<p>An exponential increase in demand fulfillment through the e-commerce platform has forced many firms to switch to digital channels from traditional brick-and-mortar systems. With increased demand from online websites, issues about Return Management (RM), Reverse Logistics (RL), packaging wastes, disposition, and alternate use of wastes have become an area of concern. A well-developed RL network through the practices of effective return handling, reuse, and recycling could address these issues and help minimize wastage, thereby creating a sustainable environment. A systematic literature review is conducted, and 240 papers were reviewed and analyzed pertaining to RM and RL domains of online markets. The findings reveal that the research on e-commerce focusing on returns and RL practices for sustainable development is in the growth stage. Several aspects and features of reverse supply chains, like return policy, return handling process, return costs, and RL network design, have been investigated using different qualitative and quantitative methodologies and theoretical foundations. Further, the RL network design is segregated into food, apparel, and packaging waste sections. The basis is that these product types require different treatments due to varying shelf life, packaging, and responsiveness. The study aims to draw the research gap and bring out challenges and opportunities in the sustainable RL domain of e-commerce faced by academics and industries. The study’s findings will help the practitioners understand the key areas to focus on for designing an efficient and sustainable RL system and the vital areas to focus on while developing the return process.</p>