“My father has been in the textile business his entire life so I have always known the true cost of fabrics. Fabrics, the good ones – which would satisfy most Indian consumers’ needs are not really that expensive. While on the other side everyone who has stepped into any brand outlet knows that the retail price of a basic cotton shirt would be upward of Rs 2000. I could never understand the gap between the two until I interned at India’s largest men’s fashion company.” Mr Shivam, Founder, DakshinaStore.com, a brand by Moshai Fashion Private Limited.

Dakshina Store wanted to reach out to every Indian household with their premium quality yet affordable Indian ethnic fabric but the journey of starting a new D2C brand in India wasn’t easy. They struggled with a few challenges just like many other D2C brands do. But their zeal to tackle the challenges the right way encouraged them to join hands with Razorpay Magic Checkout. And the result was a drastic drop in their RTO rate from 40% to 9%. 

Meet Dakshina Store 

Dakshina Store's team reduces its RTO rate

“The actual cost of material and labour that goes into a garment is a fraction of the selling price. Putting a stretch of fabric through a production line to get a garment, then guessing the number of garments that might sell, then distributing all of those across thousands of stores until it hits the shelf, all take well over 6 years. And when there is unsold inventory, there comes deep discounting. It is self-evident that this traditional process is inefficient. Furthermore, it often leaves the wearer with poor-fitting garments. We should be able to do better and that’s when Dakshina Store, Moshai was born.”

Dakshina Store, Moshai is a clothing company based out of the textile hub of Gujarat, Surat. The company was started by Mr Shivam and his elder brother. While Mr Shivam looks after the marketing and tech side of the company, his elder brother takes care of the product. Dakshina Store offers a wide range of products, such as kurta sets, dhoti kurta, shirts and trousers, shirts and vesthi (South Indian dhoti), and bandhgala suits.

They have one of the country’s largest online collections of kurta fabrics. Dakshina Store focuses on providing customers with Indian ethnic clothing that their customers would love to wear and flaunt.

Learn More About Dakshina Store, Moshai 

The Challenges 

High RTO Rate 

COD was the preferred payment method for a lot of Dakshina Store’s customers. Being new in the market, Dakshina Store understood that customers were reluctant to trust them and therefore preferred COD as the mode of payment. The issue started when a lot of their COD orders were getting RTOed, inevitably hampering their business growth. And needless to say the higher the RTO rate, the tougher it was becoming for Dakshina Store to meet its revenue & profitability goals. The RTO rate was as high as 40%!

Wrong or Incorrect Address

Mr Shivam knew that India is a difficult market to try out a new D2C brand. And one of the main challenges that Dakshina Store faced was poor address quality. Most of their customers were entering either wrong or incorrect addresses. Addresses generally missed valid landmarks and sometimes lacked Pincodes. Even if they could track the customer in the digital realm, finding the customer physically was tough. 

“We had already tried all the other possible solutions such as verifying the address on WhatsApp, using IVR, OTP verifications, etc. Nothing made a dent in the RTO percentage. That process has been completely eliminated. Zero. Nada.”

The Solutions 

COD RTO Intelligence- One Solution for all COD RTO Problems 

Razorpay Magic Checkout provided Dakshina Store with one robust solution, which was COD RTO Intelligence. Magic Checkout provided Dakshina Store and other eCommerce businesses with the provision to automatically disable the COD (cash on delivery) payment method in real-time for high-risk orders. 

The COD RTO intelligence analyzed each order and red-flagged high-risk orders with a high propensity to RTO based on customers’ historic RTO patterns across hundreds of brands in the Magic Checkout network, which resulted in a significant drop in their RTO rate share- from 40% to 9%. Additionally, their prepaid order share increased by 30%. 

“We used to employ an internal tool to keep a score of how many RTOs and total orders a customer has made on our store in the past. Today, we completely bank on Razorpay’s data which has been aggregated from 100+ stores just like ours to mitigate risky orders.”

Read Also: VS Mani & Co.’s Order Conversion Rate Increased By 27%

Address Validation- No More Wrong or Incorrect Addresses 

Entering the correct address details is vital for the delivery of a product. And it is a known fact that a good share of RTOs happen because of incorrect, incomplete, and invalid addresses. To mitigate this challenge, Magic Checkout identified invalid/incomplete/non-deliverable addresses in real time for Dakshina Store. Here’s what Magic Checkout has done for Dakshina Store and many others: 

  • Magic Checkout ensures that addresses are entered correctly and in a structured manner by a shopper, making it easier for Dakshina Store and logistics partners to deliver the products. 
  • Magic Checkout detects monkey typing, otherwise known as gibberish detection, flags such orders and automatically disables the COD option for such high RTO risk orders.

“We could tally the data from ad pixels and see that almost 25% of our first-time customers had their address pre-filled i.e. had a returning customer-like checkout experience which has definitely boosted our conversion rate.”

The Impact 

Dashina Store, Moshai reduces its RTO rate

Mr Shivam on Razorpay Magic Checkout 

Dakshina Store Testimonial on reducing RTO rate

Bring Down Your eCommerce Store’s RTO Rate with Razorpay Magic Checkout 

Just like Dakshina Store, Moshai, every eCommerce store’s goal is to lower their RTO rate to grow their business. Dakshina Store took the decision to connect with Razorpay Magic Checkout to bring down their RTO rate, which was 40% earlier and now it is only 9%. These numbers can be yours too! So, connect with the Razorpay Magic Checkout team and let’s fight the high RTO rate together. 

For more details on Razorpay Magic Checkout:

Email: magic-checkout@razorpay.com 

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    Author Rashmee Lahon

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