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Abstract
The rapid growth of e-commerce has made online retail consumers' primary channel, yet it has also driven rising merchandise return rates, a challenge that demands robust returns logistics infrastructure, and streamlined return processing is now essential for platforms seeking to sustain customer satisfaction and competitive positioning, particularly in China's expanding marketplace. This study examines Taobao, China's leading e-commerce platform, analyzing its competitive advantages and operational challenges in returns logistics management. Using a case study approach supported by a literature review, performance is evaluated through multiple key indicators measuring policy effectiveness and system efficiency. Findings reveal that Taobao has built a comprehensive returns infrastructure through transparent regulatory frameworks and systematized procedures, while also identifying areas requiring improvement. Targeted optimization strategies are proposed accordingly. These insights offer foundational guidance for other platforms developing effective, culturally adapted return services, supporting sustainable growth across China's e-commerce sector.
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