GS1 India study flags ₹5,000 Crore data loss risk

GS1 India has released a landmark industry study estimating that poor product data quality is costing India’s e-commerce and quick commerce ecosystem approximately ₹5,000 crore in annual revenue.

Titled “Uncovering the Hidden Cost of Poor Product Data in Indian E-Commerce,” the report was unveiled at the GS1 India Forum 2026 in Mumbai. Developed in collaboration with Kanvic Consulting, the study is among the first in India to quantify the systemic financial exposure linked to inconsistent, incomplete and inaccurate product information across digital commerce platforms.

According to the findings, weak product data governance is not merely an operational inefficiency but a significant economic risk. Beyond the ₹5,000 crore estimated annual revenue loss, the report highlights approximately ₹2,000 crore in gross margin erosion and nearly ₹1,900 crore in return-related costs. These losses stem from gaps in product attributes, images, descriptions, logistics specifications and compliance disclosures, all of which directly influence discoverability, conversion rates, fulfilment accuracy and regulatory adherence.

The analysis is based on a top-down economic model anchored in India’s 2025 e-retail gross merchandise value (GMV), supplemented by SKU-level assessments and industry consultations. It concludes that product data inconsistencies represent ecosystem-wide challenges rather than isolated brand or marketplace issues.

Category-level insights indicate that FMCG and Food contribute the largest absolute margin impact due to their scale, while Fashion Apparel & Accessories show elevated return-related costs. Beauty & Personal Care categories demonstrate sensitivity to margin erosion, whereas Healthcare, though comparatively smaller in scale, carries heightened compliance risks. The study also underscores the growing influence of ratings and reviews, noting that inaccurate product information can erode consumer trust and weaken long-term demand.

Speaking at the launch, S. Swaminathan, CEO of GS1 India, emphasised that as Indian industries accelerate digital adoption, trusted data and interoperable standards are becoming foundational to efficient value chains. He highlighted the role of globally aligned identification and traceability standards in strengthening transparency, compliance and operational resilience.

Deepak Sharma, CEO of Kanvic Consulting, added that high-quality product data must be viewed as strategic infrastructure rather than an operational afterthought, enabling revenue recovery, improved customer experience and scalable digital growth.

Held under the theme “The Next Wave: Agile, Circular & Data-driven,” GS1 India Forum 2026 convened industry leaders across retail, healthcare, pharmaceuticals and agriculture to discuss digital transformation, artificial intelligence, next-generation barcodes and smart packaging solutions aimed at building future-ready supply chains.