retailers to improve their returns processes and network design to offer a seamless solution. |
17 | (1) | (E) | Xu and Jackson [48] | Investigating the influential factors of return channel loyalty in omni-channel retailing | In omni-channel retail, there is a lack of empirical studies on customer perceptions of the returns process. | The article uses empirical analysis and structural equation modelling to identify factors affecting customer loyalty to return channels. It also explores internal and external factors affecting perceived risk. |
18 | (1) | (E) | Lin et al. [49] | Analysis of customers’ return behaviour after online shopping in China using SEM | There is a need to understand the impact of various variables on product return activities after an online purchase. In particular, effects on variables related to logistics service and customer intention for general products within e-commerce environment need to be considered. | The authors provide valuable insights for e-commerce platforms to design supply chains that consider product returns and aim to enhance customer satisfaction. Using structured questionnaire data and structural equation modelling, the study finds that return intentions have the most significant impact on product returns, followed by the flexibility of the returns process. |
19 | (1) | (E) | Stöcker et al. [50] | New insights in online fashion retail returns from a customers’ perspective and their dynamics | High return rates in the fashion sector lead to costs for remanufacturing and restocking as well as to inconvenience for customers who have to ship the items. In addition, the environment is negatively impacted by repeated shipping. | The study examines measures to prevent or reduce returns throughout the pre-purchase, purchase and post-purchase phases, alongside technological developments in RM. In an online survey, the customer satisfaction is assessed, taking into account Kano’s “theory of attractive quality” and various customer segments. |
20 | (1) | (E) | Rintamäki et al. [51] | Customers’ perceptions of returning items purchased online: Planned versus unplanned product returners | Managing product returns in online fashion retailing is complex. The challenges lie in how customers perceive the returns process and how it affects their satisfaction, loyalty, and word-of-mouth, especially considering whether returns were planned or unplanned. | Through a combination of interviews and a survey study, the research shows that customers’ perceptions of returns are influenced by monetary costs, convenience, stress, and guilt. Retailers should focus on the customer return experience and adapt their returns strategies to enhance customer outcomes socially, environmentally, and in terms of company performance. |
21 | (1) | (E) | Gaidarzhy et al. [52] | Returns management practices in Swiss online apparel retailing: A multiple case study approach | Increasing product returns cause significant costs for online retailers. Returns are often handled without active coordination or thorough investigation; this needs to be changed. | The findings from multiple case studies and interviews suggest implementing returns management practices that incorporate return policies, product categories, preventive actions, and avoidance practices. Additionally, the management of returns in omni-channel retail (e.g., shops as returns collection/pickup points), the use of artificial intelligence, and the consideration of sustainability in consumer behaviour can reduce product returns and improve company performance. |
22 | (1) | (E) | El Kihal and Shehu [53] | It’s not only what they buy, it’s also what they keep: Linking marketing instruments to product returns | Online retailers use various marketing instruments to increase sales, but often overlook the influence these instruments may have on product returns. | The authors empirically examine whether and how a comprehensive set of marketing instruments (e.g., newsletters, catalogues, affiliate advertising) influence product returns. Data from two large online retailers are used, which shows that return effects vary greatly depending on the instruments. |
23 | (1) | (E) | Asdecker and Karl [54] | Shedding some light on the reverse part of e-commerce: A systematic look into the black box of consumer returns in Germany | The growth of e-commerce poses economic and ecological challenges for the e-commerce industry. Data on the extent and impact of returns over a lower period of time are not available. | The article presents findings from a comprehensive long-term study among German online retailers. The research contributes valuable data that can be used for benchmarking and enhancing the decision-making systems of e-commerce businesses. |
24 | (1) | (E) | Frei et al. [55] | The impact of COVID-19 on product returns management in multichannel retail | The COVID-19 pandemic altered customer shopping behaviours, leading to increased product return rates, returns fraud, and forced retailers to modify their returns processes due to public health measures. | As part of the study, semi-structured interviews were conducted with multichannel retailers. The results recommend that retailers analyse the pandemic-induced changes in returns processes and apply these observations to develop strategies to mitigate the effects of heightened returns and fraud. These strategies should also be effective outside of pandemic circumstances. |
