Leveraging platform-based technologies to mitigate product returns in E-commerce: an affordance actualization perspective

Purpose This study investigates how online sellers can leverage platform-based technologies to mitigate product returns through the lens of affordance actualization theory. We conceptualize four categories of platform-based technologies and theorize how their affordances influence consumer perceptions and behaviors, leading to reduced return rates. Design/methodology/approach We develop a research model grounded in affordance actualization theory and test our hypotheses using a unique longitudinal dataset from a leading e-commerce platform. We employ panel data analysis with seller fixed effects and conduct various robustness checks to ensure the reliability of our findings. We also examine the synergistic effects among different platform-based technologies and explore their varying impacts across product types and seller characteristics. Findings The strategic actualization of pricing, marketing, product presentation and customer service technology affordances significantly reduces product return rates. The return-mitigating effects are stronger for low-reputation sellers and high-price, high-complexity products, highlighting the contingent value of technology affordances in managing returns. Besides, we find evidence of synergistic effects among different platform-based technologies, particularly for complex products and less reputable sellers. Originality/value This study extends affordance actualization theory to the e-commerce context and uncovers the mechanisms and boundary conditions for platform-based technologies to mitigate product returns. We contribute to the literature by offering a novel theoretical perspective and granular insights into the role of technology in shaping a critical operational outcome in online retailing.