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Product-as-a-Service (PaaS) has the potential to enable closed-loop supply chains (CLSC) and decrease environmental impact, but it is only applied on a small scale. The purpose of this paper is to explore and develop a framework of challenges and corresponding mitigations encountered by Business-to-Consumer (B2C) retailers when transitioning to PaaS.

Data collection drew on a qualitative interview study with two industry experts and four PaaS B2C retailers from different Dutch industries.

A framework was developed linking 26 challenges in eight clusters—financial, product-related, supply chain-related, consumer-related, human resources, research and development/technology, regulatory and industry-related—to 24 mitigations. The mitigations were elaborated, and theoretical insights for matching challenges with mitigations were provided.

This study expands PaaS literature to the generally under-researched retail context. It contributes to CLSC literature by applying it to a less-studied context, thereby revealing many supply chain-related challenges and mitigations encountered by B2C retailers.

The framework offers practical guidance to retail managers for overcoming or preventing challenges in PaaS, in their endeavours toward adopting environmentally sustainable practices.

The study creates awareness about environmental sustainability and the potential to reduce societal impact, in which a PaaS-enabled CLSC is one step.

Studying PaaS and CLSC in a retail context is timely and novel.