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Transportation Research Procedia 55 (2021) 318–325

14th International scientific conference on sustainable, modern and safe transport

14th International scientific conference on sustainable, modern and safe transport
Analysis of return logistics in e-commerce companies on the
Analysis of return logistics in e-commerce companies on the
example of the Slovak Republic
example of the Slovak Republic
Mykhailo Dobroselskyiaa, Radovan Madleňákbb, Dominik Laitkepcc
Mykhailo Dobroselskyi , Radovan Madleňák , Dominik Laitkep
a
University of Zilina, Univerzitná 8215/1, 01026 Žilina, Slovakia
b
a
University of Zilina, Univerzitná 8215/1, 01026 Žilina, Slovakia
bc
University of Zilina, Univerzitná 8215/1, 01026 Žilina, Slovakia
c
University of Zilina, Univerzitná 8215/1, 01026 Žilina, Slovakia
Abstract
Abstract
The development of technology and globalization has increased the possibilities of e-commerce and allowed further development
The development
of world of technology
trade. E-commerce hasand globalization
changed the wayhas youincreased
do business the possibilities of e-commerce
and the concept and allowed
of buying. With further
the growth development
of e-commerce,
of worldneed
traders trade.to E-commerce has attention
pay significant changed the to way
their you do business
companies' and functionality
critical the concept of- buying. Withsatisfy
logistics-to the growth of e-commerce,
customers. With the
traders need of
development to the
paye-commerce
significant industry,
attention online
to their companies'
stores have to facecritical functionality
a massive number -oflogistics-to
problems. Onesatisfy customers.
of the With the
most significant is
development of the and
the return of goods e-commerce industry,ofonline
the organization returnstores haveThe
logistics. to face
scalea ofmassive
refundnumber of problems.
management One scale
on a global of theismost significant is
enormous.
the
Thereturn
articleofanalyzes
goods and thethe organization
current stage ofofreturn
returnlogistics
logistics.inThe
the scale
worldofofrefund management
e-commerce. We alsoon asurveyed
global scale is enormous.
companies that sell via
The article analyzes
the Internet the current
in Slovakia. Based onstage
theofresponses,
return logistics
globalinstatistical
the worldindicators'
of e-commerce. We also are
return logistics surveyed companies
compared with thethat sell via
Slovak e-
the Internetmarket.
commerce in Slovakia. Based on the responses, global statistical indicators' return logistics are compared with the Slovak e-
commerce
© 2021 Themarket.
Authors. Published by ELSEVIER B.V.
© 2021 The Authors. Published by ELSEVIER B.V.
© 2021
This The
is an
an Authors.
open accessPublished by ELSEVIER
article under
under the CC
CC BY-NC-NDB.V.
BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
(https://creativecommons.org/licenses/by-nc-nd/4.0)
This is open access article the license
Peer-review under responsibility of the scientific committee of (https://creativecommons.org/licenses/by-nc-nd/4.0)
This is an
Peer-review open access
under article under
responsibility of the CC BY-NC-ND
scientific committeelicense
of the
theTRANSCOM
TRANSCOM2021: 2021:14th
14thInternational
Internationalscientific
scientificconference
conference
Peer-review
on
on sustainable,
sustainable,under responsibility
modern
modern and
and safe of the scientific committee of the TRANSCOM 2021: 14th International scientific conference
safetransport
transport
on sustainable,
Keywords: modernreverse
e-commerce, and safe transport
logistics, return logistics, online shopping, goods returns, return management
Keywords: e-commerce, reverse logistics, return logistics, online shopping, goods returns, return management

1. Introduction
1. Introduction
The world has seen a massive increase in online sales over the last years. Even if there were some hints of
The worldintensive
stabilization, has seengrowth
a massive increase in and
of e-commerce online sales overcontinues
development the last years.
every Even
year inif many
there developed
were somecountries.
hints of
stabilization,
Market intensive
penetration growth
would of e-commerce
increase by 25% by and2026,development
as analysts continues every yearToday,
recently predicted. in many the developed
e-commerce countries.
market
Market
can penetration
undoubtedly be would increase
attributed to onebyof25% by 2026,
the most as analysts
promising recently predicted.
and fast-growing marketsToday,
of thisthe e-commerce
type market
in the world. The
can
signundoubtedly be attributed
of rapid annual to onethe
growth reflects of dynamics
the most promising and fast-growing
of online trade. The volumemarkets of this
of growth type
in the in the
world byworld.
the endThe
of
sign
2020of rapid
was annualtogrowth
expected be 4206reflects
billionthe dynamics
dollars. (Fig.of1)online trade.
(Statista The volume
– Global of Data
Business growth in the world
Platform (2020),byEscursell
the end of
et
2020 was expected to be 4206 billion dollars. (Fig. 1) (Statista – Global Business Data Platform (2020), Escursell et
al. (2020)).
al. (2020)).