25 | (2) | (C) | Gelbrich et al. [56] | Rewarding customers who keep a product: How reinforcement affects customers’ product return decision in online retailing | Online retailers experience high costs due to frequent product returns under generous return policies that encourage customers to order more. | As part of the concept, it is proposed to incentivise customers to keep purchased items. This promotional strategy can supplement generous return policies. Evidence from experimental studies indicates that giving rewards can significantly boost customers’ intention to keep items. |
26 | (2) | (M) | Asdecker and Karl [57] | Big data analytics in returns management – Are complex techniques necessary to forecast consumer returns properly? | Small- and medium-sized e-tailers, in particular, struggle with forecasting returns due to the growing volume of online shopping and often lack the resources to utilise complex big data analytics methods for planning returns management capacities. | The article analyses the effectiveness of various data analysis methods with differing complexity using real data from an apparel retailer. The findings suggest that while complex methods perform better, a simple model such as binary logistic regression can also provide satisfactory results. |
27 | (2) | (M) | Karl [58] | Data mining in returns management: Evaluation of returns volume forecasts based on the transaction data of a shoe and clothing retailer (in German: Data Mining im Retourenmanagement: Evaluation von Retourenmengenprognosen anhand der Transaktionsdaten eines Schuh- und Bekleidungsversandhändlers) | The question is investigated as to whether the prediction of future returns of the time of ordering with the help of data mining models is promising. | The contribution utilises historical transaction data from a German shoe and clothing retailer, and derives future returns at the time of order applying data mining methods. Various models (e.g., binary linear regression, neural networks, decision trees, etc.) are used and practical recommendations are given on which methods are most suitable for predicting return volumes. |
28 | (2) | (M) | Difrancesco and Huchzermeier [59] | Multichannel retail competition with product returns: Effects of restocking fee legislation | Product returns present challenges for retailers competing across different sales channels, including brick-and-mortar, click-and-mortar, and strictly online. | The study develops a model to understand the competitive dynamics among sales channels concerning product returns, specifically focusing on the existence of Nash equilibrium conditions given different restocking fee policies and the customer perceptions of channel value. It explores the profitability of refurbishing and reintroducing returned items multiple times into the forward supply chain and evaluates the impact of legislation on free returns. |
29 | (2) | (M) | Shang et al. [60] | Using transactions data to improve consumer returns forecasting | While generous return policies to customers boost marketing metrics like willingness to pay and purchase frequency, they also increase the return rate. Return rates are very valuable as input for strategic and tactical decision-making tools. Improving the forecasting accuracy of return rates can lead to considerable savings in the practice of RM. | A forecasting approach is presented that uses transaction-level data (such as purchase and return timestamps) and predicts future return volumes using a two-step “predict–aggregate” process. The developed prediction model is tested on real data from an electronics and a jewellery retailer and has the advantage that the prediction error is relatively small. |
30 | (2) | (M) | Russo et al. [61] | Examining the impact of service recovery resilience in the context of product replacement: The roles of perceived procedural and interactional justice | Retail supply chains face increasing customer expectations and disruptions in product returns management, which can impact customer satisfaction and loyalty. | The authors introduced the concept of service recovery resilience as a supply chain capability that enables firms to meet customer requirements during disruptions, particularly in product replacement scenarios. Utilising procedural justice theory, the research demonstrates that both the justice of the recovery process (procedural justice) and the quality of retailer–customer interactions (interactional justice) significantly improve customer satisfaction and loyalty. |
31 | (2) | (E) | Brusch [62] | Developments and classifications of online shopping behaviour in Germany | Online shopping is evolving with trends like managing product returns and offering same-day delivery. However, understanding and effectively targeting customer segments based on their purchasing behaviour is challenging. | The study offers an overview of new developments in online shopping, particularly in the German e-commerce market. An empirical investigation is conducted to describe and classify German online buyers into groups with similar behaviour, aiming to select and address appropriate customer segments. |
32 | (2) | (E) | De Araújo et al. [63] | An exploratory study on the returns management process in an online retailer | Despite the strategic importance of returns management for reducing costs and providing competitive advantage, there is limited research on the subject. The main weaknesses in the RM process need to be highlighted. | In this contribution, the returns management process of the largest Brazilian online retailer is described and analysed in a case study. The development and performance of the process is evaluated and key areas for improvement in RM are identified. Finally, strategies for creating a more efficient returns management system are derived. |
