Directed Research Project

The Impact of the Covid-19 Crisis on Reverse

Logistics and E-commerce: The Case of Amazon USA

Raas Masood
ILMW2018539015

Supervisor: Professor Zhu Mingxia

International Graduate Program

University of International Business and Economics (UIBE)

March 2021
 TABLE OF CONTENTS
Abstract ................................................................................................................................4

Chapter 1: Introduction ........................................................................................................5

1.1 Significance of the Research .....................................................................................5

1.2 Objectives of the Research .......................................................................................5

1.3 Research Method.......................................................................................................5

1.3.1 Adopted Research Method .................................................................................5

1.3.2 Research Design.................................................................................................6

1.3.3 Data Collection ....................................................................................................6

1.4 Structure of the Research ..........................................................................................7

Chapter 2: Literature Review...............................................................................................7

2.1. Logistics ....................................................................................................................7

2.2 Modern Logistics ........................................................................................................8

2.3 Reverse Logistics.......................................................................................................8

2.3.1 Returned Products. .......................................................................................... 10

2.3.2 Reverse Logistics Management: 3PL and In-House ....................................... 13

2.3.3 Reverse Logistics and its Impact on the Environment .................................... 14

2.3.4 Benefits of Reverse Logistics in a Company ................................................... 15

2.4 Logistics in E-commerce......................................................................................... 15

2.4.1 Introduction to E-commerce ............................................................................. 15

2.4.2 Advantages of E-commerce............................................................................. 17

2.4.3 Relationship between Logistics and E-commerce........................................... 17

2.5 Research Gap and Derived Research Questions .................................................. 18

2.5.1 Research Gaps Identified ................................................................................ 18

2.5.2 Derived Research Questions ........................................................................... 19

Chapter 3: Case Study ..................................................................................................... 20

3.1 Amazon: Company Background ............................................................................. 20

3.2 Impact of COVID-19 Pandemic on Amazon........................................................... 21

3.2 Amazon Reverse Logistics Strategy: Returned Items ........................................... 24

3.4 Impact of COVID-19 Pandemic on Amazon´s Reverse Logistics: Returned Items26

2
 3.4 Summary of the Case Study................................................................................... 28

Chapter 4: The Impact of COVID-19 Pandemic on Reverse Logistics and E-commerce30

4.1 Impact of Covid on Reverse Logistics and E-commerce ....................................... 30

4.2 Business Evolution after this COVID-19 Crisis ...................................................... 33

4.3 Logistics Evolution after this COVID-19 Crisis ....................................................... 36

Chapter 5: Conclusion ...................................................................................................... 38

5.1 Research Results.................................................................................................... 38

5.2 Research Limitation ................................................................................................ 40

5.3 Future Research ..................................................................................................... 41

References........................................................................................................................ 42

3
 Abstract

This research project attempts to study the impact of COVID-19 on reverse logistics and
electronic commerce, which are of vital importance nowadays.
The methodology that we have used to develop this research paper is the qualitative
research case study method. This case study is mostly based on qualitative techniques and
secondary data. Through this research, we will obtain an understanding of the evolution of the
two sectors that we are focusing on, and the impact that the COVID-19 pandemic has had on
these two sectors and analyzed the consequences and direction that may take in a near future.
As we will talk about a recent topic, there are few studies and manuals available to obtain
quality information. Because of this, it has been necessary to investigate multiple blogs,
explanatory videos, and articles in professional magazines and newspapers to extract the
necessary data for the preparation of this Research.
We will analyze logistics and its implications in the e-commerce world. Although, during
the COVID-19 pandemic, most consumers' attention was focused on purchasing goods, nobody
paid much attention to returns. Returns is a huge challenge facing companies through reverse
logistics. We will explain the term reverse logistics, its characteristics, and its significance in the
supply chain, environment, and electronic markets.
We will also talk about electronic commerce, its evolution over time, and the importance it
has acquired recently and for many Internet companies today, especially for new business
models, which are introducing logistics in online stores.
We will also expose, the impact that, in a minimum time, the COVID-19 has had on our
lives and businesses, completely changing the way we consume, and see the world as we did
just 12 months ago. Here, we will conduct a brief analysis of how COVID-19 has affected large
companies, such as Amazon USA.
What we want to achieve with this Research project is to relate two sectors that seem very
distant, to show that a closer relationship between both sectors is needed for the proper
functioning of the supply chain: one sells and the other distributes. We want to show that we live
in a time of rapid changes in the way we consume and do business. Also, we want to demonstrate
that these changes bring consequences, or even carry consequences that affect us all.

Keywords: Logistics, e-commerce, COVID-19, Reverse Logistics, Amazon,

Returns.

4
 Chapter 1: Introduction

1.1 Significance of the Research

In recent years, we have witnessed the advancement of new technologies in our lives,
how we have changed the way we consume, and how companies have also changed the way
they sell.
Companies do not only seek to produce at low prices and have a large volume of sales,
now they are concerned about the customer's experience, about their satisfaction, creating a
quality product, and having good Customer Service; especially in returns of items that are
acquired, either because the items have a defect or because the customer has not been fully
satisfied with it.
This paper will focus on the impacts that the COVID-19 pandemic is causing on logistics
and e-commerce together. Ecommerce and Reverse Logistics were having a huge growth before
the pandemic started, but since the pandemic has started there has been an explosive growth in
both sectors that is worth analyzing.
Through effective reverse logistics, we can obtain favorable results for the economy and
environment of the world. However, the impact of the Sars-Cov-2 pandemic faces new challenges
in reverse logistics.
According to Tech HQ, the global reverse logistics market is expected to reach $604 billion
in the following five years. The growth of e-commerce orders and the closure of several retail
stores have led to a substantial increase in revenue in the near term. If it was tough to manage
returns and reverse logistics before, it has now become a key operational issue that retailers,
logistics suppliers, distributors, and supply chain leaders cannot avoid. (ELIAV, 2020)

1.2 Objectives of the Research

The objective of this research is to increase awareness of the importance of logistics in e-
commerce, focusing directly to Reverse Logistics and the impact that this area has suffered during
the pandemic of COVID-19.
With the COVID-19 pandemic causing store closures, effective reverse logistics are on
the rise. This research study will explain how effective Reverse logistics would lead to successful
ecommerce, focusing on the case of Amazon USA.
Amazon is a good example of an e-commerce company, that has been growing and with
cutting-edge strategies in the logistic world.

1.3 Research Method

1.3.1 Adopted Research Method

5
 The project is based on our research questions and orientation, and we choose to use a
qualitative research approach.
Qualitative research is conducted through the disclosure of issues, understanding
occasions marvels, examining human conduct and thoughts, and answer the inquiries to get
knowledge. It is the scientist used to characterize issues or issues way (B. MERRIAM, 1998)
Qualitative research is examining the comprehension of the wonder. It is an examination to
address the "why" issues.
Normally, qualitative research should initially gather, arranging material, and afterward
deciphering a gigantic mass of information. The information assortment measure ordinarily
performs through top to bottom meetings, participatory perception, or meaning investigation
techniques (BERNARD, 2000).
By picking the philosophy of the subjective exploration the following stage is to choose the
examination plan.

1.3.2 Research Design

According to the Sacred Heart University Library: Research design involves our chosen
overall strategy, which integrates the different components of the research coherently and
logically to ensure that we will effectively solve the research problem. The function of research
design is to ensure that the evidence obtained enables us to solve the research problem as clearly
as possible. To obtain evidence related to a research question, it is normally necessary to specify
the test theory, evaluation procedure, or the type of evidence required to accurately describe the
phenomenon (SACRED HEART UNIVERSITY, n.d.)
As we have already mentioned in the previous section, we will apply qualitative research
methods and use the strategy of case study research.
A case study is an in-depth study of a specific research question, not an exhaustive
statistical investigation. It is usually used to narrow a very broad field of research into one or a
few easy-to-study examples. Case study designs are also useful for testing whether specific
theories and models apply to phenomena in the real world. If little is known about a phenomenon,
this is a useful design (SACRED HEART UNIVERSITY, n.d.)
There are several types of case studies, each based on assumptions and/or ideas to be
proven. The project will use explanatory case study methods. Explanatory case studies focus on
explaining the problem or phenomenon.
In summary, this research will be written under the Qualitative Method focusing on
Explanatory Case Study.

1.3.3 Data Collection

Two types of data can be collected: primary and auxiliary data. We have decided to use

6
secondary data. As this is such a recent topic, there are few studies and manuals available to
obtain quality information. For this, it has been necessary to investigate multiple blogs,
explanatory videos, and articles in professional magazines and newspapers to extract the
necessary data for the preparation of this Research. Secondary data were used on comparisons,
construct, explore, and explain ideas.
The secondary data have been interpreted and they are called additional data
(WALLIMAN, 2005). The main sources for secondary information could be libraries, archives,
museums, collections, government departments and commercial organizations, and Internet
websites.

1.4 Structure of the Research

The research is structured in 5 sections. The first one is the introduction of the research.
The second section is the literature review for this study, which is mainly focused on logistics and
ecommerce. In this section, the theory is combined and discussed. The next section will present
the case analysis and its data, which were collected and evaluated. In this section, the company
background, the reverse logistic strategy, and the summary of the case. The fourth section of this
research paper focuses on the impact of COVID-19 in logistics and businesses.
The last section presents the research result, the limitations of this research paper and
offers the direction for future research.

Chapter 2: Literature Review

2.1. Logistics
According to historians, the word logistics comes from the Greek "Logis," which meant
"calculation," and from the Latin "Logistics," and was commonly used in terms of the military. It
was used to define the supply of all elements that were necessary to combat, such as food,
weapons, the location of the camp.
But logistics, very much following the words of Antonio López Carmona on his blog, an
expert in logistics, "goes back to the origin of the human being, developing in parallel. The concept
was not considered at that time, but individuals or families already used logistics in their daily
lives. In this way, they stored the food in the caves to have food during the cold and long winter,
managing the supply process and the inventory control. As human beings and society evolved,
coordination problems began to arise in the production line, the supply of raw materials, the
storage of the product, and its distribution. The logistics chain began to be more
complex” (PEREZ CARMONA, 2014).
We understand logistics as a process characterized by the coordinated movement of
resources, that is, storage and transfer of people, goods and services, equipment, raw materials,

7
etc., between places of origin, product completion, and place of consumption to satisfy the needs
of consumers and always optimizing the existing resources to guarantee an optimal result.
We can also define it as an "intermediary activity" or "bridging activity" between
manufacturing and the market.

2.2 Modern Logistics

Modern logistics, also known as "logistics 4.0." According to this definition, we are
immersed in the 4th industrial revolution. Logistics 4.0 is linked to an automated and
interconnected production, based on the use of cybernetic physical systems. It would be about
automating and robotizing factories ("Smart factories") to produce products with connectivity and
intelligence (Smart products). These products will be aware, connected, smart, and adaptable.
In other words, we are witnessing the hybridization of the physical world with the technological
world, blurring the barriers between both concepts.
Logistics 4.0 seeks to establish smart logistics models by applying technologies such as
the Internet of Things (IoT), cloud computing, artificial intelligence, big data, or augmented reality
to connect customers, products, and suppliers. Simplify various processes and operations
(RECONDO, 2020).
According to the blog of Sebastian Brau, it is said that industry 4.0 offers innumerable
opportunities and benefits for all companies worldwide. Logistics 4.0 will present a challenge for
smaller businesses, an obstacle that they will have to overcome (BRAU, 2018).
Without a doubt, the big winner is e-commerce in 2020. With the confinement and
lockdown, online purchases have increased, and it is expected that in the future there will be a
new online target audience.
Regarding the logistics industry, a changing and growing trend is foreseen. The
construction of new areas for the production, storage of products and materials, leaving aside,
the term "just in time,” which is useless during times of crisis like the one we are currently
experiencing.

