Reverse Logistics in E-Commerce Returns Management: A Review of Advances, Practices, and Emerging Challenges
Abstract
Product returns have become a defining strategic, financial, and regulatory problem for online retail. In 2025 the National Retail Federation projected roughly USD 849.9 billion in returned merchandise in the United States, about 15.8 percent of annual sales, with the e-commerce share materially higher at an estimated 19.3 percent of online sales. This review synthesises academic, practitioner, and regulatory literature on reverse logistics in e-commerce returns management for 2018 to 2025, asking how the conceptual foundations of the field have been reframed, what advances now shape returns handling, what practices firms have adopted, how emerging-market conditions alter the applicability of dominant models, and what remains unresolved. Because reverse logistics sits across operations, procurement, analytics, information systems, marketing, finance, law, and environmental policy, the review draws deliberately on adjacent literatures spanning supplier management, predictive analytics, warehouse robotics and safety, distributed ledger infrastructure, enterprise data governance and cybersecurity, fraud and audit analytics, treasury and financial control, CRM platform engineering, geospatial monitoring, workforce systems, AI governance, trade regulation, and carbon accounting. The field has shifted from cost minimisation toward constrained value recovery, driven by the maturation of artificial intelligence in prediction, inspection, and disposition, the rise of the secondary market as a designed channel, and binding regulation, most visibly the European Union's Ecodesign for Sustainable Products Regulation, which treats returned and unsold goods as a regulated stream rather than a private commercial matter. The synthesis is consolidated into the Constrained Value-Recovery model, a four-layer framework yielding six testable propositions. Persistent gaps are identified in return fraud, the environmental accounting of returnless refunds, the transferability of Global North models, and the absence of longitudinal work linking returns policy to lifetime customer value. P-ISSN 2695-186X
Keywords
Reverse logistics; e-commerce returns; returns management; circular economy; closed-loop supply chains; disposition decisions; return fraud; recommerce; predictive analytics; extended producer respons
References
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