Modelling reverse e-logistics’ factors

Abstract

Business-to-Consumer (B2C) e-commerce business has been growing tremendously due to the technological advancements in e-logistics’ processes. B2C e-commerce has several benefits, such as saving costs by decreasing the use of resources, increasing profits, and enhancing competitive advantage, especially in the pandemic context, thus creating an opportunity for firms in the B2C e-commerce field. However, such an opportunity comes with challenges, and one is related to a significant number of products that are returned to the vendor or manufacturer. Consequently, reverse e-logistics’ (REL) is indispensable for e-commerce transactions. Therefore, modelling REL factors is crucial for e-commerce companies. REL is an inevitable procedure for organizations performing B2C e-commerce. When implemented correctly, REL has proven to have a high significance in terms of decreasing costs, increasing customer satisfaction, and obtaining higher performance efficiencies. However, B2C e-commerce firms, especially in developing countries such as the Middle East, often neglect REL’s importance. The lack of scientific knowledge in REL activities is due to the scarcity of studies in the REL field discussing the importance of emphasizing specific factors that affect REL performance. Therefore, this dissertation focuses on identifying the most important factors that impact REL performance and discusses how REL can, in turn, affect the company’s performance. The methodology used is a literature review, synthesis, survey methods, multi-criteria assessment (DELPHI), multi-criteria scoring, and structural equation modelling (SEM). This study is done in Lebanon and Syria. The results showed that out of the ten factors identified during the literature review, eight factors (management, employees, IT, return policy and guarantee, infrastructure, organizational structure and culture, customer satisfaction, and quality management) have a positive correlation with REL performance. The business research model was created based on B2C e-commerce companies involved in REL performance in Lebanon and Syria, and this gives new scientific insights and knowledge about REL’s specificity in developing countries.