Fashion Legacy Brand Reduces RTO By 45% Using GoKwik
ABOUT
A legacy retail brand focusing mainly on fast moving and street fashion started its online vertical to reach newer and wider audience. The brand caters to both men and women and started scaling rapidly.
HQ
India
INDUSTRY
Fashion
About The Legacy Brand
A legacy retail brand focusing mainly on fast moving and street fashion started its online vertical to reach newer and wider audience. The brand caters to both men and women and started scaling rapidly.
The Problem Statement
65-70% of orders were placed via Cash on Delivery for the brand. CoD while convenient for the shopper, poses various issues of RTO, cash handling charges etc. RTO is a phenomenon specific to the Indian e-commerce industry. The brand was facing RTO rates to the tune of 40%. In certain categories, it was as high as 50%.
This was hurting the overall PnL as they were spending almost INR 275 per order on marketing spends along with INR 100-120 for forward and reverse logistics costs. Due to high RTO, the brand was also experiencing very low successful delivery rates.
Solution: The Solution
100% RTO Protection
RTO really hurts the profitability of any e-retail business. GoKwik provided 100% RTO protection from Day 1 and underwrote the risk of RTO.
RTO is now a headache of the past for the brand due to the success based model of GoKwik.
Data Analysis & Custom Modelling
Post go live, Clear patterns GoKwik analysed the brand s RTO behaviour in depth. Clear patterns on how RTO varies across categories, geographies, demographics and customer profiles were identified. Using 200+ parameters from customer and brand historic data as well as real time browsing parametres of the user, GoKwik created a custom ML model suited specifically for their business needs. The model stack ranked the orders in terms of risk buckets – very high, high, medium and no-risk.
Dynamic CoD using GoKwik’s Real Time RTO API
The custom ML model was integrated into the checkout process using the RTO API.
With blocking just 4% of orders for CoD, RTO reduced by 10%. Also 20% of these users still went ahead using prepaid payment options.
Post Order Interventions
For orders in the medium risk bucket, a range of interventions were implemented post order placement to ensure conversion rates and GMV are not adversely impacted.
Overall, these interventions helped in ensuring a seamless delivery process, reduced RTO and higher
delivery rates.
The Result
Enabling a real time dynamic checkout solution for any e-commerce business is extremely complicated and GoKwik was entrusted with this responsibility. Within 2 months of going live, the positive impact created was massive.
- RTO rate reduced from 40% to 21%, marking a decrease of 45%
- successful delivery rate increased by 20%
The Future Promise
GoKwik’s endeavour is to ensure that the brand keeps scaling without the hassles of RTO. By working closely with the brand, GoKwik will continue to innovate ensure higher GMV realisation. Seeing these results, multiple legacy brands moving online are currently working with GoKwik.
If you as a business owner and want to be protected from risks such as RTO and at the same time provide a delightful experience to your shoppers, do hit us up.
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