2.3 Reverse Logistics

According to the Hiberus blog, a Spanish technology company, “reverse logistics is

responsible for the recovery and recycling of containers, packaging, and hazardous waste; as
well as the processes for returning excess inventory, customer returns, obsolete products, and
seasonal inventories." With return of the merchandise to main warehouse, these products can be
reused, recycled, or simply destroyed (RENTERO, 2018).
The term reverse logistics was initial utilized during the 1990s and thirty years later, this
term is solidly dug in the supply chain area. It means the movement of goods from a typical

8
destination back into the supply chain. The administration or process after the sale of a product
includes reverse logistics (NARASHIMMAN, p. 4)

Figure 1. Reverse Logistics Flow

Source: Locus Document “The History, Evolution, and Future of Reverse Logistics”
(NARASHIMMAN, p. 4)

According to the journalist, Maghan McDowell “returns are an inconvenient challenge for
retailers”. She also says, “Bloated returns [during the pandemic] … could place added stress on
an already-under pressure e-commerce infrastructure” (MCDOWELL, 2020). Although everyone
knows the concept of returns, the term reverse logistics may not be very common. GoShare
analyst explained, “Nearly thirty years after the first time used the term, it has become firmly
cemented in the lexicon of supply chain management professionals and the practice of reverse
logistics continues to increase in importance to businesses, retailers, and manufacturers. In the
broadest sense of the term, reverse logistics refers to the movement of goods from their typical
destination back into the supply chain. Whereas logistics deals with the process of getting goods
to the customer, a reverse logistics system focuses on getting the items back” (GOShare, 2019).
Reverse logistics can involve consumers, retailers, logistics providers and manufacturers,
and locations. According to Bringg, an international logistics company, reverse logistics
procedures are divided in two types: planned and on-demand. (ELIAV, 2020).
• Planned Reverse Logistics: This type of reverse logistic can itself be a business
model. Most of these logistics models are encouraged by eco-conscious
consumers. It can include B2C retail rents and recycling furniture or appliances.
B2C rentals are common in companies that offer a subscription, such as filtered
water; fashion, furniture, and equipment rental; and the online recycled industry
(ELIAV, 2020).
• On-Demand: This is the more traditional form of Reverse Logistics. This goes
“against” standard logistics model. Some examples are customer product returns,
failed delivery attempts, damaged product returns, B2B returns (ELIAV, 2020).

When selling online, companies must choose a cost of shipping to the appropriate product
depending on the regions where they operate, the value of the product and, in case there is a
cost of collection for the return of the product.
Companies that operate online are exposed to a higher number of returns than traditional
9
businesses. In the case of returns, and to minimize the cost of these, companies that operate
online, according to "Shopify", must have customer support to answer questions about your
products, since it generates confidence towards the brand on the part of the consumer and thus,
we will avoid future returns. Companies must also have qualified and trained staff to solve any
problem that may arise in a purchase, return, or shipment. (LANE, 2014)
In the online version of the newspaper "El Mundo" of January 13, 2019, we found that the
total of products returned are 20% and, in times like Christmas, can reach 50% of total sales. One
of the sectors in which more products are returned is fashion, in which about 30% of the total
garments purchased online are returned. With these statements, we can know that a return
costs the double than the delivery, since "the logistics process is repeated, but in reverse," says
Ana García de Madariaga, the partner responsible for digital services at KPMG (VILLAECIJA,
2019).
Also, reverse logistics will be crucial in the relationship between the customer and the
online business since it can define the customer's behavior in the future when it comes to buying
or not buying from this online store.
According to Francisco Aranda, secretary-general of UNO, on "Business Organization of
Logistics and Transportation", cites in this article that in 2018, 24.5% of online buyers returned
some product (BYCOMERCIAL, s.f.).

2.3.1 Returned Products.

According to the IMF Business School logistics blog, there are 3 possible options for
returned products:
• Suitable for its return to the market.
The product is in perfect condition and can be sold again at the same price. It does not
present damages or defects, and the cost of reintegration is minimal, both administrative and
personnel cost (PALACIOS, 2016).
• Reconditioning the product.
The product being returned is damaged, either due to use or incorrect handling of the
product. It is required that each product, individually, be removed from the administrative system,
repaired and then, registered again as a finished product and be able to proceed to its sale again,
but at a lower price than the market price (PALACIOS, 2016).
• Recycling, the product is a waste.
Sellers need a space in the company where they can process the product correctly for
disposal depending on its composition and cost (PALACIOS, 2016).
Consistent with this information, we found in a newspaper article "El Mundo”: KPMG points
out that "It is important to carry out strategies that allow the business to relocate returned products
to avoid a total loss of product value". Francisco Aranda explains that, once the product leaves
the head office, it no longer returns, but stays in the stores until they are sold again, and the
10
defective products go directly to the outlet (VILLAECIJA, 2019).
According to a study by Magneto IT Solutions, 40% of shoppers purchase products that
they intend to return. In addition, 47% of buyers will not buy anything if they must pay for return
shipping. In addition, 20% of online sellers must increase product prices to offset the return-
shipping costs (MEGHANI, 2019).
Consistent with Forbes magazine, the return on e-commerce is much higher than the
return on physical stores, which is an important but necessary cost for online retailers to conduct
business. Although the categories of returns vary greatly, online returns account for approximately
25 to 30% of orders, while returns in brick-and-mortar stores are around between 8 to 10%. (E.
KOHAN, 2020).
As illustrated, higher e-commerce business deals imply elevated online returns. The main
factors for the shift to digital shopping are the convenience of roadside and in-store pickup,
physical store occupancy restrictions, and consumers' discomfort with physical store shopping
due to the pandemic. As Inmar Intelligence said, that before the pandemic, 78% of shoppers
expressed their willingness to return goods in person, and since the pandemic has started, nearly
60% of people still prefer to return to online shopping physically. (E. KOHAN, 2020).
The online products with the most returns we can find are clothing and shoes. The returns
of these products are more than half of the purchases. After them, we can find 42% of electronics,
30% of jewelry or accessories, 22% of health and beauty products, and 21% of entertainment
products. According to Magneto IT Solutions, the most common reasons for returning a product
bought online could be: Defective/poor quality, bought the wrong item, buyer´s regrets, found a
better price somewhere else, gift returns, the wrong size, return fraud, the item did not match the
description and item was delivered late (MEGHANI, 2019).
When we are talking about returning items, we must keep in mind how to make the
returning experience easy and fast for the customer, so they do not feel frustrated.
According to Bloomberg, there are some frustrating features for the customers during the
online return experience, which are the following: Repacking the item, taking the item to the post
office, waiting for the refund, tracking the status of the returned item, and printing a shipping label.
See the picture below:

11
Figure 2. Frustrating features for the customers during the online return experience
Source: Crain´s Chicago Business article (HALZACK, 2020)

As reported through IMG METAPACK research, a good returns experience means loyal
customers:
• 69% of shoppers confirm that the quality of the returns service strongly influences
their buying decision.
• 57% of consumers are more likely to choose retailers with an easy return process.
• Three-quarters of consumers say returns are an essential factor in their choice of
retailer, and 82% agree they are a normal part of shopping today.
• The top 5% of returners are generally 30% more valuable (average basket value)
if the returns service is good.
• 92% of customers who received a good returns experience make repeat
purchases (STARKEY, METAPACK, & IMRG, 2020).

Accenture report suggests that effective management of returns can improve customer
profitability by almost a third (29%) over three years by:
• Driving additional purchases (12 – 25%)
• Reducing marketing costs (18 – 39%)
• Reducing lost profit from returned items (26 – 50%) (STARKEY, METAPACK, & IMRG,
2020).
To improve returns logistics; new policies, processes, and technologies must be created
to allow accurate measurements and diagnoses to make and implement decisions more in line
12
with each situation.
Returning goods is a challenge for sellers and customers, and the Covid-19 pandemic is
adding stress to a tight supply chain. There was already National Day of Returns on January 2nd,
2021, and the shipment volume of parcels was estimated to increase by 19%. During the holidays,
especially through December, logistics companies have been facing the challenge of handling
past peak periods. Nevertheless, new holiday data was released in February 2021, which showed
that the maximum date for direct-to-consumer brands to receive customer returns was December
26, 2021 (DECK, 2020).
This result about “National Return´s day” shows us the big challenge that Reverse
Logistics has in returned products. Brands should plan their return strategy very carefully to
contact customers when it is needed, instead of waiting until January 2nd and deliver the correct
package even before they returned the unwanted package.

2.3.2 Reverse Logistics Management: 3PL and In-House

Reverse logistics systems can be owned by the company or external. Which are described
below:
• In house
In this case, the company designs manage, and control the system of collection, recycling,
and reuse of materials and products for their reincorporation from the supply chain and their
subsequent sale, creating a supply system closed. The characteristics that define these
companies are that their products are unique, they have a complex production system, they are
leaders in their sector, and, they have very advanced technology and large capital investment
that allows them to carry out this activity.
• Third-party or 3PL
Management corresponds to a constituted entity, such as integrated management
systems or companies specialized in reverse logistics (RUBIO LACOBA, 2003, p. 90), which are
based on performing out the same activities of collecting, recycling, and reusing materials, but
employing logistics operators outside the company.
According to Optimo Route Article, some third-party logistics enterprises usually provide the
following services:
• Take on the returned product and take it back to the warehouse or other place for
replenishment.
• Simplify and supervise reverse logistics supply chain administration.
• Inspect and repackage returned items.
• Manage stock.
• Processing customer refunds.

13
Reverse logistics companies can deal with all or some portion of the reverse logistics process as
indicated by the requirements of their clients. (OPTIMO ROUTE, 2020)

2.3.3 Reverse Logistics and its Impact on the Environment

As mentioned by Andrew Kulwiec, the main defense against environmental hazards is
reverse logistics. The problem of climate change is an issue that has been active in our society
for years and that, recently, it has grown enormously, affecting various species, organisms, and
ecosystems, and threatening their total extinction in many cases. Reverse logistics gives a
harmless to the ecosystem strategy for recuperating and reusing parts and materials after an
item's life cycle has finished. In several cases, it can likewise add "green" to the main concern.
(KULWIEC, 2006).
Although the company’s main goal is to sell products that meet customer needs, a good
return policy can be the key to loyalty to the brand from our customers. Besides, the ideal would
be to send, within the same package, the labels already printed in case a return is needed, and
the return option within the invoice itself, as does the well-known firm Mango, minimizing the work
to the client.
It is interesting to have a packaging that allows the return of the product in the same box
if it is necessary, as offered by the logistics blog "Rakapack.es" that guarantees the return of the
product in perfect conditions without it suffering any damage during the journey from the
customer's home to the returns warehouse. With this, we will minimize the use of packaging,
generating more sustainable reverse logistics (RAJAPACK, s.f.).
It is mentioned that, for decades, "the concern has arisen in companies to recover and
reuse the surpluses of their production processes". For this, reverse distribution channels must
be developed, which help the correct recycling of all the materials necessary to create a product,
having these to be recycled one by one, thus contributing to the environment, and creating
sustainable production and recycling.
Many companies such as, Cainiao, which is Alibaba´s logistics unit, are already taking
lead among logistic companies to approach green initiatives. For example, in an important event
in November 2020 called "single´s day" they attempted to reduce their footprint by shipping
biodegradable packages, almost half of the paper packaging is tapeless, they implemented the
use of boxes of proper size with smart-packaging algorithms, they have recycling stations across
China, and e-tickets instead of paper receipts. This last project helps Alibaba to lessen paper use
by two million sheets. This is approximately comparable to two hundred trees. (CHOU, 2020).
If companies show more concern about recycling of the products, they could project a
positive image towards the market since they generate commitment and responsibility with the
environment and society. Economically, it can also be beneficial, since it minimizes production
costs by being able to take advantage of obsolete or damaged parts of goods to manufacture
14
them again, although at a lower price, or others. This is known as waste logistics.
In the case of electronic commerce, it could be qualified as returns logistics, since it is
usually linked to fashion or accessories of retail products. With this, it is possible to reduce the
impact of pollution and the number of wastes, introducing these back into the production chain
and subsequent consumption. A good example of this is refurbished products, usually electronic
products such as mobile phones or computers. Some companies are dedicated to buy damaged
or defective electronic products, or that are simply second hand, repair them and put them back
on sale at a price well below the market price (INFORMACION LOGISTICA ( LOGISTIC
INFORMATION), 2019).

