Efficient logistics management, particularly in the back-end supply chain, is crucial for the success of e-commerce companies. Reverse logistics—which includes product returns, repairs, maintenance, recycling, and dismantling—plays a strategic role in optimizing profitability while aligning with broader sustainability and corporate responsibility goals. This research aims to examine the business impact of reverse supply chain management in India’s e-commerce sector, driven by retail development, government initiatives like “Digital India,” and an expanding internet user base exceeding 400 million. Reverse logistics accounts for approximately 15% of total logistics costs and requires an 8% profit margin for sustainability. A quantitative methodology was adopted, analyzing data from 300 garment and footwear manufacturers across India. The study found that increasing competition from online platforms such as Myntra, Flipkart, and Amazon has led to more aggressive return policies—reducing return window periods but prompting higher investments in reverse logistics capabilities. Findings underscore the need for government intervention and the establishment of robust policy frameworks to mitigate commercial losses faced by local manufacturers. Moreover, integrating advanced technologies can enhance efficiency, reduce operational costs, and sustain profitability. Importantly, reverse logistics also offers opportunities for companies to fulfill their CSR objectives by promoting eco-friendly practices such as recycling and responsible waste management, while also improving consumer trust and brand equity through ethical and sustainable business practices.