GS1 India Releases Landmark Study Estimating ₹5,000 crore Annual Revenue Loss due to Poor Product Data

GS1 India’s biennial flagship event, GS1 India Forum 2026, witnessed the launch of a first-of-its-kind industry study quantifying the economic cost of poor product data quality in India’s e-commerce ecosystem. Titled “Uncovering the Hidden Cost of Poor Product Data in Indian E-Commerce”, the report was released by GS1 India in collaboration with Kanvic Consulting at the Forum held at Holiday Inn, Mumbai.

The study estimates that inconsistent, incomplete and inaccurate product information is resulting in approximately ₹5,000 crore in annual revenue loss across India’s rapidly expanding e-commerce and Q-commerce landscape. In addition, 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. 

Based on a top-down economic model anchored in India’s 2025 e-retail GMV and supported by SKU-level analysis and industry interviews, the report finds that product data quality failures are not isolated issues but ecosystem-wide challenges. Gaps in product attributes, images, descriptions, logistics information and compliance disclosures directly affect product discoverability, conversion rates, fulfilment efficiency, returns and regulatory compliance.

Category-level analysis shows that high-volume segments such as FMCG and Food drive the largest absolute margin impact, while Fashion Apparel & Accessories account for elevated return-related costs. Beauty & Personal Care demonstrates margin sensitivity, and Healthcare carries heightened compliance risk despite smaller scale. The findings also underline the growing importance of customer ratings and reviews, noting that inaccurate product information weakens consumer trust and long-term demand.

Speaking at the launch, S Swaminathan, CEO, GS1 India, said that as Indian industries increasingly adopt digitalisation, the need for trusted data, interoperability and globally aligned standards is becoming critical. He highlighted the role of GS1 standards in enabling traceability, transparency and efficiency across value chains, while supporting compliance and long-term sustainability.

“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 move from reactive enforcement to proactive enablement through standardisation and validation, and regulators align compliance requirements with interoperable data standards and common identification frameworks.

The report was unveiled during the GS1 India Forum 2026, organised around the theme “The Next Wave: Agile, Circular & Data-driven.” The forum brought together senior leaders and functional heads from supply chain, packaging and IT across sectors including retail, healthcare, pharmaceuticals and agriculture to deliberate on artificial intelligence, digital transformation, next-generation barcodes, traceability and smart packaging.

The inaugural session featured a keynote address by Jeyandran Venugopal, President & CEO, Reliance Retail Ventures, along with special addresses by Ravi Kapoor, Partner and Lead – Retail & Consumer Sector, PwC India; N. Dayasindhu, Co-founder & CEO, Itihaasa Research & Digital. Discussions at the forum examined how standards integrated with emerging technologies can strengthen supply chains, enhance interoperability and support data-driven business practices across industries.