Snapdeal: A Nightmare or a Benefit in Reverse Logistics?

In 2015, Snapdeal, an e-commerce company in India, faced a supply chain situation in reverse logistics. In conforming to the industry trends, the company had a policy on assured product returns, which led to most customers returning to an online merchant for future purchases. However, by the end of 2015, the estimated worth of products returned under the Indian e-commerce platform was $800 million to $1 billion. The rate of returns of online products could add substantial logistics costs to each product return, hampering the industry’s growth. Snapdeal had some serious questions to address. Should it reverse its policy and not give customers a chance to return products? Should the company connect organizations and retailers with customers and derive valuable feedback from them? Should Snapdeal alter its product return policy in favour of a free returns or no questions asked return policy? Would corrective action be required for the e-commerce industry so companies like Snapdeal could create a return policy for customers who had legitimate reasons to return products?

This case is primarily intended for use in MBA courses on management information systems, e-business, logistics management, operations and supply chain management, and contractual aspects of e-commerce in product return policy. After completion of the case, students will be able to<br><ul><li>understand the need, processes, and key elements of reverse logistics in e-commerce;</li><li>assess the strategic advantage of reverse logistics;</li><li>understand and assess the complexities of reverse logistics in e-commerce;</li><li>consider how e-commerce companies can reduce returns;</li><li>understand the business model of an e-marketplace; and</li><li>evaluate the policy framework on product returns for the company and consumer.</li></ul>

• eBusiness, Reverse Logistics