Poor product data quality results in nearly Rs 2,000 crore in gross margin erosion and approximately Rs 1,900 crore in return-related costs
Inconsistent, incomplete and inaccurate product information is leading to approximately Rs 5,000 crore in annual revenue losses across India’s ecommerce and quick-commerce landscape, a study by GS1 India revealed.
The findings reveal that poor product data quality results in nearly Rs 2,000 crore in gross margin erosion and approximately Rs 1,900 crore in return-related costs, highlighting significant financial exposure across the value chain. The report is based on a top-down economic model anchored in India’s 2025 e-retail GMV, supported by SKU-level analysis and industry interviews.
According to the study, deficiencies in product attributes, images, descriptions, logistics data, and compliance disclosures directly affect discoverability, conversion rates, fulfilment efficiency, regulatory adherence and customer satisfaction. Category-level analysis shows that FMCG and food contribute the largest absolute margin impact due to high transaction volumes, while fashion apparel and accessories account for disproportionately high return-related costs.
Beauty and personal care categories demonstrate strong margin sensitivity to data inaccuracies and healthcare carries elevated compliance risks despite a relatively smaller scale.
“High-quality product data is no longer an operational detail, it is a strategic growth lever for India’s digital commerce ecosystem. By strengthening data governance and standardisation across the value chain, businesses can unlock meaningful revenue, improve customer trust and build more resilient, scalable commerce models,” said Deepak Sharma, Chief Executive Officer, Kanvic Consulting.
The study called for coordinated ecosystem action. It recommended that brands treat product data as strategic infrastructure, marketplaces move from reactive enforcement to proactive enablement through standardisation and validation mechanisms and regulators align compliance frameworks with interoperable global standards and common product identification systems.
According to the study, deficiencies in product attributes, images, descriptions, logistics data and compliance disclosures directly affect discoverability, conversion rates, fulfilment efficiency, regulatory adherence and customer satisfaction.
