In our previous article, we discussed how RTO (Return to Origin) affects a business and tricks different merchants are adopting to try and tame it. Just to recap, merchants are trying out the following methods to reduce the RTO problem:
- Incentivizing online payment with coupons and offers
- Keeping a Minimum Purchase Limit for availing COD
- Charging for CoD
- Sanitizing contact info and addresses
- Detecting fake information to weed out potential fraudulent orders
- Disabling CoD on-site
Logisy is a SaaS platform that helps merchants reduce RTO losses by providing a battery of tools to automate all common checks and tasks mentioned above and more.
So, how does Logisy work?
Let us very briefly see how it can help curb RTO orders.
- Flag Risky Orders
Logisy checks each order for issues based on more than 200 parameters. It does that to determine a customer’s “delivery worthiness”. Logisy harnesses the power of machine learning algorithms to analyze the order data along with the behavior of the buyer. The flags and score of each order are made available for you to see on your Logisy dashboard. Based on this information, you can decide whether or not to process an order.
- Detect Human Error
Often, RTOs occur due to incorrect information provided by the customer. Logisy is programmed to check the accuracy and validity of shipping details such as addresses, phone numbers, pin, etc. as well as order details such as item quantity and size, and flags orders with any discrepancy in them.
- Monitor Shipping Companies
Logisy scores shipping companies based on their performances and suggests the best shipping company for an order.
- Automated Non-Delivery Reports
Often, orders are RTO’d due to negligence or errors by the shipping company. But there’s no way you can find out what actually happened as you rely on the information provided by the shipping company, which may not always be true. Logisy provides you the buyer’s perspective of the delivery process by automatically contacting them via email, SMS and/or WhatsApp to gather feedback and complaints on delivery events.
- Enhance Website Traffic
One of the best ways to reduce RTO is by keeping away fraudsters and malicious buyers from your e-commerce shop. Although this sounds daunting, Logisy achieves this by targeting your ads to people who are similar to your most loyal customers. Logisy leverages data and behavioral patterns to differentiate high-risk customers from credible ones. This can help you reduce your Customer Acquisition Cost (CAC) by allocating your marketing budget on attracting credible customers through ad optimization, driving healthy traffic to your site.
- Convert COD Users to Paid Users
When placing a COD order, the customer has zero stakes in the purchase. They can simply refuse to accept the order without spending a single penny, whereas, for you, a return would incur a loss. So, an effective way to minimize this is to convert the COD order to paid order. Logisy lets you send offers via email, SMS and/or WhatsApp to maximize the chances of CoD to paid conversion. You, as a merchant, can customize the offers you wish to grant to your customers. For example, it can be a pre-set percentage discount or a flat discount for a minimum order value.
Logisy uses the latest machine learning algorithms to determine which cities work best for your store. It also provides you a platform to discover new markets.
Schedule a Demo
I hope that the solutions mentioned above connect with your thought-process as a merchant. Why not give Logisy a try? If you are still in doubt, please reach out to us for a free consultation session.
Our e-commerce partners have already been using Logisy with a 15–25% reduction in their RTOs. Have a look at this graph below of a Fashion Brand named Calenvie.
They have spotted a reduction in RTO from 5k to less than 2.5k after using Logisy.