The rise of e-commerce has redefined logistics, with reverse logistics emerging as a crucial component for operational efficiency, sustainability, and customer satisfaction. Reverse logistics contributes significantly to sustainability by facilitating waste reduction, resource recovery, and environmental stewardship. This research addresses the gap in understanding the dual role of reverse logistics in achieving sustainability while enhancing customer satisfaction and loyalty. Using a quantitative research design, data were collected from 245 respondents through a structured survey. Factor analysis identified two critical dimensions: return process efficiency and sustainable return practices, which together explain 64.23% of the variance in customer satisfaction and loyalty. Findings reveal that efficient reverse logistics systems enhance customer satisfaction through seamless returns, contributing 58.82% to overall satisfaction. Sustainable practices, such as reusable packaging and waste minimization, significantly bolster loyalty by aligning with growing consumer demand for eco-friendly initiatives. Additionally, eco-friendly practices such as reusable packaging and waste minimization significantly impact consumer perceptions, aligning reverse logistics with corporate social responsibility goals. The results provide actionable insights for businesses to optimize reverse logistics systems, highlighting their role in achieving a sustainable competitive advantage, offering valuable implications for e-commerce platforms, logistics providers, and policymakers.