2352-1465 © 2021 The Authors. Published by ELSEVIER B.V.

2352-1465
This © 2021
is an open accessThe Authors.
article underPublished by ELSEVIER
the CC BY-NC-ND B.V.
license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under
This is an open responsibility
access of the scientific
article under CC BY-NC-NDcommittee of the
license TRANSCOM 2021: 14th International scientific conference on sustainable,
(https://creativecommons.org/licenses/by-nc-nd/4.0)
modern and safe
Peer-review undertransport
responsibility of the scientific committee of the TRANSCOM 2021: 14th International scientific conference on sustainable,
modern and safe transport
2352-1465 © 2021 The Authors. Published by ELSEVIER B.V.
This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under responsibility of the scientific committee of the TRANSCOM 2021: 14th International scientific conference on
sustainable, modern and safe transport
10.1016/j.trpro.2021.06.037
 Mykhailo Dobroselskyi et al. / Transportation Research Procedia 55 (2021) 318–325 319
Alena Novák Sedláčková, Anna Tomová jr / Transportation Research Procedia 00 (2019) 000–000 2

Fig. 1. Retail e-commerce sales worldwide from 2014 to 2023 (Statista – Global Business Data Platform (2020))

China, the USA, and the UK are leaders for several years by world sales ranking on the Internet market (Fig. 2).
For example, in 2019, China has increased revenue from electronic sales by 23,10%, the USA 14%, and the UK
10%. (Forecast growth in the percentage of online retail (2020)).

Fig. 2. Top 3 Countries, Ranked by Retail Ecommerce Sales in billions of dollars (Note: includes goods or services ordered using the Internet via
any device, regardless of the method of payment or fulfillment; excludes travel and event tickets, payments such as bill pay, taxes or money
transfers, food services and drinking place sales, gambling and other vice good sales; *excludes Hong Kong) (Forecast growth in the percentage
of online retail (2020))

2. Literature review

Logistics is also rapidly developing, like e-commerce. Logistic has become one of the most significant and
dynamically developing industries, but the percentage of return items is sometimes lower or higher. For example,
the books by 10-15%; the computers and components by 10-18%; clothing up to 30–40%; mass consumption goods
5–15%. Returns and complaints are an integral part of e-commerce. Online retailers are more likely to receive goods
returns than their counterparts in traditional retailers. Returns of purchased goods using the Internet can be 20-80%.
Other studies have found that at least 30% of all e-commerce orders worldwide ends up like returning package,
compared with 8.89% of regular sales in stores (Mokhirev (2016), Pei et al. (2018), Kvasnicova et al. (2016),
Hudák, M., Kianičková, E., & Madleňák, R. (2017), Das et al. (2020)).
End-users initiate most returned goods. Internet shopping is associated with delivery risk. There is also a risk
where buyers properly evaluate the goods and their aspects, such as smell, touch, color, functionality, performance,
design, etc. This risk evaluates to information asymmetry between buyers. Manufacturers often overestimate their
goods, they incorrectly presenting information about their goods, and then consumers cannot consider the real value
of goods properly (Hudák et al. (2017)). For example, goods are different on websites than in the real world,
320 Mykhailo Dobroselskyi et al. / Transportation Research Procedia 55 (2021) 318–325
Alena Novák Sedláčková, Anna Tomová jr / Transportation Research Procedia 00 (2019) 000–000 3

