Abstract: The pricing problem for a supply chain system composed of a supplier and one online retailer under E-commerce environment is discussed. Two consumer returns processing modes are considered: processing returns by the manufacturer (M-mode) or by the retailer (R-mode). Based on game theory, the optimal price, the optimal return price, and optimal profits of the supply chain are analyzed. The difference of two modes is compared with numerical simulation. Results show that R-mode is better than Mmode under E-commerce environment. By the use of revenue-and-expense sharing contracts, the coordination of supply chain about consumer returns can be achieved and enhance supply chain profit and customer utility.