Simplify Your eCommerce RTO Rate With These Strategies

If there's one thing that scares eCommerce sellers across the globe, it is return orders. eCommerce returns can cause a business to lose more money than make profits. It hurts the business in several ways, but very few sellers know how to reduce their return orders and manage them more effectively.

Reason Behind Product Return

The idea is that RTO or return or origin orders are inevitable in eCommerce. There will always be a certain percentage of your orders that your customers are returning. Statistics suggest that as many as 30% of all ordered products are returned to the seller. This number is far greater than the brick-and-mortar stores. Here are a few reasons why customers return products purchased online-

Damaged Products

As many as 20% of the customers returned their products online because they received damaged goods. It might be due to eCommerce shipping failure or carelessness during inventory management, but it can cost you a lot in the long run.

Different Variant

Customers who shop online cannot get the look and feel of the actual product, which is why they read the product descriptions and zoom in on the images. However, when they receive a product that looks different from their selection, they return it. This amounts to 22% of the RTO orders.

Delivering Wrong Item

One of the most popular reasons for returns, accounting for 23% of RTO orders, is the delivery of an incorrect item. If you're neglecting inventory management and not paying attention to order details, there are chances your RTO rate will be higher.

Miscellaneous

35% of the products are returned due to various reasons. These can be unavailability of cash in COD orders, delay in delivery, customers not available to receive the orders, premises closed, and fraudulent orders.

How Return Orders Hurt Your Business?

While it might seem like returns are not that significant for your business, the facts suggest otherwise. According to a recent statistic, for small and medium enterprises, the cost incurred on RTO orders can reach as much as 48% of the business revenue. For this reason, you must adopt the best practices and try to minimize your eCommerce returns. Some of the reasons why you might be receiving a large number of return orders are-

Lack of Inventory Management

Managing your inventory is fundamental to the success of your business. If customers are returning your products, you must ensure the item you're dispatching is in proper condition. A lot of times, inventory gets damaged in the warehouse if it is not attended to for a long time.

Poor Logistics

eCommerce shipping can make or break your business. If you partnered with a bad logistics company just because they offered low shipping rates, it would do more harm and good for your business. Remember that courier partners are untimely responsible for delivering the product, which is a significant order fulfillment step. If things go wrong in this step, you will end up with RTO orders and a bad reputation.

Lack Of Incorrect Product Information

Another popular reason behind a higher RTO rate for your brand can be the lack of adequate information on your website. If you are missing out on crucial details of your product that the customer realizes upon checking the product physically, they might find a reason to return it. For example, if you didn't mention that the water bottle you're selling is not airtight, the customer might return it upon delivery if their requirements were different. Similarly, many apparel sellers forget to mention the fabric of the cloth, due to which customers return orders.

How To Manage Your RTO Orders Efficiently?

While there is nothing you can do to absolutely make your RTO rate 0, you can take steps to minimize it. Reducing even 1% of your RTO orders can reflect in the revenue of your business significantly. 

Choose Your eCommerce Logistics Partner Wisely

The first step to reducing your RTO costs is to choose your eCommerce logistics partner wisely. Don't just look for costs but also consider the functionalities you're being offered. You must look for a platform that helps you ship with multiple courier partners, which are reputed and responsible. Additionally, your eCommerce shipping partner must also provide you with robust customer service.

Streamlining Your Return Process

Another significant thing that can reduce your return costs is a streamlined return process. Ensure your customers have a more straightforward return process so that they are confident enough to make a purchase. Similarly, ensure that you track your eCommerce returns.

Leverage Automation

Automating the return process can reduce a lot of your worries and costs. This way, you will be caught up less in the returns process and focus more on growing your business.

Conclusion

While returns are a part of eCommerce, they don't necessarily have to hurt your business in a significant manner. If you have a clear return policy and a logistics provider like Shyplite, you can automate your returns and continue making profits in your business. We provide RTO to our sellers in a lesser amount of their shipment charge. Shyplite covers 27000+ pincodes in India and 220 countries globally with its 30+ courier services. With the unified platform, you get to make the most of your business while reducing the cost and making your customers happy.