Abstract: The rapid growth of global e-commerce has significantly increased the complexity of supply chains, particularly in relation to product returns. Reverse logistics, the process of managing returns from consumers back to sellers or manufacturers, has become a critical area for businesses to address. While traditional logistics focus on efficient product delivery, reverse logistics involves added layers of cost, inefficiency, and challenges that impact financial performance. This study aims to analyse the financial implications of reverse logistics in the e-commerce supply chain, highlighting key cost structures, return policies, technological solutions, and challenges in the context of e-commerce. A conceptual framework for reverse logistics challenges is proposed, aimed at enhancing business performance through effective return management strategies. The study also explores regional and cultural variations, the role of technology in cost optimization, and customer behavior's impact on reverse logistics costs. The findings suggest that while reverse logistics poses significant financial risks, strategic management can convert these challenges into competitive advantages by improving profitability, customer satisfaction, and sustainability.

Keywords: Reverse Logistics, E-commerce Supply Chain, Financial Implications, Return Management, Technology Optimization, Circular Economy, Customer Behavior, Supply Chain Complexity, Product Returns, Profitability, Sustainability.

| DOI: 10.17148/IARJSET.2025.12581