approximately 22% of cases. Retailers often provide consumers with detailed goods information, which can reduce
the uncertainty perceived value of the goods at the time of purchase. It can also reduce the likelihood of returning
goods and the cost of returning goods to retailers. Retailers should take care of all the information about the goods
sold to reduce their return risk. (Safonov (2020), Mokhirev (2016), Guo (2018), Madudova (2017)).
Large international online retailers frequently offer returning goods within 14 days without return reason from
receiving goods. By providing the free return policy, retailers have created a loss-making business, and It seems
logical. Much research has shown us that a flexible return policy and the proper handling of returns positively affect
shopping behavior and the number of purchases (Matúšková et al. (2017), Mienkovic et al. (2015)). So, why loss-
making business? As is evident from research in this area, buyers are increasingly exercising this right; for example,
the number of returns to the United Kingdom in 2020 was 45%, Italy 45%, Poland 36%, Spain 49%, Germany 56%,
France 46%, Sweden Denmark 44%, Norway 36%, Finland 36%. If we take the percentage of return of goods above
the mentioned countries (as a basis), the average percentage of returns in Europe will be 43.5%. Many online
retailers now consider avoiding this high rate of return because it is to very costly process. (Safonov (2020), e-
commerce in Europe (2020), Westmaas (2018), Strenitzerova et al. (2017), Vaculik et al. (2015) Frei et al. (2020)).
As return policies are an integral part of the competition for a loyal customer, returns are welcomed by online
retailers in the United States and also in Europe. In terms of logistics, returns management is efficient as returned
goods can be re-shipped to customers either in their current state or after revision (Madleňáková et al. (2019), Novák
et all (2019)). Using processed and recycled goods can reduce the cost of goods, leading to increased
competitiveness due to the low price of the goods and can increase profit for the enterprise. Using spare parts is
much cheaper than manufacturing the new products, and also this method will not endanger the environment
(Chumak (2019), Pavlova et al. (2016), Matúšková et al. (2017), Madleňák et al. (2020), Lamba et al. (2019),
Novák (2006)).

3. Methodology

The main objective of this paper was to study return's management in retail trade by firms that sell goods via the
Internet in the Slovak Republic using a quantitative method to find out: what type of goods they sold by stores via
the Internet and the amount of returned goods from customers without explanation.
To complete the main objective, we conducted a survey of companies using questionnaires that we sent by e-
mail. The survey was conducted from early October 2020 to early January 2021. Based on the data analyzed in the
literature review, a questionnaire was developed. The questionnaire included key questions as a: what range of
goods is sold by the store via the Internet and what is the percentage of returned goods, without explanation, per
month depending on the region.
The list of surveyed companies was taken from the Internet portal nakupujemzdomu.sk, where many companies
are registered, approximately 8874, which conduct business on the Internet in the Slovak Republic. After finding our
audience, we used the following formula (1) to calculate the sample.

𝜎𝜎 2
𝑛𝑛 ≥ (𝑡𝑡1−𝛼𝛼 )2 ∗ (1)
2 ∆2

where:
n - is the minimum sample size (minimum number of respondents),
t_(1-α/2) - is the critical value determined from the tables (critical values of the normalized normal
distribution),
σ2 - is the spread calculated from the standard deviation,
Δ - is the maximum allowable margin of error.
Then we2put the values into the formula:
1,96 2
𝑛𝑛 ≥ 2 x 0,5 = 384 respondents
0,05
 Mykhailo Dobroselskyi et al. / Transportation Research Procedia 55 (2021) 318–325 321
Alena Novák Sedláčková, Anna Tomová jr / Transportation Research Procedia 00 (2019) 000–000 4

4. Data Analysis

The questionnaire was started with the first question, "What assortment of goods the store offers for selection";
the following answer options were offered: "white techniques" (household appliances), electronic goods (PCs,
mobile phones, etc.)), books, clothes and shoes, medicines, toys and baby food, sports goods, food, home and garden
and other. Regarding the question "Please indicate as a percentage how many goods per month do your customers
return without explaining the reasons, depending on the region in which they are selling?", respondents had a choice
a scale that included the following answer options from 0 to 30% with step 2% (0-2%, 2-4% ... 28-30%). The
following regions of the Slovak Republic have analyzed: Bratislava, Trnava, Trenčín, Nitra, Žilina, Banská Bystrica,
Prešov, and Košice.
We received the following answers to the first question (Fig. 3). As shown in Fig. 3, the other option scored the
highest percentage of answers - 30%. On the second place, with a size of 14%, clothing and footwear scored the
answer, third place in terms of the number of responses in 13% was achieved by home and garden, fourth - 12% -
sports goods, fifth - 8% - food, sixth - 6% - household goods, seventh - 6% - electronic goods (PCs, mobile phones,
etc.), eighth 4% - books, ninth 4% - toys and baby food and tenth - 3% - white goods.

Fig. 3. Statistics of goods sold according to the classification by Slovak companies in the Internet space (1 - household appliances (Household
appliances), 2 - electronics (PCs, mobile phones, etc.), 3 - books, 4 - clothes and shoes, 5 - medicines, 6 - toys and baby food, 7 - sports goods, 8 -
food, 9 - home and garden, 10 - other) (Source: Autor)

Another question in the questionnaire was "Please indicate as a percentage how many goods per month do your
customers return without explaining the reasons, depending on the region in which they are selling?", To this
question, we received the following answers, which are shown in Fig. 4. As you can see from the graph, on average,
the percentage of return by regions ranges from 2.21% to 2.68%.

