GoKwik says it has processed orders worth $1 bn, reduced returns for D2C brands

The network platform, which provides full-stack solutions to D2C brands, marketplaces, and omnichannel e-commerce players, expects this number to grow four-fold by increasing its network and handling issues post purchase, including warehousing, fulfilment and last-mile delivery.

“The Indian e-commerce market has a unique way of functioning. Cash on delivery continues to be one of the most preferred payment methods. However, this unique buying behaviour brings unique challenges with over 25-30% of cash-on-delivery orders turning to RTO (return to origin). RTO impacts not only impacts sales and profit but also leads to added costs in terms of reverse logistics for the brands,” said Chirag Taneja, Co-Founder, and CEO of GoKwik.

RTO is a major pain point for e-commerce and online merchants. According to industry-wide data, about 20% of orders are returned. If the order is placed in cash-on-delivery mode, returns can be as high as 40%.

The company, founded in November 2020 by Taneja, Ankur Talwar and Vivek Bajpai, has partnered with brands such as The Man Company and Neeman’s, among others, to help improve their conversion rates and boost profitability. For instance, Neeman’s witnessed a 30% surge in its conversion rates nearly a year after it partnered with e-commerce enabler GoKwik. Similarly, return to origin fell by up to 20% for The Man Company, says GoKwik, while there was an increase in prepaid conversions.

“By using data science and technology, we are creating solutions to curb RTO losses at every stage of shopping. A lot of our merchants have been successfully able to reduce RTO by as much as 20% in a span of 3-4 months using our solutions. We will continue to work towards our mission to eradicate RTO losses to a great extent,” added Taneja.

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GoKwik also said its UPI solutions help improve checkout conversion rates of e-commerce businesses, ensure higher GMV realisation, increase profitability, lower customer acquisition costs (CAC), and increase delivery rates.