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Preventing Return Fraud in Reverse Logistics—A Case Study of ESPRES Solution by Ethereum

1
Department of Information Management, National Yunlin University of Science and Technology, Douliu 64002, Taiwan
2
Department of Electrical and Computer Engineering, Iowa State University, 2520 Osborn Drive, Ames, IA 50011, USA
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Author to whom correspondence should be addressed.
Academic Editors: Danny C.K. Ho and Tsz Leung Yip
J. Theor. Appl. Electron. Commer. Res. 2021, 16(6), 2170-2191; https://doi.org/10.3390/jtaer16060121
Received: 2 July 2021 / Revised: 28 August 2021 / Accepted: 30 August 2021 / Published: 1 September 2021
(This article belongs to the Special Issue Supply Chain Digitalization)
With the rapid development of e-commerce services, online retail has evolved from multi-channel to omni-channel in order to provide customers with more services. However, reverse logistics services (returns and exchanges) have become the target of many fraudulent activities, causing a lot of economic losses for many online retail companies. The current challenge of the traditional countermeasure is it requires a lot of manpower and training resources. In this study, we propose ESPRES, a system that adopts blockchain technology to prevent fraudulent behavior in the process of returns and exchanges with the smart contract and multi-attribute decision-support method to help consumers choose a suitable payment program. A practical implication of this study is that by adopting blockchain technology, a great amount of manpower used on determining whether each return or exchange is fraudulent can be reduced since merchants can check the product ownership. In addition, due to the fact that the footprint of goods cannot be forged, it can also prevent counterfeit or parallel imports of goods. View Full-Text
Keywords: reverse logistics; return fraud prevention; blockchain; ethereum; e-commerce; omnichannel logistics reverse logistics; return fraud prevention; blockchain; ethereum; e-commerce; omnichannel logistics
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MDPI and ACS Style

Shih, D.-H.; Huang, F.-C.; Chieh, C.-Y.; Shih, M.-H.; Wu, T.-W. Preventing Return Fraud in Reverse Logistics—A Case Study of ESPRES Solution by Ethereum. J. Theor. Appl. Electron. Commer. Res. 2021, 16, 2170-2191. https://doi.org/10.3390/jtaer16060121

AMA Style

Shih D-H, Huang F-C, Chieh C-Y, Shih M-H, Wu T-W. Preventing Return Fraud in Reverse Logistics—A Case Study of ESPRES Solution by Ethereum. Journal of Theoretical and Applied Electronic Commerce Research. 2021; 16(6):2170-2191. https://doi.org/10.3390/jtaer16060121

Chicago/Turabian Style

Shih, Dong-Her, Feng-Chuan Huang, Chia-Yi Chieh, Ming-Hung Shih, and Ting-Wei Wu. 2021. "Preventing Return Fraud in Reverse Logistics—A Case Study of ESPRES Solution by Ethereum" Journal of Theoretical and Applied Electronic Commerce Research 16, no. 6: 2170-2191. https://doi.org/10.3390/jtaer16060121

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