Fig. 4. Percentage of returned goods without reason given by buyers in e-commerce from the point of view of sellers. (Source: Autor)
 322 Mykhailo Dobroselskyi et al. / Transportation Research Procedia 55 (2021) 318–325
Alena Novák Sedláčková, Anna Tomová jr / Transportation Research Procedia 00 (2019) 000–000 5

We used descriptive statistics and tests for analyzing data to determine the possibility of systematic relationships
between samples. Descriptive statistics were used to analyze the survey results by converting all numerical data into
graphical form. Descriptive statistics were needed to test the samples for normal distribution and then for selecting
the correct tests to determine the existence of systematic relationships between samples, independent variables (a
type of goods sold by online stores), and dependent variables (number of returned goods from customers without
explanation reasons).
Based on realized literature review and the analysis of responses from reviewers (see above), we have proposed
the following hypotheses:
• H0 - There is no significant existence of patterns between the percentage of returned goods and types of goods in
e-commerce.
• H1 - There is a significant existence of patterns between the percentage of returned goods and types of goods in
e-commerce.
• H0 - The average percentage of returned goods in the Slovak Republic is consistent with global data - 30%
(referred to in section literature review).
• H1 - The average percentage of returned goods in the Slovak Republic is not consistent with global data - 30%
(referred to in section literature review).

5. Result and Discussion

We used SPSS software for statistical analysis of the results obtained. The first step was to analyze data by using
descriptive statistics (table 1). As you can see from the table, some respondents did not answer some questions at all.
For example, in question "What type of goods for sale do you offer online", 384 answers were received, but for the
second question, "Please indicate as a percentage how many goods per month do your customers return without
explaining the reasons, depending on the region in which they are selling?" we received just 282 answers (region of
Prešov). In this case, responses also apply to the question "what percentage of the returned goods per month without
explanation, depending on the region in which the online store is selling," where we received a different number of
responses. It is because some online stores sell their goods in some regions. By analyzing the data from table 1, it
can be shown that our samples do not have the same number of responses. In the second step, we decided to check
whether the normal distribution data contain the correct choice of systematic relationship analysis. It is a necessary
procedure for ensurin the correct statistical test was selected in the subsequent finding of systematic relationships
between the type of product and its percentage of return.
Table 1. Descriptive Statistics

N Minimum Maximum Mean (middle) Std. Deviation

Region of Bratislava 306 1 29 2.03 3.57

Region of Trnava 287 1 29 2.12 3.13

Region of Trenčín 278 1 29 2.09 3.18

Region of Nitra 283 1 29 2.13 3.28

Region of Žilina 300 1 29 2.3 3.50

Region of Banská Bystrica 283 1 29 2.10 3.07

Region of Prešov 282 1 29 2.23 3.42

Region of Košice 284 1 29 2.51 3.75

During the preparation of the received answers, we checked the distribution's normality where we noticed
distribution of returned goods depends and regions correlation. It will be incorrect to analyze the normality of the
distribution of returned goods depending on the regions, because we received a small number of responses (table 2).
So, we decided to combine all regions of answers in general by group of goods for purpose of determining the
 Mykhailo Dobroselskyi et al. / Transportation Research Procedia 55 (2021) 318–325 323
Alena Novák Sedláčková, Anna Tomová jr / Transportation Research Procedia 00 (2019) 000–000 6

existence of systematic relationships throughout the whole Slovak Republic.

Table 2. The number of responses received depending on the type of goods and region
Bratislava Trnava Trenčín Nitra Žilina Banská Bystrica Prešov Košice
White goods 7 8 7 7 9 7 7 7
Electronics goods 16 16 16 15 17 16 15 15
Books 15 15 15 16 16 15 16 15
Clothing and footwear 38 34 34 34 35 34 34 35
Household shop 20 21 19 19 22 19 19 19
Toys and baby food 11 12 11 11 12 13 11 11
Sports goods 31 31 32 33 33 30 33 31
Food 26 24 24 25 26 25 25 24
House and garden 48 45 44 45 46 46 45 46
Other 94 81 76 78 84 78 78 81
We obtained results by using a one-sample Kolmogorov-Smirnov test (table 3) with the null hypothesis of the
sample's normal distribution for checking normality of the distribution. The deviation from the normal distribution is
considered significant at p < 0.05, in this case, nonparametric tests should be used for the corresponding variables.
Ten types of all groups of goods sold on Internet was executed in test. As we can see from the table 3, the p-value
(2-sided) for all product groups is less than 0.05 more precisely 0.00 which suggest the probability of error. This
values of normal distribution are poorly significant. Distribution of the received answers is not-normal as we can
declare from results of Kolmogorov-Smirnov test.

