How to detect and prevent RTO fraud

Picture this. You pick a product, make a killer sales page, start your campaign, scale it for 2 weeks, spend 1000s of rupees on meta ads,

And in the end, instead of making a profit, you suffer a huge Loss!

Don’t worry, because today I will tell you the No. 1 reason why most people suffer losses in their ventures— along with a solution!

So, without any further delay, let’s begin.

The prime reason why people suffer losses is because of the term called RTO, which stands for Return to Origin.

RTO happens when you ship out your order to the customer, but the customer doesn’t accept it from the delivery person at the doorstep.

And due to this, you have to bear the extra delivery cost, while also not selling the product.

And hence, today I will give you 3 actionable steps you can implement today to reduce RTO and significantly boost your profits.

And to solve the issue of RTO, we must have a basic understanding of it.

Basics of RTO

Due to the increase in the cash-on-delivery feature, customers can now make orders on your website without actually paying for it in advance.

And hence, when the order reaches them, there are high chances that they will make up their mind to reject it.

Recently, a report was conducted on the various reasons for RTO, and here are some of them;

Wrong address, customer refusal, rescheduling, deliveries consigning unavailable, etc.

And with that, we come to NDR.

When your order automatically becomes an RTO, it first becomes an NDR, i.e., Non-delivery report.

This is where your shipping services, like ShipRocket, will inform you that the customer has refused delivery.And the reason can be any of the ones stated above.

After this, the shipping service will automatically try 2-3 reattempts to deliver your order, simply to prevent RTO, but after that, if the order is still not delivered, then the product is delivered back to your warehouse.

Delivery Rate:

• Now, the core of any good money-making dropshipping business is the right product and good creatives.

But, in the indian market, there’s one more thing which is equally important in the Indian Market, i.e., delivery rate.

Consider it as the opposite of RTO.

And if you correctly know how to calculate the delivery rate for your business, not only will you drive profits,

But it would also be able to spot where your business is lacking, and substantially increase your profits.

And one of the obvious ways is that because RTO is the opposite of delivery rate, to increase the delivery rate, you just need to reduce RTO.

3 ways to reduce RTO:

Here are the 3 ultimate steps for reducing RTOs;

Step #1: Stop using COD forms

Everybody uses COD forms these days, but the harsh truth it, as everybody can just place any order at any time, it simply gives you a bad address quality.

Which results in a high RTO, and in that case, you shall replace it with a tool called OneClick Checkout.

There are various reasons to do so; the first is that it filters out all the non-serious buyers,

Most of the information in it is pre-filled, so you don’t have to waste much time utilizing its services, and hence reducing the friction in the checkout process.

It also gives you a prepaid discount, which would further incentivize the customer to make a prepaid order.

STEP 2: Order and address confirmation (manually)

This step includes using manual calling to get an order on your website, so just simply call up every customer, tell them about the product they were interested in, and ask, Can I confirm your order?

Even though it might feel hard selling, pushy salesy tactics, the truth is people still value human connection,

So, somebody calling them to ask about the order increases trust, and ultimately, your delivery rate will boost, to say the least.

And the worst they can say is NO, which is still better, as you are sure that you don’t have to ship out the order.

Step #3: STOP!

Even after doing all this, if you still receive high RTO, there’s only one more thing left to do.

Stop your advertising.

And by that, I don't mean completely stopping it, just stop in high RTO pin codes.

Just extract a list of high RTO pin codes from all your order data and put them in a Google Doc, simply copy them and head over to your Facebook Ads Manager, scroll down to the locations area,

Click edit and you’ll change this include to add exclusions, and then simply just paste all of the pin codes.

The only thing you need to keep in mind is that your ad sets will reoptimize when you do this, so always try to do them at the start.

READ MORE: Abandoned Cart Recovery Guide Using WhatsApp and Email Automation

Final Thoughts:

I hope you were able to understand everything about RTO and how it operates, especially in the Indian Market.

And further, the importance of your metrics, and how to tactfully use them to reduce RTO.

Check out this blog to learn further about RTO. How To Reduce RTO In E-Commerce In India? Proven Methods

I hope this helped! 

Until then, Happy Digital Learning 😍