2.3.4 Benefits of Reverse Logistics in a Company

As we mentioned, when a company controls the materials with which its products are
made, it can also control how its parts are recycled. Unfortunately, few companies have reverse
logistics.
As stated by Tom K and Martin Verwijmeren, some of the benefits of using reverse
logistics are the following:
• Increase customer service and fidelity.
• Increase public awareness.
• Decrease the security risks of the enterprise.
• Speed Cycle Times
• Grow Customer Revenue & Profit
• Cut External Costs
• Reduce Supply Chain Inventory
• Increase Operational Performance (K, 2016; VERWIJMEREN,2017).

The benefits of reverse Logistics are many; however, until the companies can see its
benefits, they will not be able to take advantage of this area of logistics.

2.4 Logistics in E-commerce

2.4.1 Introduction to E-commerce

We will refer to e-commerce, as an evolutionary process of commerce that has been

15
increasing over the years, directly related to the Internet. According to a blog of actual e-
commerce "It is a term used to define any business or commercial transaction, which involves
the transfer of information over the Internet" (URBANO MATEOS, n.d.).
Electronic commerce includes the sale of physical goods through private B2C user
channels. Here we will find all the sales of goods and services made electronically (laptops,
tablets, mobile devices).
We cannot confuse services provided through the Internet, such as program downloads,
with e-commerce since it is B2B (Business to Business) distribution. This is known as "e-
services".Nor can we include within e-commerce all digital markets whose main activity is based
on the sale of used or reconditioned products in the case of electronic devices (known as
“ReCommerce”) or C2C (Customer to Customer).

(ZEUS, 2017) Described that these are the sectors reached by e-commerce:
• Sales of physical goods B2C
• M-Commerce, based on purchases through electronic devices such as mobile
phones, computers.

Sectors outside the scope of e-commerce:

• Digital downloads (Eg: ebooks, movies ...)
• B2B services
• Sales of used (second-hand) or reconditioned products (Eg, mobile phones)
• Distribution of services (Eg: concert tickets)
• C2C Sales (Eg: eBay)

According to Business Insider, "Ecommerce has been a bright spot among retail channels
during the coronavirus, as consumers became reliant on digital transactions amid physical store
closures and fear of infection. Nonetheless, the impact on ecommerce retail spending has not
been felt even across the world. Asia-Pacific and North America have led the regional totals for
both brick-and-mortar and ecommerce sales, followed by Western Europe. Due in part to China's
dominance, Asia-Pacific has gained a significant lead in ecommerce with 62.6% share, over North
America and Western Europe, who are expected to have shares of 19.1% and 12.7%,
respectively” (SAMET, 2020).
Any person born between the years 1981 and 1996 can be defined as Generation Z or
Millennials. This generation knows about the ecological effect of the items they consume. It is one
explanation that they do 60% of their shopping is on the web, and they are leasing rather than
buying. (ELIAV, 2020).

16
 2.4.2 Advantages of E-commerce
We can find several obvious advantages of e-commerce such as buying online is much
faster and allows us to have many more options and prices than in a normal store. Also, in a
matter of minutes, we can choose the best option and the best price.
For these reasons, online consumers take advantage of certain dates such as "Black
Friday”, “Single´s day” or “Cyber Monday", to be able to access better offers with lower prices,
especially on electronics or household appliances, which are usually the most demanded by
shoppers on these cyber sales.
As explained by (CARDELLO, 2019; WEBFX, s.f.) from a company perspective, e-
commerce can have several advantages for businesses, such as:
• Low cost.
• Flexibility and Speed.
• Ecommerce customers are not limited by geography, they can reach more
customers.
• Online stores are always open.
• It is simple to promote featured products on e-commerce.
• Ecommerce allows for a customized user experience.
• Purchasing is instantaneous.
• Repositioning and remarketing can boost sales.
• Internet business is an extraordinary method to collect client data.
• Ecommerce tracks a client's excursion.
• Internet business can deal with high-volume sales.
• Ecommerce attracts customers through content (CARDELLO, 2019; WEBFX, s.f.).

2.4.3 Relationship between Logistics and E-commerce

The value of logistics in e-commerce is getting more in the attention of businesses and
consumers. At the beginning of this research, we have analyzed logistics and ecommerce each
separately, now we will analyze the relationship between them and their importance. Without
logistics, there will not be e-commerce.
Unlike in a physical business with brick-and-mortar locations, the e-commerce business
pays more attention to paid marketing, web aesthetics, or SEO, which stands for "Search Engine
Optimization". Very often, online shoppers when they decide to buy an item online, they pay more
attention to the aesthetics of the web, advertising, or the images of its social networks.
Unfortunately, the logistics are not being considered such as the customer service or the speed
of their shipments, or the conditions for the return of products. Logistics are not only for big
electronic companies, but ecommerce also gives power to any size of electronic business.

17
 Ecommerce cannot coexist without logistics. Logistics is the core if e-commerce wants to
operate. If e-commerce logistics does not work, then the organization will not be financially savvy,
and the customers will not be fulfilled.
According to Gazi Hasan, a Supply Chain analyst at P&G says that maintaining good
logistics will ensure that you deliver on time and control returns or changes. (SANAUL HASAN,
2018).
The expansion of e-commerce has a significant impact on the logistics system, such as
the material flow, efficiency, economic benefits, impact on companies and customers. Based on
modern information technology and computer networks, e-commerce is the foundation of
services. It has many qualities of transparency, low cost, and high efficiency. If the development
of logistics is poor, then e-commerce´s efficiency and quality would be low, and there will not be
an e-commerce economy. Improving the logistics system is the way to determine the subsistence
and development of e-commerce.
Most of the failure of e-commerce companies is due to the malfunction of logistics.
Amazon's success is also attributed to its success in logistics. Although Amazon is an e-
commerce company, its logistics system is complete, and it is not lower to the brick-and-mortar
businesses. We should improve logistics system to control logistics costs and to get effective
logistics processes. (SLYWOTZKY, CHRISTENSEN, TEDLOW, & CARR., 2000).

Analyzing the relation between ecommerce and logistics, Gazi Hasan, a Supply Chain
analyst at P&G mention three aspects that we need to examine:
• Logistics information system. We must provide logistics technology that can adapt to the
company's rhythm, and these technologies can connect online work with real stores.
• Warehousing. From order preparation, packaging, labeling services, etc., we must
consider these aspects.
• Distributing. Once the product is ready, we must deliver it. This is probably the main point
because it is essential to fulfill established times. (SANAUL HASAN, 2018).

2.5 Research Gap and Derived Research Questions

2.5.1 Research Gaps Identified

Identifying the research gap is vital for a research paper. According to North Central
University online library, research gaps, are the lacking parts in the research literature, gaps are
the fields that have not yet been investigated. Usually, the research gap has not been yet clarified
by other researchers. Identifying research gaps is a great way to create potential research
questions or future research papers. (North Central University, 2021) These are the following

18
findings and gaps we have found in the literature review of our research paper:

Findings 1: Evidence from the past researchers show that there are insufficient studies of the
impact of the COVID-19 pandemic in Reverse Logistics and e-commerce.
Gap 1: Therefore, the purpose of the present study is to identify the impact of the COVID-19
pandemic in Reverse Logistics by attempting to find current data of the impact of this pandemic
in these two areas.

Findings 2: Evidence from the past researchers show that there are not enough studies of the
impact of the COVID-19 pandemic in Returned items bought from e-commerce platforms.
Gap 2: Therefore, the aim of the present study is to examine the impact of the COVID-19
pandemic in the returned items that have been purchased online. We attempt to this data by
studying the case of the company Amazon, which is a leading company of the two sectors.

Findings 3: In addition, studies have ignored the significance of the relationship between Reverse
Logistics in Returned items and e-commerce during the COVID-19 pandemic. This has not been
yet clarified and there is limited evidence from this important relationship.
Gap 3: Therefore, in this study, we will address the significance of the relationship between
reverse logistics in returned items and electronic businesses during the COVID-19 pandemic. We
will achieve this through the study of the Amazon case to confirm the importance of the
relationship between the aspects previously mentioned.

2.5.2 Derived Research Questions

According to the library of Sacred Heart University, research questions are statements
about areas of discussion, conditions that should be improved, challenges to be removed, and
show that deep understanding and research are required. The research question does not specify
how to do something, and it provides a simple proposition. (SACRED HEART UNIVERSITY,
2008).

These are the following research questions we have developed:

• Is the Reverse logistics being impacted by the COVID-19 crisis? If it is, then what
it is importance to conduct this research.
• Is the E-commerce being affected by the COVID-19 crisis? If it is, then what it is
importance of conducting this research.
• What is the impact of COVID-19 in Reverse Logistics, focusing in returned items?
19
 • What is the impact of COVID-19 in ecommerce, especially in returned items?
• Why is the relationship between reverse logistics and e-commerce in returns so
important?
• How will this research contribute to business development?

Since the business environment is very dynamic, we aim to contribute to the knowledge
of the importance of an efficient work between Reverse logistics in returned items and electronic
businesses by filling the previous gaps mentioned. So, in the future, businesses could develop
better sustainable systems.

