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Ansh Kadam

Founder & CEO at Bui... • 4m

Indian E-commerce is unlike any other in the world, and here’s why: While most western countries like the US, UK, and Canada offer close to no Cash on Delivery (COD), and countries like China and Brazil see just 15%+ of orders via COD… A staggering 60% of online orders in India are COD. And that brings a massive problem that most people don’t talk about, RTO (Return to Origin) shipments. Here’s how bad it is: ❌ 20%–30% of COD orders get returned to the seller. 🚨 For new brands, this can be as high as 40%! Unlike other countries, where people order only when they want something, Indian buyers order first, then keep searching for better deals. Now, here’s why this is a nightmare for brands: If a seller pays ₹50 to ship an order, they pay another ₹50 for the return. If the customer was acquired via ads, 40%–80% of the order value is also wasted as that much is spent on ads. So what’s the solution? Stopping COD means orders drop instantly. Accepting COD means massive losses. 🚀 Here’s how smart brands are reducing RTO and protecting profits: 1️⃣ Incentivize Prepaid Orders – Offer discounts or cashback for prepaid payments. Even a small 5% discount can shift customers. 2️⃣ AI-based COD Risk Filtering – Use tools that identify risky COD orders based on behavior patterns. 3️⃣ Confirm High-Value COD Orders – Call or use OTP verification to ensure intent before shipping. 4️⃣ Faster Deliveries = Lower RTO – 1-2 day delivery reduces the chance of cancellations. 5️⃣ Better Product Pages & Reviews – More info, better photos, and clear pricing reduce customer second thoughts. E-commerce in India isn’t just about selling, it’s about smart execution. Now the question is: Are you optimizing for lower RTO or just absorbing the losses? Let me know your thoughts in the comments.👇 For more such insights on business, startups, and growth, subscribe to our newsletter (link in the comment). 🚀

4 Replies

Replies (4)

Sajin
•

Foundation • 4m

Scenario is much worse on Meesho. Customers order just to see the product and retuns it for free. Sellers can expect around 80% returns, with around ₹150 return shipping fees paid by the seller. Most sellers find themselves to be at heavy loss on Meesho, where the only way to get a sale is by running ads

1 Reply

Anonymous 1

Hey I am on Medial • 4m

Wow but won't think about fixing logistics before blaming customers na? Delayed deliveries, bad courier partners, and misleading product pages make people reject orders. Brands cry about COD losses but rarely take responsibility for their own mess-ups.

Ansh Kadam

Founder & CEO at Bui... • 4m

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