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Investigating the return cost for B2C e-commerce

In: Adapting to the Future: Maritime and City Logistics in the Context of Digitalization and Sustainability. Proceedings of the Hamburg International Conference of Logistics (HICL), Vol. 32

Author

Listed:
  • Seghezzi, Arianna
  • Siragusa, Chiara
  • Tumino, Angela
  • Mangiaracina, Riccardo

Abstract

Purpose: Online sales have significantly increased, especially in the realm of the COVID emergency. For B2C e-commerce, reverse logistics is critical: it strongly impacts the willingness of customers to buy online, but it is very expensive for online players, who are striving to find ways to reduce the associated costs. This work aims to define a measure of the return cost and to investigate the main factors affecting it. Methodology: This work combines analytical modelling and simulation. The model allows to represent the reverse logistics process and to define the associated cost; simulation is used in testing the model and analysing different scenarios. The used data were collected from both primary and secondary sources. Findings: The return cost includes three main components (usage of the van, time spent by the driver to travel and to perform collection activities). The application of the model to Milan (Italy) resulted in an average unitary return cost of 2.78€. The variables impacting the most on this cost are the collection density and the travel speed. Originality: This research is a first attempt to propose a measure for the cost of B2C e-commerce returns, and to analytically investigate the variables having the greatest impact in determining such cost.

Suggested Citation

  • Seghezzi, Arianna & Siragusa, Chiara & Tumino, Angela & Mangiaracina, Riccardo, 2021. "Investigating the return cost for B2C e-commerce," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Jahn, Carlos & Kersten, Wolfgang & Ringle, Christian M. (ed.), Adapting to the Future: Maritime and City Logistics in the Context of Digitalization and Sustainability. Proceedings of the Hamburg International Conf, volume 32, pages 169-192, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    • Handle: RePEc:zbw:hiclch:249650
    DOI: 10.15480/882.3999
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    References listed on IDEAS

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    1. Wang, Ziping & Yao, Dong-Qing & Huang, Peiqing, 2007. "A new location-inventory policy with reverse logistics applied to B2C e-markets of China," International Journal of Production Economics, Elsevier, vol. 107(2), pages 350-363, June.
    2. Vakulenko, Yulia & Shams, Poja & Hellström, Daniel & Hjort, Klas, 2019. "Service innovation in e-commerce last mile delivery: Mapping the e-customer journey," Journal of Business Research, Elsevier, vol. 101(C), pages 461-468.
    3. Chao Chen & Shenle Pan & Zhu Wang & Ray Y. Zhong, 2017. "Using taxis to collect citywide E-commerce reverse flows: a crowdsourcing solution," International Journal of Production Research, Taylor & Francis Journals, vol. 55(7), pages 1833-1844, April.
    4. Chao Chen & Shenle Pan & Zhu Wang & Ray Y. Zhong, 2017. "Using taxis to collect citywide E-commerce reverse flows: a crowdsourcing solution," Post-Print hal-01300487, HAL.
    5. Alexander Hübner & Andreas Holzapfel & Heinrich Kuhn, 2016. "Distribution systems in omni-channel retailing," Business Research, Springer;German Academic Association for Business Research, vol. 9(2), pages 255-296, August.
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