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Ansh Kadam
Stealth • 6h
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). 🚀
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