GoKwik has helped eCommerce brands save over Rs 130 Cr worth of RTO losses in 2023
Brands on the GoKwik network took advantage of the tech interventions to arrest return to origin orders and expand providing COD as a mode of payment across pincodes in deeper parts of India.
Brands on the network of eCommerce enabler GoKwik have saved upto Rs 130 Cr in losses from return to origin orders (RTO) in 2023 so far.
According to data released by GoKwik, direct to customer (D2C) brands on its network benefited from its interventions to arrest RTO occurrences. Brands saved over 16 lac orders from being returned to origin. As a result, they also saved over Rs 24 Cr in reverse logistics cost owing to orders being returned while in transit.
“We are constantly building deep rooted intelligence & interventions that will help brands cater to the cash on delivery loving shoppers while also mitigating RTO losses smartly. Our solutions are constantly committed to solving deep rooted problems of the eCommerce industry at the source while also ensuring we contribute to becoming the eCommerce gateway of India. By seeing success stories of merchants, we are rest assured that we are heading in the right direction” said Chirag Taneja, Co-Founder and CEO, GoKwik.
RTO or return to origin is when undelivered orders are returned before delivery causing a major setback to operations for eCommmerce brands as they add to logistics costs, inventory blockage, loss of true conversions and leaking profitability.
The chances of RTO are significantly higher in cash on delivery (COD) orders than in prepaid orders. GoKwik offers a range of solutions backed by data and analytics that can predict customer behaviour and help sellers prevent RTOs, while ensuring an expansive COD serviceability across regions.
Through GoKwik led interventions, brands also had over 16 lac products readily available to be shipped which would have otherwise been in transit for 20-30 days leading to inventory blockage and damage, data released by GoKwik shows.
Fashion brands saved around INR 15 Cr, electronics brands around INR 61.7 Cr, beauty brands around INR 2.75Cr, and footwear brands around INR 5.5Cr in inventory blockage owing to GoKwik interventions. Moreover, among these categories, electronics saw the highest reduction in COD RTOs with 28%. Fashion brands recorded an 11% drop in COD RTOs, footwear recorded 16.6% drop, and beauty and personal care saw 10%.
Around 40% of the brands in GoKwik network continued to increase their COD share by 16% and reduced COD RTO by up to 18%.
Homegrown consumer electronics brand boAt saw upto 32% drop in RTO rate and a 4X increase in COD gross merchandise value with the help of GoKwik’s interventions. Footwear brand Attitudist also recorded a 15% reduction in RTOs with these interventions. Boult Audio further brought down RTOs by 40% and Fireboltt by 30% respectively.
Many other brands including Swiss Beauty, The Man Company, Neeman’s, Wallmantra, and Lenskart were able to expand their COD serviceability pan India while containing RTO rate.
GoKwik’s smart suite of solutions help brands start COD, expand COD, reduce return to origin and contain return to origin depending on the stage of COD serviceability their brand is in. GoKwik is committed to solving these problems at the source by risk based interventions such as adding extra layers to order completion to avoid RTO, behavioural analysis of the shoppers, risk profiling and placing pre order interventions such as COD captcha, COD confirmation prompts, prepaid discounts and more.
About GoKwik
GoKwik is a data & technology-led enabler, building a full-stack solution suite for eCommerce and D2C brands to help them unlock business growth. Embarked on a mission to democratise the shopping experience, GoKwik enables eCommerce brands to deliver superlative customer experience across the shopping funnel thereby boosting conversion rates and revenue growth. It also solves for other critical pain points of the industry such as COD RTO (Return to Origin) and helps brands manage the RTO problem while offering COD as a payment channel.
With its recent addition of a third product: KwikChat, GoKwik is solving for low ROIs on marketing campaigns through 30+ Whatsapp use cases such as abandoned cart recovery, click-to-WhatsApp ad campaigns & headless checkout. 1 in 3 shoppers is already shopping on the GoKwik network which has helped 500+ brands scale their businesses with higher GMV realisation& profit margins.
It is helmed by Chirag Taneja (Co-Founder and Chief Executive Officer), Vivek Bajpai (Co-Founder and Chief Technology Officer), and Ankush Talwar (Co-Founder and Chief Data Scientist). GoKwik is backed by investors such as Sequoia Capital, Matrix Partners India, RTP Global & Think Investments. GoKwik’s team has deep knowledge in the space of eCommerce with people having previous experience in Flipkart, Razorpay, Swiggy, Myntra, Nykaa, and more. Link – https://www.gokwik.co/