Chapter 3: Case Study

3.1 Amazon: Company Background

The following data about Amazon company have been taken from the official websites of
the company. By having more knowledge of Amazon company, we will have the ability to deliver
a better analysis of the case study. (AMAZON, 2020)
Amazon is considering a B2C (business to consumer) enterprise. It sells products and
services directly to customers, mostly under an internet platform. Jeff Bezos founded Amazon
in1994 and it is in Seattle, WA, USA. The company began as an online bookstore. Amazon is
listed on NASDAQ, it was originally an online bookstore, and has since diversified into the United
States' largest retailer of various products based on the Internet. In 2019, it reported $280.52
billion in revenue. As of June 30, 2020, its market value was $1.38 trillion.
Amazon markets include the United States, Canada, Mexico, Brazil, United Kingdom,
Germany, Spain, Italy, France, Netherlands, Japan, Australia, Singapore, Sweden, Netherlands,
Saudi Arabia, India, and UAE.
Amazon offers online retail shopping services. It serves four main customer groups:
consumers, sellers, businesses, and content creators.
According to the Amazon website, their mission is to be the most customer-centric
company on the planet. Amazon pursues the following four principles: customer-centric rather
than focus on competitors, passion for innovation, devotion to operational excellence, and
continuing thinking.
A portion of the items and services led by Amazon are client reviews, a single click
shopping, customized suggestions, Prime, Amazon Fulfillment, AWS, Kindle Direct Publishing,
Kindle, Fire tablets, Fire TV, Amazon Echo and Alexa.
Amazon's outstanding logistics solution is called "Fulfillment by Amazon (FBA)", which
20
can help package and ship products to Amazon's international customers from more than 200
countries in just two days.
In addition to e-commerce, Amazon strives to become the most efficient logistics and
distribution company in history. From the beginning, this is the key to the success of the company.
Therefore, Amazon focuses on two mainstays to continue developing. These pillars are
Employee-centered logistics and Customer-centered distribution.
Amazon manages more than 175 advanced fulfillment centers worldwide. This means that
Amazon has extensive logistics and distribution capabilities, which allow the company to deliver
items almost immediately when orders are placed. (BEETRACK, 2020)
The management of logistics and distribution by Amazon is, without a doubt, the main
reference that all logistics companies in the world should have.
At the point when stock enters the stockroom, it is arbitrarily allocated and put in 2-meter-
high stockpiling cases conveyed by versatile robot drive units. While it might appear to be bizarre
to sort stock haphazardly rather than having everything in a devoted rack, Amazon has discovered
that this methodology makes picking requests and finding things far less difficult. Utilizing Amazon
Web Service's information capabilities, pickers can rapidly discover the product nearest to them,
minimizing the time spent moving between indicated classification areas. (CONSUMER
RETURNS, 2021).
While, before employees used hand scanners to be able to track items moving in a
warehouse, Amazon now has a new optical tracking technology which eliminates any need for
hand scanners. The camera technology can automatically scan the containers while the
employees move around. (CONSUMER RETURNS, 2021)
Before the COVID-19 crisis, Amazon estimated to have a net revenue of $81.2 billion in
the second quarter of 2020. Due to the pandemic, their income eventually reached 88.9 billion
US dollars. Which means, a 40% year-over-year growth. The revenues of the second quarter of
2019 were $63.4 billion. (AMAZON, 2020)
For grocery stores, the year-on-year growth rate is particularly impressive. After Amazon
increased the grocery store capacity by 160% during the pandemic, its year-on-year growth tripled
(AMAZON, 2020).

3.2 Impact of COVID-19 Pandemic on Amazon

The impact that COVID-19 has had in the global economy has permeated not only among
logistics companies but also e-commerce, since it must face the challenges that this pandemic
has brought within it.
Amazon and other online sales sites have been impacted by an oversupply of products
related to the prevention of the coronavirus, such as face masks or antibacterial gel, up to a crisis
from the sellers supply because in some cases they would face the lack of products.
21
 The coronavirus does not make distinctions and is affecting the entire society. It does not
matter individuals in their homes or large companies; nobody is released from its effects. If there
are companies that can serve as a "thermometer" to measure the situation, Amazon could be one
of them.
Some of the effects and actions that we have been able to observe on Amazon company
after the arrival of this pandemic will be mentioned in a general way below.

• In 2020, despite the exceptional pressure on brands to perform due to the

coronavirus pandemic, consumers have suffered severe delays in delivery time, a
rise in stocks, and store closures. In response to growing demand, Amazon has
conducted large-scale recruitment in 2020. The supply chain trouble may continue
into 2021. Altogether, consumers will remain to expect the fast free shipping
(DAVIS, Top 9 Ecommerce Trends to Expect in 2021, 2021).
• Nevertheless, Amazon's sales in 2020 increased by 39.1% year-on-year (DAVIS
& TONEY, 2021).
• Although company had predicted that it could lose money in the second quarter of
2020, when the impact of COVID-19 on its business was going to be seen, its profit
has doubled, going from 2,625 million dollars to 5,243 million, the highest quarterly
profit in the 26-year history of the company (JIMENEZ, 2020).
• Amazon added $4 billion in extra spending to ensure the safety of customers and
employees, and boosted deliveries after focusing on only essential items.
• On April 2020 Amazon began building a strong COVID-19 test network to test its
employees for the coronavirus. The laboratory is in Kentucky and has handled
more than one million COVID-19 tests for front-line employees from more than 700
testing sites, making it the frontrunner in employer-led COVID-19 testing. Amazon
last year set up a laboratory in response to this pandemic to help frontline
employees ensure their health and safety (AMAZON STAFF, 2021).
• Amazon is also committed to manufacturing face masks for workers, automatic
robots that disinfect with ultraviolet rays, and devices that reduce contact between
humans.
• Amazon has performed more than 150 process updates in its facilities, from
improved cleaning to social distancing measures.
• In the beginning of the pandemic in March 2020, Amazon prioritized the provision
of essential products, such as household items, infant formula, and medical
supplies, so that people can safely obtain the products they needed the most.
(AMAZON, 2020)
• COVID-19 speeded up numerous patterns and trends, including brands looking
more toward third-party sellers. Amazon is clearly arising as a prevailing power in
22
 this field, set to top $52 billion in gross product volume by 2023 (DAVIS & TONEY,
2021).
• Amazon makes a Prime day every year, but due to COVID-19 pandemic the
Amazon Prime day was delayed from July to October 2020, and it was
exceptionally effective. Digital Commerce 360 evaluates that, despite the
pandemic crisis, Amazon Prime Day 2020 transactions reached $10.4 billion, up
from $7.16 billion (+45.2%) over Prime Day of 2019 and from $4.19 billion
(+148.2%) over Prime Day of 2018 (DAVIS, 2020).
• Amazon increased on grocery sales, which tripled Amazon Year Over Year growth
rate, they decided to increase grocery capacity by 160% during the COVID-19
pandemic.
• Coronavirus exposed gaps on Amazon, such as its regulation of the marketplace.
Amazon suspended more than 3,900 venders for disregarding the Amazon
Marketplace Fair Pricing Policy that rejects deals that hurt shopper trust (DAVIS &
TONEY, 2021).
• Amazon donated cash, meals, gift cards, medical supplies, and computer
equipment to nonprofits community foundations, nonprofit relief organizations,
schools, and healthcare professionals (AMAZON, 2020).
• Between March 5 and March 31, 2020, visits on Amazon.com expanded 9.4%. In
Italy, one of the nations most impacted by the COVID-19 pandemic, purchases
expanded by 9% in the first week and 21% the second week of March (HOFFMAN,
n.d.).
• Amazon is already one of the largest private employers in the world, and even
before they were hiring 100,000 workers in March, they announced that they would
hire 75,000 more workers in April 2020.
• Amazon has implemented some measurements, such as using thermal imaging
cameras, providing protecting equipment and promoting social distancing between
employees in warehouses, allowing office staff to work from home, and ensuring
that all employees diagnosed with COVID-19 or quarantined are eligible to receive
up to two of paid vacation weeks in the U.S. (HOFFMAN, n.d.).
• When the COVID-19 cases increased in Amazon warehouses, Amazon
employees abandoned the warehouses in Queens, Chicago, and Detroit. Workers
from Detroit complained about the continuous shipment of non-essential products
that increase the workload and decrease the possibility of applying social
distancing.
• Supermarket employees at Amazon's Whole Foods Market have also been
participating in work strikes. Amazon is reported to have fired at least six
employees who expressed opposition to company policies during the pandemic,
23
 in United Stated and other employees reported that they faced disciplinary action
by Amazon after complaining (HOFFMAN, n.d.).
• Amazon echo dots, Alexa devices can help customers stay in touch and
understand their COVID-19 risk concentration.
• Amazon is collaborating with 3M to consider malicious individuals responsible. For
many years, Amazon has adopted a policy to stop counterfeiting and price
increases and has developed procedures to actively block suspicious products and
false prices. If Amazon finds that someone or a company violates the policy, it will
immediately recall the product and act against the individual or company. Amazon
supports 3M's investigation of fraudulent N95 masks and welcomes cooperation
from other brands.

In the 2020 pandemic, there was a period when Amazon seemed to be facing conflict in
all aspects. The issues within the guidelines of their commercial center had been uncovered, their
stock was unpredictable, and since they had numerous sales that they had to recruit 100,000 new
employees. To form matters more troublesome, they ought to handle these difficulties while
guaranteeing that they do not increase to the spread of the infection. This has been one of the
most challenging periods for Amazon.

It is worth mentioning that Amazon despite having a strong impact on this pandemic, they
have known how to take the best of it and make the most out of it.

3.2 Amazon Reverse Logistics Strategy: Returned Items

Nowadays, most e-commerce businesses have a reverse logistics service for the return
of products as a fundamental part of their supply chain. Some offer the service free of charge to
the customer, others add a return charge, others have a returns center and others delegate the
responsibility of the return to the customer, although in the final case the company continues
executing the return-processing functions in the information systems.
As we mentioned previously, Amazon is a company known for providing excellent after-
sales return service. Its reverse logistics process allows customers to return products within 30
days of receiving them, if their return policies are followed, which vary depending on the products
to be returned and the reasons why they want to return.
Amazon has been working hard to reduce shipping costs. Amazon's innovative way of
reducing costs through reverse logistics is worth analyzing.
These are some actions Amazon is taking as a planned Reverse Logistic system:

24
• Reducing packaging waste. According to Amazon, they have been working on
wasted reduction since 2008. Their Frustration-Free Packaging program has
saved over 810,000 tons of packaging materials and removed the usage of 1.4
billion shipping boxes (AMAZON, 2020). Then since 2015, Amazon has decreased
the load of packaging by 33% and reducing over 1 million tons of packaging
material, equivalent of two billion shipping boxes.
• Amazon has the option of returning the item without a box, you only must deliver
this product to one of its locations, such as: Amazon Hub Lockers, Whole Foods,
UPS Stores, Amazon Books and Amazon Four-Star Shops.
• Amazon is employing a return option of no labeling, no box return, the customers
do not have to pack the goods in a box if they drop it in a return location. The
customer completes the return process and then receives a QR code. The
customer takes the item and the digital QR code to a drop off location (AMAZON,
n.d.).The QR code implemented in the returned goods is to make customers
happy, who confirm that the packaging box and printed labels are an inconvenient
part of returning online orders. Also, with QR code returns, Amazon does not have
to pay for printing a return label for each order. Thereby, reducing the number of
individual boxes to be unpacked in the warehouse and allowing the returned goods
to be packed more effectively on the truck on (HALZACK, 2020).
• Amazon invested 10 million US dollars in a "closed loop fund" to ensure that
materials return to the manufacturing supply chain. Amazon expects to increase
the availability of recycling for 3 million households in the United States for the next
10 years (AMAZON, 2020).
• Now, Amazon in the US is persuading shoppers to return unneeded goods to local
physical stores, and Amazon cooperates with the store to support this reverse
logistics supply chain. One of these partnerships, is Kohl’s retail store, which
accepts a variety of products returned by Amazon. Market research also shows
that after the partnership with Amazon the sales of these stores increased.
(RETAILING MANAGEMENT, 2020).
• Digital focused on the return process. Some online stores like Amazon have
switched to systems where customers must first go online and answer questions
about why they want to return the goods. This provides them with much useful
data, such as warning them that a certain style of clothes or that a product does
not meet quality requirements. However, these questionnaires can also help them
improve return efficiency (HALZACK, 2020).
• Amazon created a program called "Achieved by Amazon Donation ". This program
allows customers to donate an undesirable inventory to selected US charity. When
customers request that qualified backlogs, returns, or other unneeded FBA
25
 inventory be disposed of at a fulfillment center in the United States, Amazon will
provide them to selected U.S. charities (AMAZON, n.d.).
• Amazon is beginning to care about the environment. Amazon is committing to
create a sustainable business for its customers and the world. In 2019, Amazon
co-founded The Climate Pledge with other companies, Amazon committed to
achieve zero carbon emissions by 2040 (AMAZON, n.d.).
• Amazon is already working with a 3PL company named goTRG. This company is
specialized on reverse logistics. They help Amazon to recover lost profits from
returns and managing inventory. (goTRG, 2021)