33 | (2) | (E) | Dobroselskyi et al. [64] | Analysis of return logistics in e-commerce companies on the example of the Slovak Republic | The growth of e-commerce means that returns logistics must be addressed with great attention. Returns logistics in Slovakia should be compared with returns logistics worldwide. | The article studies the current state of returns logistics in global e-commerce and compares it with data from a survey of e-commerce businesses in Slovakia. Based on the responses, statistical indicators are derived. Moreover, best practices can be identified in the face of increasing returns. |
34 | (2) | (E) | Cullinane and Cullinane [11] | The logistics of online clothing returns in Sweden and how to reduce its environmental impact | The increase in online fashion retail is accompanied by a rise in returns, which have negative environmental consequences due to the involved logistics flow. There is a lack of detailed understanding of the returns process, hindering a thorough analysis of its environmental impact. | The article combines case-study interviews and a qualitative expert survey to map out the complexities of the returns process. It emphasises the shared responsibility of consumers, retailers, and carriers in reducing the environmental effects of the returns process. |
35 | (2) | (E) | Overstreet et al. [65] | Stemming the tide of increasing retail returns: Implications of targeted returns policies | Limited research exists on the impact of changes to return policies on customer behaviour, specifically regarding negative word-of-mouth, switching to other retail channels, and switching retailers. | The study employs psychological contract theory and organisational justice theory to assess how changes in return policies affect customer intentions. Through a two-phase mixed-method approach, the research finds that the type of policy change influences negative word-of-mouth. Furthermore, the intensity of a retailer’s communication about these changes moderates and mediates customer reactions. |
36 | (2) | (E) | Karlsson et al. [66] | Retail returns management strategy: An alignment perspective | E-commerce retailers lack strategic alignment in their approaches to managing product returns, which is essential for formulating effective returns management strategies. | The research uses case studies and interviews with managers to reveal alignment as a key factor in proficiently managing returns, along with identifying seven strategic misalignments that weaken this process. It offers a conceptual framework and empirical insights into strategic formation and potential conflicts within returns management. |
37 | (2) | (E) | Zhang et al. [67] | Strategies and practices to reduce the ecological impact of product returns: An environmental sustainability framework for multichannel retail | Retail product returns are not only costly, but also create negative environmental impacts through the transport, packaging, processing, and waste processes. There is a need for strategies and practices that retailers can adopt to manage their returns in an environmentally friendly way. | Multichannel retailers, retail experts, and returns service providers were interviewed. The findings were used to identify barriers for implementing environmental sustainability in returns management, outlining strategies to minimise the environmental impact of returns and creating a framework for sustainable returns management. |
38 | (2) | (E) | Martínez-López et al. [68] | Reducing e-commerce returns with return credits | The most common returns in e-commerce are satisfaction-related returns (due to colour, style, and material). It should be analysed whether these returns can be reduced, e.g., through the use of return credits (a maximum free returns amount). | The authors conducted an experiment to evaluate the use of return credits to reduce satisfaction-related e-commerce returns. The experiment testing found that return credits can effectively prevent returns, with higher credit amounts causing fewer negative side effects. |
39 | (3) | (C) | Guide and Wassenhove [21] | Managing product returns for remanufacturing | Companies are encouraged to offer environmentally friendly and reused products. However, taking back the products for reuse only makes sense if the activities are profitable and contribute to shareholder wealth. | The article develops a framework for analysing the profitability of product reuse activities and suggests that the management of product returns, specifically the acquisition of used products, can be optimised to ensure value creation and profitability. |
40 | (3) | (M) | Difrancesco et al. [69] | Optimising the return window for online fashion retailers with closed-loop refurbishment | To attract customers, online retailer must address their needs, i.e., offer free returns and the option to return goods as late as possible. The key challenge for online fashion retailers is therefore to find a compromise between customer expectations for generous return policies and the high costs associated with re-transportation and product devaluation. | The contribution models closed-loop supply chains, employing a queueing system to optimise the performance of forward and reverse logistics. The model provides insights into strategically setting return policies and deciding between refurbishing returned items or selling them on a secondary market. Among other things, the economic effects of multiple loops through the supply chain and controlled delays in reprocessing are analysed. |
