Mumbai: GS1 India has unveiled a first-of-its-kind industry study estimating that India’s e-commerce sector is losing nearly ₹5,000 crore annually due to poor product data quality.
The report highlights how inconsistent, incomplete, and inaccurate product information is significantly impacting revenue, margins, and customer trust across the digital commerce ecosystem.
Titled “Uncovering the Hidden Cost of Poor Product Data in Indian E-Commerce,” the study by GS1 India estimates that weak product data governance is causing approximately ₹5,000 crore in annual revenue losses across India’s e-commerce and quick-commerce landscape.
The findings quantify the economic consequences of inaccurate product listings, logistics information gaps, compliance errors, and inconsistent product attributes.
The study was officially launched at the GS1 India Forum 2026 in Mumbai. Developed in collaboration with Kanvic Consulting, the report presents one of the most comprehensive economic assessments of product data governance in India’s digital commerce sector.
Also Read: Data Privacy Day 2026 Highlights Privacy-By-Design in a Device-Driven Economy
₹2,000 Crore Margin Erosion and ₹1,900 Crore Return Costs
According to the GS1 India study, poor product data quality results in nearly ₹2,000 crore in gross margin erosion and approximately ₹1,900 crore in return-related costs.
The report underscores the systemic financial exposure caused by weak data governance across the value chain.
The analysis is based on a top-down economic model anchored in India’s 2025 e-retail Gross Merchandise Value (GMV), supported by SKU-level analysis and industry interviews.
Rather than identifying isolated operational lapses, the study highlights structural gaps in product data management practices.
The report states that deficiencies in product attributes, images, descriptions, logistics data, and compliance disclosures directly impact:
- Product discoverability
- Conversion rates
- Fulfilment efficiency
- Regulatory adherence
- Customer satisfaction
Category-Level Impact Across Sectors
The GS1 India study provides category-wise insights into how poor product data quality affects different segments of e-commerce:
- 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 show strong margin sensitivity to data inaccuracies.
- Healthcare faces elevated compliance risks despite operating at a relatively smaller scale.
The findings underline that data inaccuracies are not merely operational inefficiencies but carry direct economic and compliance implications.
Impact on Customer Trust and Long-Term Demand
The GS1 India report also highlights the growing importance of customer ratings and reviews in digital commerce. It notes that inaccurate product information weakens consumer trust, erodes brand credibility, and impacts long-term demand.
Speaking on the findings, S. Swaminathan, CEO, GS1 India, emphasised that trusted and standardised data has become essential as Indian industries accelerate digital adoption.
“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.
Also Read: CHINI KUM Raises ₹1 Crore Pre-Seed Funding to Build Zero-Sugar Beverage Platform in India
GS1 India Study: Call for Ecosystem-Wide Action
The GS1 India study calls for coordinated ecosystem action to address systemic product data governance gaps. Key recommendations include:
- Brands should treat product data as strategic infrastructure.
- Marketplaces must move from reactive enforcement to proactive enablement through standardisation and validation mechanisms.
- Regulators should align compliance frameworks with interoperable global standards and common product identification systems.
The report was formally unveiled during the GS1 India Forum 2026, held under the theme “The Next Wave: Agile, Circular & Data-driven.”
The forum brought together senior leaders from retail, healthcare, pharmaceuticals, agriculture, and supply chain sectors to discuss artificial intelligence, next-generation barcodes, traceability, smart packaging, and digital transformation.
The inaugural session featured keynote and special addresses from 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 landmark study, GS1 India positions product data governance as a foundational pillar for the next phase of India’s digital commerce growth – shifting the focus from operational accuracy to measurable economic impact, competitiveness, and long-term sustainability.