3.4 Impact of COVID-19 Pandemic on Amazon´s Reverse Logistics: Returned

Items
The e-commerce has suffered a great impact after the arrival of the coronavirus on its
logistics system and the reverse logistics is not the exception. Despite the large size and capacity
of Amazon, this company suffered some effects from the COVID-19 pandemic on its reverse
logistics arm.
• As we mentioned section 4.2, at the start of the pandemic in March 2020, Amazon
shut down the shipping services for nonessential items that are handed over by
third-party sellers to prioritize products that help minimize disease control. Third-
party sellers could sell non-essential items on Amazon, but they cannot use
Amazon Fulfillment or FBA to ship these items.
• Due to the pandemic, Amazon temporarily extended its return policy. The company
declared in April 2020 that Amazon has temporarily extended its return space due
to the COVID-19 pandemic. In the United States and Canada, most of the items
that were purchased on Amazon between March 1 st and April 30th, were able to be
returned until May 31st, 2020 (PETERS, 2020).
• In the middle of April 2020 Amazon started allowing third-party sellers to ship some
nonessential items to its warehouses. Fast delivery is an important part of the
competitive advantage of Amazon, and shortening these times is critical to
retaining customers. In April 2020, Amazon received 800,000 negative
evaluations, this is twice the number of April 2019. Many shoppers turn to rivals
such as Wal-mart and Target for curbside pickup.
• In France, a court ruling in April required Amazon to cooperate with labor unions
to assess and develop measures to address health and safety risks. Amazon was
urged to restrict the sale of non-essential goods. Because of this ruling, Amazon
announced that it will temporarily suspend all work in France. After several weeks
of closure, the company finally agreed with the labor unions, but the company’s
unilateral shutdown affected not only workers and customers, but also sellers on
26
 the marketplace platform (HOFFMAN, n.d.).
• Amazon deliveries arrive at homes later than usual and some products are out of
stock and out of stock both due to increased requests and the stoppage of activity
by some companies. From Amazon Spain they admit that as the days of
confinement have been extended, online purchases have increased. (ABC, 2020)
• The deliverers of Amazon are following the government recommendations to
reduce contact with customers, and some of them choose to leave packages at
their doorstep. Consumers can also set shipping preferences on the "Checkout"
screen and click "Add Delivery Instructions" while selecting a safe place to drop off
the package.
• On the other hand, Amazon has suspended temporarily home delivery of heavy
packages that require two people to transport them. Neither will installation
services be performed, for example, of electrical appliances, to prevent entry into
the client's home and prevent contagion.
• What amazon said about unjustified price increased on essentials products during
this COVID-19 emergency. “We are disappointed that unscrupulous people are
trying to artificially increase the price of essential items to address the current
health crisis that we have on the planet " said the company (BBC MUNDO (BBC
WORLD), 2020).
• Return Frauds increased. Due to COVID-19, Amazon completed more FMB orders
in April 2020 and was unable to ship products to FBA, so the number of buyers
return frauds has greatly increased. Many customers are opening return request
with defective return items to return orders and when the seller receives them back
these customers are returning different items, old items, and even missing some
high value items (AMAZON SELLER FORUMS, 2020). Amazon has poor after-
sales services, not even a phone number that you can call on and neither do they
have a good seller protection policy Amazon only allows abusive reviews and
massages to be reported. For FBA orders, Amazon return experts may exacerbate
concerns about fraud. Customer service representatives or fraud detection teams
can also have to deal with abuse.
• Wall Street predicts that due to increased demand during the pandemic, sales
growth will accelerate from last year. But this growth is expected to be at the
expense of profits because Amazon must increase operating expenses and focus
on lower-margin products, such as home products. (KIM, 2020)
• The company has increased its revenues by 26% between January and March, to
75,450 million dollars (68,877 million euros), although its profit fell by 29%, to 2,500
million dollars (2,282 million euros). The fact that Amazon made less money,
despite the large increase in turnover due to the confinement of much of the world
27
 due to the pandemic is because Amazon operating costs have increased
significantly, especially the cost related to sales, storing, technology, and
marketing (JIMENEZ & S. SANCHEZ DE ROJAS, 2020).
• The company has faced several supply chain disruptions as sales of household
goods and medical supplies significantly exceeded expectations. However,
according to data compiled by Learnbonds, Amazon had more than 4 billion unique
visitors in March, more than web traffic on eBay, Apple, Walmart, Rakuten and
Samsung combined. (KIM, 2020).
• Since 2017 Amazon has a policy of Returnless Refunds, where the customer does
not need to return the product and they still get their money refunded. This policy
works for products that are not worth being returned because the value of the
product is less than the returning cost. This type of Amazon return policy has
started to be more popular during the pandemic of the Covid-19 (KAPNER &
ZIOBRO, 2021)

Some of these innovations would have been necessary even without the rush and
pressure of the pandemic concerning online buying, but now the innovations seem even more
crucial. Immediately upgrading these processes is a profitable investment for Amazon.

3.4 Summary of the Case Study

After writing the research and analyzing the information from Amazon, we have learned
about its logistics and returning items system. We have read about the impact Amazon has been
going through during this COVID-19 pandemic, so we can reach the following points:
Amazon is one of the largest online shopping platforms and a well-known cloud service
provider in the world. We must admit that the management of logistics and distribution by Amazon
is, without a doubt, the main reference that all logistics companies in the world should have.
Amazon had a growth in sales and even though the company predicted a decrease in
profit on the second quarter of 2020, they doubled the profit, and it was the highest in 26 years.
Even though, Amazon must be careful with these rates because even when the numbers are very
positive and encouraging, Amazon increased its sales in products with less margin, such as
household items. Amazon should have a perfect reverse logistics, so the profit of this “less-
margin” products does not affect the growth of the business.
During COVID-19 Amazon was also impacted by its labor force. They had to change the
plan and spent more than 4 billion dollars to ensure the safety of its employees. Also, they had to
hire 10,000 workers more in 2020, which was also out of the plan.
Amazon faced many issues with its employees, there were many strikes and suspension

28
of activities in some of their high-level fulfillment centers.
Amazon has a very important sales day every year, which is called “Amazon´s Prime Day,”
in 2020 this day was postponed to October 2020. Even with COVID-19 effects on the economy,
this was a very successful event.
Also, Amazon started a program of donations to help the world during COVID-19.
About Reverse Logistics, we can conclude that, as we mentioned, Amazon is a company
well-known for providing after-sales return service. Its reverse logistics process allows customers
to return products within 30 days of receiving them, if their return policies are followed, which vary
depending on the products to be returned and the reasons why they want to return. Amazon has
been working hard to reduce shipping costs, and they are concerned about packing waste. They
are always implementing new ideas such as, returnless refunds, label free, application of QR
code, box free, recycling and charity through FBA donation.
Amazon also shows its concern about the environment by having its climate pledge. We
believe that Amazon should continue taking care of the environment by using the Reverse
Logistics. Although, Amazon has implemented good innovations to help the environment, it needs
to continue to improve, since they are a big part of the waste being produced in the world.
Companies like Alibaba for instance, in “single´s day” of the year 2020, they reduced their footprint
by shipping biodegradable packages almost of its paper packaging was tape-free, they
implemented the use of boxes of the proper size with smart-packaging algorithms, the have
recycling stations across China, and e-tickets instead of paper receipts. (CHOU, 2020).
As we said, the e-commerce industry has been suffering a huge impact on COVID-19
pandemic on its logistics system, and the reverse logistics is not the exception. Despite the large
size and capacity of Amazon, this company suffered some effects from the COVID-19 pandemic
on its reverse logistics arm, as we can mention some of the most important ones:
At the beginning of the pandemic Amazon had to focus on delivering only Essential
products, which enabled non-essential products not to use FBA system. This decision affected
the delivery times on items and many products were out of stock. This made Amazon
had negative customer feedback and some customers turned to competitors.
Furthermore, problems with union workers in high-level fulfillment centers made even
more difficult to deliver items on time. For example, warehouse in France shut down completely
for some days due to a strike.
In addition, Amazon had to create new ways of delivering items where they had to reduce
the contact with customers. Also, to protect its deliverers, they suspended the delivery of heavy
items. This last order protection made by Amazon is not only affecting the shoppers, but also the
sellers, that are not selling through Amazon as they expected and most of them have their
inventory stocked in amazon warehouses.
We can mention that one of the most important impacts for Amazon returns is the increase
on returned frauds. Many shoppers are scamming the sellers and they are not returning the item
29
as they should, or even returning trash instead of the original product. We have found that there
is not official seller protection policy and there is no way for the sellers to be protected from this
type of frauds that are increasing during the COVID-19 times.
Even though fraud and problems can arise during the increase of the sales. After reading
the importance of returning items, we can confirm that Amazon must keep in mind how to make
the returning experience easy and fast for the customer, so the customer does not feel frustrated.
This is the best way to have the customer happy and loyal. Amazon is a customer-centric
company, where they say that customer is its obsession, but they should also remember that the
seller is also its customer. We say that the seller is also a customer because Amazon is receiving
a big percentage from the items sold by the sellers. Amazon needs to be careful with their seller’s
protection since they are the most affected when there is a returned item.
Since the pandemic started Amazon has been facing challenges from everywhere.
The violations of market regulation have been shown, its inventory is unstable, and orders
have surged so high that they had to hire 100,000 employees. To alleviate the difficulty of the
problem, they must address these issues while ensuring the health of the employees and
customers. This is one of the Amazon's most challenging times.
Nevertheless, it is worth mentioning that Amazon despite having a strong impact on this
pandemic, they have known how to take the best of it and make the most out it.

