How to Handle RTO in Indian Ecommerce Business

Reducing RTO in e-commerce stores has been one of the most underrated and unspoken problems in the industry. The problem has been bogging sellers down for many years now, yet nobody understood the gravity of it. 

Many Of Indian Customers misuse the service of Cash On Delivery. Actually RTO or RTS is return to seller or origin, that means COD orders which might have returned without delivery or rejected upon delivery. While its fun for a lot of people to simply make a COD order and then refuse to accept it. The real burden fell on the shoulder of a small seller who is trying to make a living.

The Actual Losses:

  • Forward Shipping Costs
  • Reverse Shipping Costs
  • Cash Handling Costs (Often)
  • Increased probability of damage to Fragile Items
  • Packaging Loses
  • Blocked Inventory
  • Operational Cost

How to Overcome?

No doubt, COD has contributed toward the growth of e-commerce in India. Certainly, it boosted the order volumes. Besides, it is a huge hit among buyers. As a result, more than 50% of their orders were returned to origin! This is very serious problem than your thought. Let’s see what you can do as a ecommerce businessman in India.

  1. Choose a good Payment Gateway like Razorpay & so on..
  2. Give a good discount to your customers if they only pay on online.
  3. Charge a higher value for COD charges from your customers.
  4. Decide a calculative product cost to handle the RTO. (Example: If Product Sourcing Cost is = 100, then Selling Cost Should be= 100(Product cost)+50(RTO Adjustment Cost)+80(Shipping Cost)+70(Ad Cost)+Your Margin — {100+50+80+70+100=400} — So that, You Can Sell this product at R.S. 400/-
  5. Keep Your Advertisement Cost Lower with Good enough Frameworks & strategies.
  6. You Should verify all of your C.O.D. orders via call. (Verify address & Product amount and confirm the delivery time.)
  7. Must send courier tracking link to your customer via SMS or WhatsApp.
  8. USE a good Courier Service Providers with dedicated customer support, NDR management, Lowest Courier Charges & Less Weight Discrepancy Issue. (i.e. Dash101, Nimbus Post, Pickrr, SellOShip)
  9. Niche Product store is always Better for less RTO results.
  10. Use Good Packaging with a Branding.

You Should follow all the points to secure your ecommerce business. Experts are saying after following them, “RTO ratio has been reduced upto 15%“. More things you can do for your business to Reduce RTOs: Taking Feedback, WhatsApp Support, Post the Real time Images socially etc. etc. etc.