Reduce RTO in Indian Dropshipping: Master The Business GAME

In this blog post, we will discuss about how you can reduce your RTO in Indian Dropshipping or in Indian Ecommerce.

I guarantee you! Today you are going to learn something more valuable.

Here is the overall content:

Let's get started with the strategies.

What is RTO in Indian Dropshipping/Ecommerce?

RTO means Return-To-Origin. In which whenever a customer refuses to accept the order or delivery partner fails to deliver the order to exact location. And at the end the product have to ship back to their warehouse. This is called RTO.

Now! Let's get to the point!

How much RTO Your Business Can Handle?

In case of Prepaid orders, you can get 100% Delivery Ratio in Indian Dropshipping or Ecommerce business because that's where the customer is serious about their product. 

In case of Cash on delivery, your successful delivery rate can goes upto maxium 90% when you have all the confirmed addresses of the customers. But, still there is a probability of 10% where customer don't accept the product or give wrong address.

Why Reducing RTO is Important?

Some beginners may think, what's wrong when they get their product return if it is not delivered properly and the delivery partner shipping cost per product is 30-60rs. You may think it's a small number but you will realize what's wrong in your business is the time when you try to SCALE the business.

For example, you have a product where your margin is of Rs.200, customer acquisation cost is Rs.100 and the shipping partner cost is Rs.50 to deliver your product at customer location. 

CASE 1: If your product is successfully delivered, only then you can make a profit of Rs.50 and Yes, till now I haven't included taxes. That's why good pricing is important which you can learn from us.

CASE 2: If your product didn't get deliver successfully, then your product will give negative 150rs loss.

That's why Reducing RTO is Important.

Here are some Strategies To Reduce RTO in Indian Dropshipping/Ecommerce:

#1. NDR Calls:

NDR means Non Delivert Report in Indian Dropshipping/Ecommerce. In which you call the customers to confirm their orders.

So, that you can cancel the fake orders in the beginning to avoid delivery charge or RTO. 

My suggestion: 

1. If you have less orders then you can do it by yourself only for those addresses which does not look genuine.

2. You can also try automation of NDR Calls through some websites.

3. You can try Roposo clout, they will confirm those orders through calling whose address does not seem genuine.

#2 Blacklisting few states

Well! I'm not against with any state but there are some states from where you can receive massive amount of orders but your delivery partner may not be able to deliver the product which results in increase in RTO and loss in business.

So, it's good to blacklist them in your Facebook Ads audience.

My Suggestion: If you are doing Indian Ecommerce, then you should ask your delivery partner about their range and then target only those cities and states.

#3 Your Product

Yes! Even your product can reduce the RTO percent that much which you can not even imagine.

I've tested a product which is completely unique for the customers and solve a common problem.

And I'm selling that product for last 2 months and still it's giving me 80% of succesfull delivery.

You should give this a try!❤️

I think this article is getting too long. 

Let's finish this.

Conclusion: 

NDR Calls, Your Product Quality and Importance and Few States matters where it comes to reducing your RTO ratio as compared to delivery ratio. Remember, survival is the main goal of any business and RTO is the backbone.

Thanks For Reading!

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