Chapter 4: The Impact of COVID-19 Pandemic on

Reverse Logistics and E-commerce

4.1 Impact of Covid on Reverse Logistics and E-commerce

As we already know, SARS-COV-2 is a virus that has been present in our society since
the end of 2019, and it affects the whole world and, therefore, the world economy.
Logistics and transport have been extremely affected by this disease, especially maritime
transport from Asia, specifically China, one of the largest production engines, creating an alert
around the global supply chain.
COVID-19 disease has had a serious impact on logistics worldwide, as well as a huge
challenge to face and that it will be difficult to return to the same level as a few months ago. This
"phantom threat" posed by the virus has gone from being something exceptional, to become in
just a few weeks, a new normality in which the entire world has been involved, regardless of the
sectors.
The COVID-19 crisis has enabled e-commerce companies to achieve significant growth,

30
which in turn has led to more attention to reverse logistics. All of this forced the company to
reorganize its logistics chain to meet unexpected growth in demand.
Ecommerce growth will not surge this year as much as it did in 2020 since the degree of
growth was so high last year, but worldwide ecommerce sales are still approaching the $5 trillion
mark. Ecommerce retail sales are projected to grow 14.3% this year. (DAVIS & TONEY, 2021)
Staying at home directions in some countries, and low in-store shopping rates in others,
led many retailers to close brick-and-mortar locations. Consumers started shopping online, and
three-quarters of them made impulse purchases. Consequently, the increase in online shopping
brought an increase in returns. (ELIAV, 2020)
The e-commerce spiked during the dark days of lockdown with physical stores closed and
consumers with time on their hands to surf the Internet. This drastic change in consumer shopping
habits emphasizes the importance of omnichannel strategies and a resilient supply chain.
(DEANGELIS, 2020)
As we said, consumer pandemic behaviors have changed during COVID-19 crisis and it
will continue in 2021 year. According to ROI Revolution, in 2020, online sales increased 27.6
percent. In total, global sales fell 3.0 percent. We must not forget that this year 2021, even if the
pandemic decreases in intensity, electronic commerce will continue to be crucial for businesses
that sell online. (DAVIS & TONEY, 2021)
To have a better understanding of the impact of this crisis on logistics and ecommerce,
we will show some statistics on reverse logistics before COVID-19, which were presented on the
Locus Report from Locus logistics company:

• According to a national retail federations study of 2018, average consumers

returned an around a 10 percent of overall purchased items.
• In 2015 IHL, a market research company found that consumers all over the world
return an astonishing $642.6 billion in goods each year. Also, American consumers
are the largest contributor to global returns, with an annual cost of 221.7 billion US
dollars.
• US retailers lost $351 billion in sales due to product returns. 2018 Retail Consumer
Reporting Survey.
• 70% of shoppers will purchase additional items after returning to the store. When
processing returns on the website, 45% of shoppers purchased additional items. -
UPS Pulse for online shopping in 2016
Due to the growth of online sales and the returns during the COVID-19 period, companies
began using more return policies to differentiate themselves from competitors. High-quality and
innovative return strategies will become a fundamental part of the supply chain.
Contactless returns will have a higher growth after COVID-19, a trend that will be marked
in the long term. Social distancing has become the new normal. Currently, product deliveries in
31
many places are already without human contact, returns will also need to be contactless.
According to Shamiss, co-founder and CEO of GOTRG, which is a global technology
company, tells us that consumers are noticing problems in the returns process because more
than 25% of them confirmed that the returns process has worsened since the start of the
pandemic. Consumers want to avoid being overwhelmed and prefer to have the option to
purchase online with store pickup (BOPIS) and store return (BORIS). It is worth mentioning that
the biggest attraction to buying online is still free shipping. (DRENIK, 2020)

Figure 3. Illustration: Prosper-Holiday Online Shopping Trends

Source: Forbes (DRENIK, 2020)

Reverse logistics has many challenges, but some of them are depreciation of the value of
the product and great sensitivity to time.
Repurchase pressure during special sales periods such as Christmas, Black Friday and
Cyber Monday will also increase these issues. Therefore, companies with a streamlined supply
chain network should consider a good solution, which is to outsource the return management of
3PL companies to them.
This COVID-19 pandemic has put pressure on courier companies to strike a balance
between efficiency, security, and customer experience. (NARASHIMMAN)

32
 Figure 4. Illustration of Cost of returning deliveries in the US year 2017 and 2020.
Source: Locus Logistics (NARASHIMMAN)

Inmar Intelligence, a leading technology and data services company that manages e-
commerce platforms, found that before the COVID-19 pandemic, 78% of buyers preferred to
return the products in person, but this number did not change so much, because during the
pandemic still 60% of shoppers prefer to return online purchases in person, despite the risk of
infection. This is important data for online commerce companies when they are designing or
improving their logistics policies. (E. KOHAN, 2020)

4.2 Business Evolution after this COVID-19 Crisis

The COVID-19 pandemic has rewritten the rules for retail. This pandemic crisis has
brought significant evolution in all sectors. It remains uncertain when things will return to normal,
but what we can know for sure, is that new consumer habits have formed in 2020 and these have
altered the future of business and logistics.
Hitendra Chaturvedi, a professor at the Supply Chain Department of W.P. Carey School
of Business at Arizona State University, says that, “The coronavirus has disrupted U.S.
companies in many ways, and nearly three-fourths of them have seen their supply chain
significantly affected.” (DEANGELIS, 2020)
According to Emarketer article, the COVID-19 pandemic has accelerated the trend that
was observed, where the physical purchase of products in stores has been decreasing. In 2020,
a 32.4% increase in e-commerce sales and a 3.2% drop in physical stores was anticipated. (LIU,
2020)

33
 Figure 5. US Retail Sales Growth 2015-2020
Source: Emarketer (LIU, 2020)

With many people shopping digitally for the first time, and more buying in new categories
such as online grocery, the shift to ecommerce seems to show no signs of slowing down. (LIU,
2020).
Even though this lockdown period occurred in a very forced and sudden way in all around
the world, the population has adapted surprisingly well to this confinement since we spent weeks
in our homes working and doing other activities that we keep active. But these social restrictions
imposed by governments because of COVID-19 will continue with us for a long time. These
changes are not going to be neither for the better nor for the worse in our lives, but they will make
them take a different course, living at a different pace and continuing with certain norms of social
distancing, some of which we will end up normalizing some in our lives, daily life forever.
The worst part of this crisis is being suffered by small companies, which are the ones that
are going to be the most forced to change, not only to fight for survival, but to be able to continue
with the competition from the rest of the companies in their sector. This period will be
characterized as a period of inflection and adaptation between traditional and digital businesses.
This period will be very short and with many ups and downs, so companies will have to adapt
quickly and invest resources in digitizing their businesses for the future.
Despite all these recommendations on digitization, no one can foresee what will be next
or when this may end, but yes, we must prepare for different possible scenarios that may occur
in the future.
Also, the trend towards the digitization of companies may affect the existence of physical
businesses, not dissolving them completely, but reducing them or changing their business form,

34
linked to the business website. The increase in logistics areas by companies will avoid excess or
shortages on stocks, especially in companies that have physical businesses, which will need a
large warehouse to this. Online commerce will increase in the coming years, so all online business
platforms should improve their back office and web presence by applying the latest news in terms
of digital marketing, such as emailing, SEO, payment methods and carry out omnichannel
marketing strategies.
According to a consumer study conducted by Narvar, (NARVAR, 2020) an intelligent
customer experience platform, some consumer trends have surged during the pandemic
situation:
• Shoppers prefer convenience and standardization. It can be seen by the
widespread acceptance of different locations, convenient pickup & returns
solutions, and printer less returns.
• Shoppers are agreeing to pay for certainty; there is a certain tolerance for the cost
of reservations and expedited options, which can help retailers offset operational
cost.
• The size and fit issues can be mitigated easily with better information availability
as its one the reasons for the surge in bracketing.
• There was a huge "loyalty shock": more than half of consumers tried new retailers.
• Due to supply chain disruptions, many companies do this out of necessity, but
many companies do so for emotional reasons, including supporting local
companies or D2C brands. Long-term chances of winning these new customers
are great, and return experience is a key element of customer retention.

In summary, businesses to be able evolve during this pandemic situation should consider
these:
• Businesses should prioritize convenience and predictability: focus on the experience of
the busy and stressed consumer who is trying to maintain social distancing, while ensuring that
the home is running efficiently, and the health of their family is perfect. Businesses should offer
prepaid returns, easy exchanges, and digital features like printer-less QR codes for returns.
Companies should provide alternative delivery locations such as pharmacies or convenience
stores through partnerships with other companies to increase consumer accessibility and facilitate
consolidated product travel.
• Businesses must reinvent the physical store experience to achieve efficiency. As
consumers become more hesitant about their visits to a brick-and-mortar store, it is important to
make transactions more efficient while also making the in-store experience valuable. For simple
transactions like returns or checkout, accelerated omnichannel options should be offered to
minimize contact such as BOPIS, BORIS, curbside pickup and returns, and buy in store, return
online. (NARVAR, 2020)
35
 4.3 Logistics Evolution after this COVID-19 Crisis

Logistics is a sector that has been strongly affected by the COVID-19 pandemic, we
cannot say that this has been a totally negative impact. Rather, it has exerted pressure on this
sector that has forced an important and positive evolution to take place in the area. Logistic
management is introduced to the following changes:
• The advancement of e-commerce. The rise of electronic commerce has been
continuous recently, in 2020, there has been a constant raise in e commerce in the
recent years. With a significant escalation of 30% during the COVID-19 pandemic.
This growth will enforce restructuring of various supply chain sectors, redesigning
storage, and logistical operations.
• The advancement and the development of the online area, buyers will bring require
swift and efficient solutions and abrupt responses from the suppliers. Based on
customers concerns about sustainability and swift logistics the suppliers will have to
implement efficient logistic solutions. Companies should start incorporating better
recycling systems and motivate people to do so, as is the case with Alibaba in China.
This company started in 2020 with recycling centers where buyers take their products
that they want to return and, in this way, consumers obtain rewards and points. These
types of programs are a good example of ideas that other logistics companies should
start to carry perform.
• Digitization of processes. Digital transformation has been the main competitive factor
between organizations during the past years. This tool is the inevitable change in
logistics that will be the driving force to bring us out from the ongoing economic crisis.
Digital transformation will transform human resources working in logistic operations
in the coming feature, whereas today there is still a high need of digital adaptation
around the world.
• Technological changes. IoT, connectivity and 5G is bringing about a forced upgrade
in operational workflow of the logistic sector.
• Transparency. Companies must be much more transparent with the destination of
product returns, so that consumers can make much more conscious decisions when
returning or not the product. This way, instead of returning it, they can sell it, recycle
it at home or donate it.

The current and future challenges that COVID-19 will leave are of great importance in the
operation of the company's logistics management. Fundamentally, we believe that there are five
key points that logistics should pay special attention to:

36
 • Inventory: It will be necessary to maintain a level of inventory appropriate to the
needs that the client is marking us and guarantee it with a continuous improvement
in relations with suppliers and in reducing the level of inventory difference.
• Picking: There will be an increase in the automation of the picking processes or an
analysis work that allows us to parameterize the picking process to improve speed
and offer guarantees in the preparation of the order.
• Last-mile transport: Delivery times will be shorter every day, as customers want
the delivery section to be increasingly adjusted in time and the problems of
deliveries in large cities do not stop increasing because of the sustainability; This
must lead us to be very creative and flexible, as well as to use increasingly
automated technological options in the process.
• Traceability: Guaranteeing information throughout the supply chain so that the
customer is always clear about where the requested merchandise is located will
be a fundamental tool in this increasingly interconnected world
• Reverse logistics: We must take it into account because, no matter how many
improvements we put in place, we will always have merchandise return cycles,
either due to rejection, returns or sustainability. The solutions to be implemented
in this reverse cycle must have the same guaranties as those we designed for
direct flows of merchandise. As online purchases will continue to increase, so will
product returns. Companies should find effective solutions to reduce their impact
of carbon footprint when carrying out their logistics. Also, the return experience is
critical to retain consumers.
In addition, speaking of the future of reverse logistics, according to a Deloitte Report
predicts that by the year of 2022, sellers will have 13 billion items returned, estimating a value of
$ 573 billion dollars a year. This estimation is four times the total of e-commerce sales that were
placed in 2008. (BIMSCHLEGER, PATEL, & LEDDY, 2019).
Lastly, according to the Locus report, it mentions that if we want to achieve a successful
management of product returns, it will take good analytical skills, great command and
understanding of customer and supply chain behavior. Reverse logistics determines the
consolidation of delivery businesses worldwide. The following years, reverse logistics will witness
immense changes that will generate more efficiency and increase profits. (NARASHIMMAN).

