Mumbai: Indian e-commerce and quick-commerce platforms are losing an estimated ₹5,000 crore ($550–$600 million) annually due to poor product data quality, according to a first-of-its-kind industry study unveiled by GS1 India.
Titled “Uncovering the Hidden Cost of Poor Product Data in Indian E-Commerce,” the report was launched at the GS1 India Forum 2026 in Mumbai. Developed in collaboration with Kanvic Consulting, the study presents one of the most comprehensive economic assessments of product data governance across India’s digital commerce ecosystem.
The findings estimate nearly ₹2,000 crore in gross margin erosion and approximately ₹1,900 crore in return-related costs, underscoring systemic financial exposure across the value chain. The analysis is based on a top-down economic model anchored in India’s 2025 e-retail GMV, supported by SKU-level analysis and extensive industry interviews.
The report highlights that inconsistent, incomplete, and inaccurate product information—ranging from missing attributes and incorrect images to faulty logistics data and compliance disclosures—directly affects product discoverability, conversion rates, fulfilment efficiency, regulatory adherence, and customer satisfaction.
Category-level insights reveal 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 show strong margin sensitivity to data inaccuracies, and healthcare carries elevated compliance risks despite operating at a smaller scale.
The study also underscores the growing influence of customer ratings and reviews, noting 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 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 report calls for coordinated ecosystem action. It recommends that brands treat product data as strategic infrastructure, marketplaces shift from reactive enforcement to proactive enablement through validation mechanisms and standardisation, and regulators align compliance frameworks with interoperable global standards and common product identification systems.
Held under the theme “The Next Wave: Agile, Circular & Data-driven,” the GS1 India Forum 2026 brought together senior leaders from retail, healthcare, pharmaceuticals, agriculture and supply chain sectors. 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 report, GS1 India positions product data governance as a foundational pillar for the next phase of India’s digital commerce growth—shifting the industry conversation from operational accuracy to measurable economic impact, competitiveness and long-term sustainability.
