For D2C brands, GoKwik claims to have processed orders totalling $1 billion and minimised returns
- ByStartupStory | November 4, 2022
GoKwik, an e-commerce facilitator, reported processing orders worth over $1 billion thus far while assisting customers in resolving shopping-related concerns and minimising returns.
The network platform, which offers full-stack solutions to D2C brands, marketplaces, and omnichannel e-commerce players, anticipates that by expanding its network and taking care of issues following the sale, such as warehousing, fulfilment, and last-mile delivery, this number will increase fourfold.
“The Indian e-commerce market operates in a distinctive manner. One of the most common payment options is still cash on delivery. However, due to the fact that around 25% to 30% of cash-on-delivery orders are now RTOs, this unusual purchasing behaviour has some distinct issues (return to origin). In addition to affecting sales and profits, RTO causes brands to incur additional expenditures for reverse logistics, according to Chirag Taneja, co-founder and CEO of GoKwik.
RTO is a big source of frustration for online and e-commerce firms. Around 20% of orders are returned, according to data from the entire sector. Return rates for orders placed via the cash-on-delivery method can reach 40%.
The business, which was established in November 2020 by Taneja, Ankush Talwar, and Vivek Bajpai, has collaborated with companies like The Man Company and Neeman’s to increase their conversion rates and profitability. For instance, nearly a year after partnering with e-commerce enabler GoKwik, Neeman’s saw a 30% increase in its conversion rates. Similar to The Man Company, GoKwik reports that prepaid conversions increased while return to origin decreased by up to 20%.
“We are developing solutions to reduce RTO losses at every level of shopping by utilising data science and technology. Many of our merchants have been successful in employing our solutions to lower RTO by up to 20% over the course of 3–4 months. We will keep pursuing our goal of completely eliminating RTO losses, Taneja stated.
In addition, GoKwik claimed that its UPI solutions enable e-commerce companies’ checkout conversion rates, guarantee increased GMV realisation, boost profitability, reduce customer acquisition costs (CAC), and raise delivery rates.
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