41 | (3) | (M) | Tanai [70] | Framework for stochastic returns management in a closed-loop supply chain | In reality, some of the products originally sold are always returned by customers for a full refund. Due to the stochastic value of returns, it is not easy to identify the profit for a company that maintains a closed-loop supply chain and works with a third-party reverse logistics provider (3PRLP). | In the article, the forward flow between the supplier, the retailer, and the 3PRLP is modelled by a lot-size-order-point inventory policy. A queueing network is used for the return flow activities of the 3PRLP. Numerical studies show that the profit of both companies from handling returns increases as the return rate increases. |
42 | (3) | (E) | Mollenkopf et al. [33] | Managing internet product returns: A focus on effective service operations | An effective returns management system reduces the costs associated with returns. It can also make a significant contribution to improving customer relationships and customer loyalty. | The authors use data from a survey of 464 customers across 5 online retailers to show how effective returns management systems can positively influence customer loyalty intentions. They present a structural equation model illustrating the impact of returns service quality and perceived value on loyalty. |
43 | (3) | (E) | Hjort et al. [71] | Customer segmentation based on buying and returning behaviour | Fashion e-commerce businesses traditionally use a one-size-fits-all strategy, not leveraging consumer returns data for service differentiation, which could impact profitability and resource allocation. | The article empirically examines whether a one-size-fits-all strategy is appropriate for fashion e-commerce and whether returns have the potential to be profitable. Transactional sales and returns data are analysed to categorise customers based on their purchasing and returning behaviours. The results argue for a differentiated service system that saves resources and links the SC to customer purchase and returns behaviour to avoid over- or under-servicing customers. It turns out that the most profitable customers may be those who frequently return goods. |
44 | (4) | (M) | Stevenson and Rieck [72] | Digital transformation for incoming returns: Classification model for pre-sorting returns parcels (in German: Digitale Transformation im Retoureneingang: Klassifikationsmodell zur Vorsortierung von Retourenpaketen) | In order to avoid inefficiencies in the sorting of packages returned by customers, there is a need for good classification in the returns process. | A classification model is developed that uses real-world data from a German B2C online retailer and a three-stage calculation scheme to predict the number of products in a return package. In this way, less complex and labour-intensive returns can be separated and processed accordingly. The system has been cost-effectively integrated into the existing IT-infrastructure, resulting in a significant improvement in the digitalisation and efficiency of the returns warehouse, as confirmed by a case study. |
45 | (4) | (E) | Weinfurtner et al. [73] | Effects of digitalisation in retail using the example of the returns process | E-commerce retailers seek ways to optimise and reduce the expenses associated with returns. The techniques and elements of advancing digitalisation can be used to support returns processing. | The article explores how technologies can transform the returns process. It introduces digital elements that could significantly change how this process is managed in the future, such as software systems for tracking returns, big data for forecasting return volumes to improve staffing support systems for returns registration (RFID, smart glasses, voice input), and robotic systems. A survey of experts led to the conclusion that data collection and returns processing must be more automated and standardised in the future. |
46 | (4) | (E) | Russo and Marsogo [2] | Searching for the right operations strategy to manage the repair process across the reverse supply chain | Retailers need to strategically manage product returns and repair processes, deciding whether to outsource or insource these operations efficiently. | The contribution uses action-based research on a case study of an Italian online retailer to examine different repair process strategies. Through analysing return rates and the cost-benefit of each strategy in relation to outsourcing-insourcing decisions, it helps determine the best practice for managing the repair process. |
47 | (4) | (E) | Stevenson and Rieck [74] | Optimisation of inbound returns processes: E-commerce case study for the B2C sector (in German: Optimierung der Prozesse im Retoureneingang: E-Commerce Case Study für den B2C-Bereich) | B2C online retailer with non-digitalised processes face the challenge of processing returns. During the COVID-19 pandemic, these challenges were further aggravated, as the existing logistical processes could not keep up with the rise in orders and returns. Incoming returns can be categorised into classes and then processed according to the classes. | A case study analyses and optimises the returns process in the returns warehouse of a German online retailer for furniture and home accessories. Using Frequent Itemset Mining, common return characteristics are identified and, based on these findings, classes are created for categorising incoming returns (e.g., returns with one product and low/high weight and returns with several products). It is recommended that returns with several products are processed by experienced employees. |
