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Impact of artificial intelligence adoption on online returns policies

Yang, Guangyong; Ji, Guojun; Tan, Kim Hua

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Authors

Guangyong Yang

Guojun Ji

KIM TAN kim.tan@nottingham.ac.uk
Professor of Operations and Innovation Management



Abstract

The shift to e-commerce has led to an astonishing increase in online sales for retailers. However, the number of returns made on online purchases is also increasing and have a profound impact on retailers’ operations and profit. Hence, retailers need to balance between minimizing and allowing product returns. This study examines an offline showroom versus an artificial intelligence (AI) online virtual-reality webroom and how the settings affect customers’ purchase and retailers’ return decisions. A case study is used to illustrate the AI application. Our results show that adopting artificial intelligence helps sellers to make better returns policies, maximize reselling returns, and reduce the risks of leftovers and shortages. Our findings unlock the potential of artificial intelligence applications in retail operations and should interest practitioners and researchers in online retailing, especially those concerned with online returns policies and the consumer personalized service experience.

Citation

Yang, G., Ji, G., & Tan, K. H. (2022). Impact of artificial intelligence adoption on online returns policies. Annals of Operations Research, 308(1-2), 703–726. https://doi.org/10.1007/s10479-020-03602-y

Journal Article Type Article
Acceptance Date Mar 27, 2020
Online Publication Date Apr 10, 2020
Publication Date 2022-01
Deposit Date Apr 20, 2020
Publicly Available Date Mar 29, 2024
Journal Annals of Operations Research
Print ISSN 0254-5330
Electronic ISSN 1572-9338
Publisher Springer Verlag
Peer Reviewed Peer Reviewed
Volume 308
Issue 1-2
Pages 703–726
DOI https://doi.org/10.1007/s10479-020-03602-y
Keywords Management Science and Operations Research; General Decision Sciences
Public URL https://nottingham-repository.worktribe.com/output/4315765
Publisher URL https://link.springer.com/article/10.1007%2Fs10479-020-03602-y

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