• The report estimates around ₹2,000 crore in gross margin erosion and nearly ₹1,900 crore in return-related costs, highlighting the systemic financial exposure caused by weak product data governance.
• The findings also underline the growing importance of customer ratings and reviews, noting that inaccurate product information weakens consumer trust and long-term demand.

GS1 India has unveiled a first-of-its-kind industry study quantifying the economic impact of poor product data quality in India’s fast-growing e-commerce ecosystem. Titled “Uncovering the Hidden Cost of Poor Product Data in Indian E-Commerce,” the report estimates that inconsistent, incomplete, and inaccurate product information is leading to approximately ₹5,000 crore in annual revenue losses across India’s e-commerce and quick-commerce landscape.

Launched at the GS1 India Forum 2026 in Mumbai, the study developed in collaboration with Kanvic Consulting presents one of the most comprehensive economic assessments of product data governance in the country’s digital commerce sector.

The findings reveal that poor product data quality results in nearly ₹2,000 crore in gross margin erosion and approximately ₹1,900 crore in return-related costs, highlighting significant financial exposure across the value chain. Based on a top-down economic model anchored in India’s 2025 e-retail GMV, supported by SKU-level analysis and industry interviews, the report identifies systemic gaps rather than isolated operational lapses.

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:

• FMCG and Food contribute the largest absolute margin impact due to high transaction volumes.
• Fashion Apparel & Accessories account for disproportionately high return-related costs.
• Beauty & Personal Care categories demonstrate strong margin sensitivity to data inaccuracies.
• Healthcare carries elevated compliance risks despite a relatively smaller scale.
  

The report also underscores the increasing influence of customer ratings and reviews, noting that inaccurate product information erodes consumer trust, weakens brand credibility, and impacts long-term demand.

Speaking on the findings, S Swaminathan, CEO, GS1 India, emphasised that as Indian industries accelerate digital adoption, trusted and standardised data is no longer optional.

“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, CEO, Kanvic Consulting.

The study calls for coordinated ecosystem action. It recommends 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.

The report was formally unveiled during GS1 India Forum 2026, held under the theme “The Next Wave: Agile, Circular & Data-driven.” The forum convened senior leaders from retail, healthcare, pharmaceuticals, agriculture, and supply chain sectors to deliberate on artificial intelligence, next-generation barcodes, traceability, smart packaging, and digital transformation.

The inaugural session featured keynote and special addresses from industry leaders including Jeyandran Venugopal, President & CEO, Reliance Retail Ventures; Ravi Kapoor, Partner and Lead – Retail & Consumer Sector, PwC India; and N. Dayasindhu, Co-founder & CEO, Itihaasa Research & Digital.

With this study, GS1 India positions product data governance as a foundational pillar for the next phase of India’s digital commerce growth—moving the conversation beyond operational accuracy to economic impact, competitiveness, and long-term sustainability.

About GS1 India

https://www.linkedin.com/company/gs1india

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GS1 India is affiliated to the global organisation GS1 and is responsible for driving the adoption of GS1 Standards in India. Established in 1996, set up by the Ministry of Commerce and Industry along with CII, FICCI, ASSOCHAM, BIS, APEDA, IMC, FIEO, IIP, and Spices Board India. It works with industry and government stakeholders to enable trusted data, traceability, and interoperability across supply chains through globally aligned, technology‑driven solutions. These include product identification standards, barcode and GS1 Digital Link QR code services, traceability frameworks, and data platforms.   

By ensuring every product carries a unique and verifiable identity, GS1 India supports businesses in building transparent supply chains and advancing digital transformation across sectors. 

About Kanvic Consulting 

Kanvic Consulting is a strategy and management consulting firm that partners with organisations to unlock growth, improve profitability, and drive execution excellence across sectors including consumer goods, retail, and industrials.