Assessing performance metrics for e-commerce reverse logistics and circular economy initiatives in supply chains: the five R’s model approach

Purpose The research explores the impact of e-commerce reverse logistics practices on the circular economy. It uses the Five R’s model to evaluate these practices. The objectives are to assess the effectiveness of these strategies, identify areas for improvement and develop practical recommendations for e-commerce companies to integrate sustainable practices into their operations. Design/methodology/approach The study analyzes data on reverse logistics partnerships and recovery services in southern India using a Non-probabilistic sampling method. The data was collected from 208 samples, spanning from December 2023 to March 2024. Structural Equation Modeling (SEM) was used to validate the model and hypotheses. A structured questionnaire was created to explore reverse logistics practices and their connection to the circular economy. Findings The study found that circular economy principles, reverse logistics practices, technology information systems and supply chain design significantly impact productivity and sustainability. These factors account for 36% of performance metrics variation, with productivity standing at 38% and sustainability at 27%. To enhance sustainability, e-commerce businesses should adopt comprehensive strategies, including consumer education, optimizing reverse logistics systems, investing in technology and collaborating across the supply chain. Expanding research, benchmarking against industry best practices and addressing consumer behavior challenges can also contribute to a circular economy. Originality/value The research explores the integration of circular economy principles into e-commerce, focusing on reverse logistics and circular economy initiatives. It introduces the Five R’s model for developing customized sustainability strategies and validates these frameworks through factor analysis and statistical modeling.