Table 3. One-sample Kolmogorov-Smirnov test for distribution normality

Clothing House
White Electronics Household Toys and Sports
Books and Food and Other
goods goods goods baby food goods
footwear garden
p-value
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000
(2-sided)

When we use the abnormal distribution of samples it is necessary to work with non-parametric statistical criteria
for identify significant patterns between the studied samples. For determining the existence of significant patterns
between the type of product and its percentage of return, we decided to use the Kruskal - Wallis test (table 4).

Table 4. Kruskal – Wallis test for the presence of significant systematic relationships
Clothing House
White Electronics Household Toys and Sports
Books and Food and Other
goods goods goods baby food goods
footwear garden
Asymptotic
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000
Significance
We obtained an asymptotic significance of less than 0.05, specially .00 values after the Kruskal-Wallis test for all
types of products. These results indicates the existence of significant patterns between the percentage of returned
goods and their type. Based on results of obtained test, we can reject our null hypothesis and accept our alternative
hypothesis.
The next step will be to test the second hypothesis, which indicated that the percentage of returned goods
coincides with or approximates the total percentage of returned goods we considered with global data - 30%. To test
this hypothesis, we decided to use a single sample t-test, which checks the difference between the average value of
one variable from a given constant. In our case, the world Fig. and automates the calculation of the size of the t-test
(table 5).
324 Mykhailo Dobroselskyi et al. / Transportation Research Procedia 55 (2021) 318–325
Alena Novák Sedláčková, Anna Tomová jr / Transportation Research Procedia 00 (2019) 000–000 7

Table 5. One-Sample test

Test Value = 30
p-value (2- 95% Confidence Interval of the Difference
N t df Mean Mean Difference
tailed) Lower Upper
All Regions 2303 -424.90 2302 2.21 .000 -27.68682 -27.81 -27.55
Now, we can reject the null hypothesis and accept the alternative. As you can see from the test, the average value
of the percentage of returned goods purchased in online stores in the Slovak Republic is significantly different from
the world figure, as indicated by the parameter p-value (2-tailed) from table 5. We would also like to emphasize that
the average value we obtained in table 5 is 2.21%, much lower than the world average.
The hype about e-commerce is growing every year, gaining more and more popularity among the people. It has
helped increase the area of selling goods to businesses and companies, but it has also helped people shop anytime
and anywhere. Thanks to its tireless and constant growth, technologies are still being developed to make online
shopping even more accessible. However, this is not enough at the moment. People still cannot fully appreciate the
goods which they are buying online. It leads to frequent returns of goods back to the sellers.
Our paper aimed to check the existence of systematic links between the type of goods being sold on the Internet
and the percentage of return in the Slovak Republic and the average value of the returned goods in the Slovak
Republic with the global value.
We obtained positive results by using of the Kruskal - Wallis test for existence of significant patterns between the
type of goods sold online and the percentage of its return. We received Asymptotic Significance 0.000 for all types
of goods purchased online. Based on result, we adopted an alternative hypothesis, which indicates the existence of
significant patterns between the type of goods purchased online and its percentage of returning back to sellers
without explaining the reasons.
We also linken the average values of returned goods in the Slovak Republic with worldwide indicators. The One-
Sample test showed us significantly cuted values. Percentage of returned good by 2.21% in the Slovak Republic is
significantly less than 30% by the worldwide figure. From these results, we obtained two conclusions:
1. The goods purchased online in the Slovak Republic are much less often returned to sellers. We can declare by
comparing the obtained value with the world value that countries where this percentage can be much higher,
such a seven value, as we received during the test. For obtaining such a considerable average value, as we
indicated by the world figure, the rate of return in some countries must and can be much higher than in the
Slovak Republic.
2. We obtained such a small average percentage of return of goods during the experiment due to an insufficiently
large sample. To ensure the obtained result, we will continue to collect data to increase the current sample. It
will help us to confirm or refute the obtained statistical results finally.

Acknowledgments

"This publication was realized with support of Operational Program Integrated Infrastructure 2014 - 2020 of the
project: Innovative Solutions for Propulsion, Power and Safety Components of Transport Vehicles, code ITMS
313011V334, co-financed by the European Regional Development Fund".

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