The Ebay Factor: The Online Auction Solution to the Riddle of Reverse Logistics (Manuscripts‪)‬

ABSTRACT Cottrill (2003) observed that "reverse logistics is no longer an afterthought, as companies discover gold in the mountains of returned products at the back end of the supply chain" (p. 20). This article examines this proposition, looking at the increased focus on the handling of returned and excess goods and merchandise through reverse logistics operations. The article outlines the dimensions of the returns problem and gives an overview of the concept of reverse logistics, examining the ways that management of the "reverse supply chain" differs markedly from a firm's forward facing operations. The article explores how and why online auctions through eBay are becoming an integral part of leading retail and consumer goods' companies reverse logistics strategies. It offers guidance as to what key questions executives face in developing a proactive strategy for handling returns and excess goods and whether to do so in-house or via third-party providers.