37
 Chapter 5: Conclusion

5.1 Research Results

After completing this Research, we have been able to draw the following conclusions.
We have understood the importance of reverse logistics within any business, especially
e-commerce, and how important it is to be careful in every step that is taken within it.
Second, within e-commerce, the creation of an agile and efficient system of returns and
after-sales service is of vital importance, since a correct management of a return can generate
confidence in the client, which can lead to this makes a sale in the future.
For this to be possible, the company must have full control over its logistics and a clear
order with its products in a warehouse, to manage reverse logistics without problems, that is,
returns.
On the other hand, we are faced with the recycling of all products that become obsolete
or that customers return to companies for being defective or not fulfilling their function. Many of
these of these products are not properly recycled and end up in oceans or landfills, damaging the
environment and ecosystems of hundreds of animal species.
In these cases, we see that good reverse logistics, either resorting to an Integrated
Logistics System, or to a company specialized in reverse logistics is important since it allows
granting a new useful life to many products, including them back into the production chain or
giving them proper recycling, as happens with sanitary products. This can be beneficial for the
production company, as it shows an image of responsibility with the environment and
sustainability.
Throughout the research, we have considered how e-commerce, can form such an
important part of people's lives from one day to the next, exponentially increasing our perception
of consumption and accelerating massive digitization, changing the perception we have of
consuming without even doubting, taking away the protagonist from physical business and
generating a great rivalry between companies that can adapt to continue competing and be at the
forefront.
Reverse Logistics is not a minor problem. An increasing number of people are taking the
fitting room to the home, like how they used to do it in stores. The challenge of reverse logistics
is critical for the perception and viability of many businesses, and it requires having a strategy
equivalent to shipping at an affordable cost, which does not eat up the product margin. Retailers
must have the certainty that everything is done to contribute to that area is not an expense but an
investment.
According to Jim Dempsey, a National Sales Manager in Panasonic, in his Article “The

38
Untapped Potential of Reverse Logistics in the supply says, “With the rise of e-commerce leading
to an influx of returns, products in the supply chain tend to spend more time in reverse channels
than in forwarding channels. The result is increased inventory, transportation, and warehousing
costs, and ultimately reduced profitability. As this market continues to grow, businesses must
respond accordingly or put themselves at risk of being overwhelmed by the volume of returns. By
implementing tools and processes such as mobile data collection, predictive analytics, data
sharing, and spatial planning, manufacturers and retailers can make the most of their returns and
improve both customer satisfaction and ROI.” Then, we can say that companies that can master
reverse logistics will achieve better results in the next few years of logistics evolution
(DEANGELIS, 2020; DEMPSEY, 2019).
We must remember that distribution plays an almost as important role as the good that is
sold. It does not happen only in the field of e-commerce but in almost all industries. Hence, the
importance of having logistics 'partners', who guarantee the fulfillment of what was promised at
the time of acquisition timely, and not with mere suppliers, in case the platforms themselves
cannot be developed.
This world is moving too fast, in any case. Managing logistics efficiently is not normally
the core competence of companies. The growth of reverse logistics globally provides the
opportunity for external operators to stand up and offering their services and exclusively handle
reverse logistics. Therefore, having reverse logistics controlled by an external company could
improve supply chain efficiency and help manufacturing and sales companies focus on their core
competency.

In summary, we can confirm that through this research we have answered the research
questions asked at the beginning of our analysis.
We have found the impacts that the COVID-19 crisis has had on reverse logistics, e-
commerce, and the products returned. Some of these can be mentioned, for example, there has
been a significant unexpected growth of sales through e-commerce, which forces the electronic
companies to pay more attention to their reverse logistics chain. The rise in online purchasing
means that more items are being returned, at the cost of the sellers. Consumer behavior has
changed over the last months and which can be seen by the rates of online sales and returning
items. Online retailers have been decreasing their revenue because of poor reverse logistics
system in returns. Also, the returns system is collapsing, taking more time than it normally does,
which makes the customers have a negative shopping experience. Even though pandemic has
increased sales online, shoppers still prefer to return items in a physical store. Also, there is an
impact on returned items where there is an increase in fraud by shoppers when they return a
product. Electronic companies are also being impacted by the employees which are getting
infected with the disease of COVID-19 and labor unions are shutting down warehouses in the
name of protecting the employees’ health.
39
 We have found the great importance of the relationship between reverse logistics and
ecommerce. Both sectors have been facing several challenges during the COVID-19 crisis, for
example, the pressure in the chain, the depreciation of the value, the high sensitivity of time, the
decrease of revenue for electronic sellers (even though they have more sales), the increase in
fraud in returned items, the collapse of warehouses, the lack of stock on essential items, the late
delivery of products, the spread of the COVID-19 virus in companies, etc. We recognize a high
dependence between electronic commerce and reverse logistics. Both of them are important to
each other, which shows us that companies should pay full attention to the operation of their
reverse logistics if they want to be successful.
We also look at the importance of recognizing the impacts caused by the COVID-19
pandemic so the organizations can develop solutions to face them. A solution to face these
impacts can be done by implementing or increasing the use of third-party companies that can
specialize only in return products and they can perfectly perform better reverse logistics. For
example, Amazon has FBA warehouses, but these are made only for forwarding logistics,
delivering products. Amazon could implement an FBA warehouse for returns and in this way, they
can have a better Reverse Logistics Chain, where neither the Sellers nor the customer nor the
environment are being affected.
We believe that a lot of can be taken from Amazon’s experiences regarding reverse
logistics to contribute to the development of better business and research. The pandemic has
drastically changed the world with various unfortunate side effects one of them being amazon’s
emergence as strong e-commerce and logistics company internationally.

5.2 Research Limitation

The limitations of a study are those attributes of the methodology that influenced the
conclusion of the finding from the research. This study had some limitations that need to be
considered.
We found the limitations of the absence of attested data and inadequacy of prior research
study on the subject matter. When we decided to do this case study on the impact of the COVID-
19 pandemic on reverse logistics and e-commerce, we defined it as a highly relevant topic that
should be analyzed. The limitation that we found during the investigation was the lack of sufficient
information. The reason for this is that the topic of this pandemic is very new and although a lot
of information can be found in many media, most of it has subjective data from the authors. Most
of the information we found has been changing rapidly and continues to change until now.
Also, the current restrictions of social distancing between individuals set up to decrease
the spread of COVID-19 made it difficult to conduct interviews, focus groups, or physical
investigations with people who have a lot of experience in the sectors that were investigated. We
could only research through the Internet media.
As we said, the selected topic has the potential to continue changing in these months
40
since we are still suffering from health problems worldwide, and the effects that it has still deserve
observation and research.

5.3 Future Research

With the purpose of backing up and strengthen the result of this research, there must be
further research on reverse logistics and ecommerce.
As we said, the selected topic can continue to change in these months since we are still
suffering from health problems worldwide, and the effects that it has still deserve observation and
research.
Also, it is worth mentioning that while we were researching through the selected topic, we
found another issue that is impacting the reverse logistic of ecommerce companies, which is the
following:
E-commerce companies must keep up with their returns, so they end up whether
destroying the item or send it to liquidators’ sellers.
The liquidation business allows the sellers to get the returned items and resale it on the
platforms once again instead of sending it to landfills. We see this phenomenon increasing a lot
during this COVID-19 crisis. According to a CBC Canada report, there is an estimation of 5 million
pounds of returns from all retailers ending up in United States landfills every year (CBC NEWS,
2020). we believe this phenomenon is worth of future research.

41
 References
As it is a very current topic, there are few studies and manuals on this topic. The
references of this research have been extracted from videos, blogs or newspaper articles, or
online professionals, in addition to using a manual also for writing.

ABC. (2020, APRIL 9). ABC ECONOMICS. Retrieved from https://www.abc.es/economia/abci-

afecta-coronavirus-pedidos-amazon-entregas-retraso-y-productos-agotados-
202004081441_noticia.html
AMAZON. (2020, JULY 30). ABOUT AMAZON. Retrieved from https://ir.aboutamazon.com/news-
release/news-release-details/2020/Amazon.com-Announces-Second-Quarter-Results/
AMAZON. (2020, MAY 27). Notice of 2020 Annual Meeting of Shareholders and Proxy Statement.
Retrieved from
https://s2.q4cdn.com/299287126/files/doc_financials/2020/ar/updated/2020-Proxy-
Statement.pdf
AMAZON. (n.d.). AMAZON. Retrieved from Return Items You Ordered:
https://www.amazon.com/gp/help/customer/display.html?language=en_US&nodeId=G6
E3B2E8QPHQ88KF
AMAZON SELLER FORUMS. (2020, MAY 20). AMAZON SERVICES SELLER FORUMS.
Retrieved from https://sellercentral.amazon.com/forums/t/more-customer-return-fraud-
due-to-covid19/624823
AMAZON STAFF. (2020, DECEMBER 16). ABOUT AMAZON. Retrieved from Amazon's COVID-
19 Blog: Updates on How We Are Responding to the Crisis:
https://www.aboutamazon.com/news/company-news/acciones-de-amazon-para-ayudar-
a-los-clientes-comunidades-y-empleados-afectados-por-el-covid-19
AMAZON STAFF. (2021, FEBRUARY 11). ABOUT AMAZON. Retrieved from
https://www.aboutamazon.com/news/operations/amazons-covid-19-testing-lab-
processes-more-than-1-million-tests-for-front-line-employees
AMAZON. (n.d.). SUSTAINABILITY ABOUT AMAZON. Retrieved from
https://sustainability.aboutamazon.com/about/the-climate-pledge
B. MERRIAM, S. (1998). Qualitative research and case study applications in education. San
Francisco: Jossey-Bass.
BALTRUSAITIS, J. (2020, APRIL 29). LEARN BONDS. Retrieved from
https://learnbonds.com/news/amazon-had-4bn-visitors-in-march-more-than-ebay-apple-
walmart-rakuten-combined/
BBC MUNDO (BBC WORLD). (2020, MARCH 2020). BBC. Retrieved from
https://www.bbc.com/mundo/noticias-51912081

