RTO levies a significant cost burden on eCommerce businesses.

Return to origin or RTO is a commonly heard term in the e-commerce world. RTO refers to the non deliverability of a package to the buyer and its return to the sellers address. There are various reasons why a package is shipped back to the seller. This causes extra expenditure for the e-commerce business. No matter what the number of orders or the value orders you derive, getting your RTO’s in check is of major importance. For some e-commerce market players, this RTO’s can go upto 30% if not kept in check.

This situation can be tackled in three levels:

1) Marketing level:

RTO at marketing level should be tackled before an order is received. For eg: by targeting audience based on purchasing capacity and in the 1 and 2 tier cities and by running discounts on prepaid orders.

2) Operational level:

The operational level comes in force as soon as an order is received. For eg. Checking the customer information like their address and pin code and making calls to the customer in order to qualify the order and dispatch them.

3) Shipping/transportation level:

Shipping is tackled once the order is dispatched from the warehouse and handed over to the courier partner. For eg: giving the customer the entire tracking details and updates of their package. And providing them with the contact number of the delivery boy at time of delivery.

The following are some of our clients who have a paved way of tackling their RTOs. These clients vary from a range of order values, the scale of marketing and Industries.
We also have perspectives from the marketing experts and shipping industry for tackling RTO. 

 

1. How Dr. Vaidya's tackle RTO through Human interaction.

Know how Dr. Vaidya's an Indian based International Ayurveda brand with a low average order value and high number of orders deal with factors engaging increased RTO rates and how to effectively handle more pre- paid orders and ensuring low rates of RTO.

  • Making frequent calls to the customer from the time order is placed.
  •  Pushing in the courier partners to reduce RTO rates.
  • Building in trust amongst the customers for digital payment.
RTO-Series-1

 

2. How customer segmentation helps Aurelia/W reduce RTO.

Aurelia and W, the top women clothing brand with high volume of sales tackles RTO's  in the form of payment gateway, processing order and average value order by taking the following steps.

  • Right cataloug information has to be given to the customer.
  • The customer should be aware of expected delivery time
  •  Providing more COD options at delivery.
    RTO_v2_aurelia and w

 


3. Adyogi suggests major efforts than can reduce RTO.

Adyogi, an mobile/digital marketing space for past four years for its clients, ranging from top corporates to small medium Businesses in various sectors gives us measures that can be taken to reduce RTO percentage. 

  • Incomplete address or wrong address of the customer.
  • Impulsive purchase without any intent
  • Non availiability of customers during delivery.
  • Efforts such as avoiding PAN India campaign and discount on pre paid orders.
RTO_v3_shubam

 


4. How Fancy Pants hands on approach reduces RTO rates.

Fancy pants, a fashion brand is on a mission to make you passionate about looking great with a high average price of products. Know the processes followed at Fancy Pants to effectively tackle RTO.

  • Confirmation calls to the customers
  • Pin code surveying to know the delivery cost going to occur.
  • Customer history for transactional data.
  •  Reducing the volumetric weight of the products to crub shipping cost.
RTO_v4_fancypants1

 


 

5. How Shri and Sam qualifies order to reduce RTO.

Shri and Sam, a seamless fusion of Indian tradition and western transcendence and a wide variety of products in stainless steel ware.  Know the rules Shri and Sam abides by when it comes to RTO.

  • Make qualifying calls before dispatch to avoid fraudulent order.
  •  Inclusion of COD for increased orders.
RTO_v5_shriandsam

 


6. How Shopify helps Mulmul reduce RTO rates.

Mulmul, a clohing brand redefining affordable luxury by crafting elegant silhouettes with a high average value order. Mulmul swears by a few mantras when it comes to lower their RTO rates.

  • Keeping the delivery time as low as possible.
  • Maintaining the warehouse efficiently.
  • Choosing the right delivery partner.
  • Making one on one calls to understand the customers needs.
RTO_v6_mulmul

 

7. Factors ensured by Vamaship to reduce RTO

Vamaship is a logistics marketplace for businesses, facilitating shipping to over 20,000 pin codes in India and over 200 countries to and from India. Know the challenges an Ecomerce faces inorder to reduce RTO level.

  • 3 major factors that go behind RTO.
  • Lack of proper technical management.
  • Rescheduling the shipment.
  • Identifying the tracking events of the order.
  • Implementing tools and process and mechanism for validation of an order.
    RTO_v7_vamaship