Founders explore the root cause of Return to Origin rates at D2C Carwaan – Surat Edition [Video]

If there is one issue that all D2C e-commerce companies face, it is Return to Origin (RTO). According to GoKwik’s internal data, the Indian e-commerce industry witnesses an average RTO rate of about 20-25%. Depending on the industry, location, or the type of product these numbers can skyrocket to a staggering 40%.

RTO happens for a variety of reasons – customers who place Cash on Delivery (COD) orders may decline the package, bad faith actors may place fraudulent orders, buyers may offer incorrect details and the package or product may be damaged in transit. In all these scenarios, it becomes the brand’s responsibility to bear the costs to rectify the situation. Unfortunately, high RTO rates eat away business profit and impact the brand’s reputation. It is imperative that e-commerce companies – especially small to medium sized D2C businesses – find a way to cut down on RTO rates.

The trials …