42
BEETRACK. (2020). BEETRACK.COM. Retrieved from
https://www.beetrack.com/es/blog/logistica-y-distribucion
BERNARD, H. (2000). SOCIAL RESEARCH METHODS: Qualitative and quantitative approaches
. FLORIDA: SAGE Publications Inc.
BIMSCHLEGER, C., PATEL, K., & LEDDY, M. (2019). Deloitte Consulting LLP. Retrieved from
https://www2.deloitte.com/content/dam/Deloitte/us/Documents/process-and-
operations/us-bringing-it-back.pdf
BRAU, S. (14 de NOVEMBER de 2018). SEBASTIAN J BRAU. (WEBMASTER, Editor) Obtenido
de INDUSTRY 4.0: http://sebastianbrau.com/la-vision-de-la-industria-4-0-en-el-marco-
de-la-feria-industrial-de-hannover-messe-en-2011/
BYCOMERCIAL. (n.d.). Returns in Ecommerce. The big problem. Retrieved from
https://www.bycomercial.com/las-devoluciones-en-el-ecommerce-el-gran-problema/
CARDELLO, J. (2019, JUNE 13). WEBFLOW BLOG. Retrieved from
https://webflow.com/blog/advantages-and-disadvantages-of-ecommerce
CBC NEWS. (2020, OCTOBER 9). Tracking Amazon returns: Here's where they really go
(Marketplace). CANADA. Retrieved from
https://www.youtube.com/watch?v=W1yqcagavfY
CHOU, C. (2020, NOVEMBER 25). ALIZILA. Retrieved from NEWS FROM ALIBABA GROUP:
https://www.alizila.com/alibaba-shows-how-retailers-can-go-green-this-shopping-season/
CONSUMER RETURNS. (2021). CONSUMER RETURNS MANAGEMENT 2021. Retrieved from
https://consumerreturns.wbresearch.com/blog/amazon-reverse-logistics-warehouses-
strategy
DAVIS, S. (2020, OCTOBER 19). ROI REVOLUTION. Retrieved from
https://www.roirevolution.com/blog/2020/10/amazon-prime-day-2020-stats-recap-results/
DAVIS, S. (2021, JANUARY 11). ROI REVOLUTION. Retrieved from
https://www.roirevolution.com/blog/2021/01/top-9-ecommerce-trends-to-expect-in-2021/
DAVIS, S., & TONEY, L. (2021, JANUARY 28). ROI REVOLUTION. Retrieved from
https://www.roirevolution.com/blog/2021/01/coronavirus-and-ecommerce/
DEANGELIS, S. (2020, MAY 15). ENTERRA SOLUTIONS. Retrieved from
https://www.enterrasolutions.com/blog/the-impact-of-the-coronavirus-crisis-on-reverse-
logistics/
DECK, A. N. (2020, JANUARY 13). AITHORITY. Retrieved from
https://aithority.com/technology/debunking-jan-2-as-national-returns-day-data-shows-
dec-26-actually-biggest-day-for-returns/
DEMPSEY, J. (2019, AUGUST 29). SUPPLY CHAIN BRAIN. Retrieved from
https://www.supplychainbrain.com/blogs/1-think-tank/post/30151-the-untapped-potential-
of-reverse-logistics
DRENIK, G. (2020, DECEMBER 15). FORBES. Retrieved from
43
 https://www.forbes.com/sites/garydrenik/2020/12/15/how-retailers-are-bracing-for-
holiday-shopping-and-returns-during-the-pandemic/?sh=4b0323387e80
E. KOHAN, S. (2020, OCTOBER 28). Online Merchandise Returns To Hit $57 Billion For Holiday,
Innovation And Technology Are Making It Easier For Customers And Retailers. FORBES.
ELIAV, R. (2020, JULY 29). BRINGG. Retrieved from https://www.bringg.com/blog/logistics-
management/optimize-reverse-logistics-efficiency-scale/
GAIBOR SILVA, T., & AGUILAR MIRANDA, G. (2017, JULY-SEPTEMBER). Reverse logistics
and your responsibility to the environment. Magazine Contributions to the Social Sciences.
Retrieved from https://www.eumed.net/rev/cccss/2017/03/logistica-inversa-
medioambiente.html
GOShare. (2019, JULY 18). GoShare.co. Retrieved from https://goshare.co/what-is-reverse-
logistics/
goTRG. (2021, February). goTRG. Retrieved from https://www.gotrg.com/
HALZACK, S. (2020, DECEMBER 21). CRAIN´S CHICAGO BUSINESS. Retrieved from Retailers
should brace for tidal wave of returns: https://www.chicagobusiness.com/opinion/retailers-
should-brace-tidal-wave-returns
HOFFMAN, C. (n.d.). UNI GLOBAL UNION. Retrieved from
https://www.uniglobalunion.org/sites/default/files/attachments/pdf/amazoncovid_es.pdf
INFORMACION LOGISTICA ( LOGISTIC INFORMATION). (8 de APRIL de 2019).
INFORMACIONLOGISTICA.COM. Obtenido de http://informacionlogistica.com/la-
logistica-inversa-como-elemento-de-la-economia-circular/
JIMENEZ, M. (2020). Amazon makes the biggest profit in its history despite the coronavirus. EL
PAIS ECONOMICS ( THE COUNTRY ECONOMICS).
JIMENEZ, M., & S. SANCHEZ DE ROJAS, F. (2020, MAY 1). EL PAIS ( THE COUNTRY ).
Retrieved from FIVE DAYS:
https://cincodias.elpais.com/cincodias/2020/04/30/companias/1588268281_754440.html
K, T. (2016, AUGUST 11). LEAN SUPPLY SOLUTIONS. Retrieved from
http://www.leansupplysolutions.com/blog/important-benefits-of-a-reverse-logistics-
strategy/
KAPNER, S., & ZIOBRO, P. (2021, JANUARY 10). THE WALL STREET JOURNAL. Amazon,
Walmart Tell Consumers to Skip Returns of Unwanted Items. Retrieved from
https://www.wsj.com/articles/amazon-walmart-tell-consumers-to-skip-returns-of-
unwanted-items-11610274600
KIM, E. (2020, APRIL 30). BUSINESS INSIDER. Retrieved from
https://www.businessinsider.es/coronavirus-amazon-nos-dira-cuanto-ha-crecido-
comercio-electronico-632219
KULWIEC, R. (2006). AME. Retrieved from Association for Manufacturing Excellence:
https://www.ame.org/sites/default/files/target_articles/06-22-3-
44
 Reverse%20Logistics%203-06.pdf
LANE, A. (2014, NOVEMBER 17). SHOPIFY. Retrieved from
https://www.shopify.es/blog/15875828-4-consejos-para-reducir-la-tasa-de-devoluciones-
en-tu-tienda-virtual
LIU, C. (2020, DECEMBER 28). INSIDER INTELLIGENCE EMARKETER. Retrieved from
https://www.emarketer.com/content/haves-have-nots-divides-deepen-across-retail-amid-
pandemic?ecid=NL1001
MCDOWELL, M. (2020, MAY 5). Retrieved from https://www.voguebusiness.com/technology/the-
inconvenient-challenge-of-online-returns-optoro-returnly
MEGHANI, R. (2019). MAGNETO IT SOLUTIONS. Retrieved from
https://magnetoitsolutions.com/infographic/e-commerce-product-return-
rate#:~:text=By%202020%2C%20online%20return%20deliveries,of%20returning%20so
me%20of%20them.
NARASHIMMAN, L. (n.d.). LOCUS. Retrieved from https://locus.sh/documents/the-history-
evolution-and-future-of-reverse-logistics.pdf
NARVAR. (2020). CORP NARVAR. Retrieved from https://corp.narvar.com/state-of-returns-new-
expectations
North Central University. (2021, February). North Central University Library. Retrieved from
https://ncu.libguides.com/researchprocess
NUÑO, P. (2017, SEPTEMBER 29). ZEUS. Retrieved from DATA BLOG :
https://datablog.zeus.vision/2017/09/29/conoces-los-diferentes-tipos-de-comercio-
electronico/
OPTIMO ROUTE. (2020, JUNE 24). OPTIMO ROUTE. Retrieved from
https://optimoroute.com/reverse-logistics-companies/
PALACIOS, M. (2016, NOVEMBER 22). IMF BUSINESS SCHOOL. Retrieved from Returns:
Reverse Logistics ... Or the other way around?: https://blogs.imf-
formacion.com/blog/logistica/logistica/devoluciones-logistica-inversa/
PEREZ CARMONA, A. (2014). antonioperezcarmona. Obtenido de
http://antonioperezcarmona.es/historia-de-la-logistica/
PETERS, J. (2020, APRIL 8). THE VERGE. Retrieved from
https://www.theverge.com/2020/4/8/21213742/amazon-temporarily-extending-return-
policy-covid-19-pandemic
POST AND PARCEL. (2020, DECEMBER 15). APPROXIMATELY 85% OF GOODS ON
ALIBABA’S E-COMMERCE PLATFORMS NOW ELIGIBLE FOR RETURNS. Retrieved
from https://postandparcel.info/130248/news/e-commerce/approximately-85-of-goods-
on-alibabas-e-commerce-platforms-now-eligible-for-returns/
RAJAPACK. (s.f.). RAJAPACK.ES. Obtenido de https://www.rajapack.es/blog-
es/productos/mejorar-gestion-logistica-devoluciones/
45
RECONDO, E. (2020, MARCH 2). LOGISTICS INFORMATION. Retrieved from
https://informacionlogistica.com/que-es-la-logistica-4-0/
RENTERO, A. (20 de 02 de 2018). HIBERUS. Obtenido de https://www.hiberus.com/crecemos-
contigo/la-logistica-inversa-que-es-y-para-que-sirve/
RETAILING MANAGEMENT. (2020, MARCH 02). THE RETAILING MANAGEMENT. Retrieved
from https://www.theretailingmanagement.com/?p=2265
RUBIO LACOBA, S. (2003). UNEX LIBRARY. Retrieved from
https://biblioteca.unex.es/tesis/8477236135.PDF
SACRED HEART UNIVERSITY. (2008). SACRED HEART UNIVERSITY LIBRARY. Retrieved
from https://library.sacredheart.edu/c.php?g=29803&p=185918
SACRED HEART UNIVERSITY. (n.d.). LIBRARY SACRED HEART UNIVERSITY. Retrieved
from https://library.sacredheart.edu/c.php?g=29803&p=185902
SAMET, A. (2020, DECEMBER 30). BUSINESS INSIDER. Retrieved from
https://www.businessinsider.com/global-ecommerce-2020-report?r=MX&IR=T
SANAUL HASAN, G. (2018, MARCH 7). LINKEDIN. Retrieved from
https://www.linkedin.com/pulse/e-commerce-relationship-logistics-gazi-sanaul-hasan/
SLYWOTZKY, A., CHRISTENSEN, C., TEDLOW, R., & CARR., N. (2000, JANUARY-
FEBRUARY). HARVARD BUSINESS REVIEW. Retrieved from
https://hbr.org/2000/01/the-future-of-commerce
STARKEY, A., METAPACK, & IMRG. (2020). IMRG.ORG. Retrieved from The Retail Insight
People:
https://www.imrg.org/uploads/media/default/0001/09/aee8f77eb4d47ccae59293c2518ea
67641e5a89d.pdf?st
URBANO MATEOS, S. (n.d.). ECOMMERCE TODAY. Retrieved from
https://www.actualidadecommerce.com/que-es-e-commerce/
VALERO, C. (2020, MARCH 17). AZ ADSL ZONE. Retrieved from
https://www.adslzone.net/noticias/internet/problemas-amazon-coronavirus/
VERWIJMEREN, M. (2017, APRIL 25). MPO. Retrieved from CUSTOMER CHAIN CONTROL:
https://blog.mpo.com/five-critical-benefits-from-reverse-logistics-software
VILLAECIJA, R. (2019, JANUARY 13). Online returns take a toll on the merchant: three out of 10
products are 'lost'. EL MUNDO ( THE WORLD ), p. 1. Retrieved from
https://www.elmundo.es/economia/ahorro-y-
consumo/2019/01/13/5c389b2b21efa0d0688b46d6.html
WALLIMAN, N. (2005). YOUR RESEARCH PROJECT. LONDON: SAGE PUBLICATIONS.
WEBFX. (n.d.). WEBFX. Retrieved from Ecommerce Advantages and Disadvantages:
https://www.webfx.com/internet-marketing/ecommerce-advantages-and-
disadvantages.html

46