48 | - | (M) | Muir et al. [75] | A simulation model of multi-echelon retail inventory with cross-channel product returns | Retailers face challenges in managing inventory effectively in cross-channel retail environments, particularly when processing product returns with non-stationary demand. | The study examines the impact of returns processing structures on multi-echelon inventory system performance under different product returns policies. Using a contingency framework and a discrete-event simulation model with data from a large U.S. retailer, it is found that aligning the logistical structure with a cross-channel returns policy enhances inventory effectiveness. |
49 | - | (M) | Jiang et al. [76] | Integrating order delivery and return operations for order fulfillment in an online retail environment | Online retailers must manage both delivery and return orders cost-effectively while sharing and coordinating fulfilment resources to meet promised customer time windows. | The article proposes a flow-based model to optimise the allocation of inventory, selection of fulfilment centres for returns, vehicle routing and scheduling, and delivery and return itineraries. A hybrid algorithm combining variable neighbourhood search and adaptive large neighbourhood search is developed to tackle this complex problem. |
50 | - | (E) | Brusch and Stüber [77] | Trends in logistics in the German e-commerce and the particular relevance of managing product returns | Online retailers are challenged by the major trends in e-commerce. They need to adapt to multiple sales channels, integrate new payment methods, offer same-day delivery, and manage product returns effectively. | The study provides an overview of major trends in e-commerce and conducts an empirical analysis of German online buyers to identify key factors influencing their behaviours. In this way, four significant factors are identified, which are then used to differentiate buyers into four distinct groups, aiding retailers in addressing customer requirements. |
51 | - | (E) | Chen et al. [78] | Ensuring returns management software effectiveness through joint development orientation | There is a need to assess the impact of customisable software on improving the returns management. | The contribution focuses on the effectiveness of customisable returns management software, grounded in service-dominant logic and using empirical survey data. It confirms that effective returns management software can enhance a company’s market performance and highlights the importance of a joint development orientation between companies and software providers to achieve effective software solutions for returns management. |
52 | - | (E) | Chen et al. [79] | Measuring returns management orientation | The concept of returns management orientation (RMO) reflects the recognition of the returns process from a managerial perspective. Management orientation is an important factor for improving returns management that is largely ignored. | In the article, a conceptualisation of RMO is developed through expert interviews and literature review, followed by empirical survey data to validate a new RMO measurement scale. This RMO measurement scale can be a useful tool for companies to assess the level of emphasis placed on returns management within their organisation. |
53 | - | (E) | Chen et al. [80] | Returns management employee development: antecedents and outcomes | The importance of employee development within the area of returns management is largely unrecognised, leading to challenges in effectively handling product returns. | The study empirically examines the impacts of employee development in returns management. The findings suggest that supply chain learning, returns management orientation, and information support significantly contribute to employee development in this domain. |
54 | - | (E) | Patale and Zohair [81] | A theoretical framework for evaluating returns management performance of online retailers using fuzzy analytic hierarchy process | Online retailers lack a comprehensive framework to measure returns management performance, making it challenging to identify areas for improvement. | A framework is proposed that identifies the key components of returns management and uses the fuzzy analytic hierarchy process to prioritise criteria and assess performance, taking into account the subjective importance of 16 professionals for each criterion. The study provides a structured approach for online retailers to evaluate and enhance their returns management performance, with a focus on general and reverse logistics capabilities. |
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© 2024 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).
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Stevenson, A.B.; Rieck, J. Investigating Returns Management across E-Commerce Sectors and Countries: Trends, Perspectives, and Future Research. Logistics 2024, 8, 82. https://doi.org/10.3390/logistics8030082
Stevenson AB, Rieck J. Investigating Returns Management across E-Commerce Sectors and Countries: Trends, Perspectives, and Future Research. Logistics. 2024; 8(3):82. https://doi.org/10.3390/logistics8030082
Chicago/Turabian StyleStevenson, Anthony Boyd, and Julia Rieck. 2024. "Investigating Returns Management across E-Commerce Sectors and Countries: Trends, Perspectives, and Future Research" Logistics 8, no. 3: 82. https://doi.org/10.3390/logistics8030082