{"id":4134,"date":"2020-07-07T14:39:56","date_gmt":"2020-07-07T09:09:56","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=4134"},"modified":"2025-02-26T15:49:55","modified_gmt":"2025-02-26T10:19:55","slug":"karatcart-slashes-ecommerce-rto-rates-with-thirdwatch","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/karatcart-slashes-ecommerce-rto-rates-with-thirdwatch\/","title":{"rendered":"KaratCart Slashes RTO Costs by 36% with Razorpay Thirdwatch!"},"content":{"rendered":"

Indian e-commerce has seen a booming growth in the last decade, especially in the last few years. The jewellery industry, in particular, has been a favourite among Indian women and has experienced a massive increase in online sales over the last few years or so. According to a McKinsey report, online sales are expected to reach 12% of the overall market by 2020 and to 18% by 2025.<\/span><\/p>\n

The extent of Indian jewellery companies in e-commerce needs no introduction, with all major brands in the country from Tanishq to PC Jewellers now accepting online orders.<\/span><\/p>\n

When it comes to the niche market<\/a> of wedding jewellery, there are either high-end designer jewellery or average designs with unchecked quality from unorganised resellers, consequently increasing prices for end-customers. Born out of the need to eliminate the exorbitant rates and create a brand which speaks quality, thus bringing designer wedding jewellery directly to 120 million shoppers online in India at affordable prices, KaratCart was born.<\/span><\/p>\n

KaratCart<\/span><\/a> is an online jewellery store for women that specializes in handmade designer jewellery. It is the online distribution arm of Amori Creation, a leading retailer of exclusive jewellery. \u201cKaratcart prides itself for its Design Brilliance and Quality when it comes to Traditional Indian Jewellery at affordable prices. We want to become a brand synonymous with wedding jewellery in India\u201d, says Tanya, partner at<\/span> KaratCart<\/span><\/a>.<\/span><\/p>\n

While their brand was selling on marketplaces like Flipkart and Amazon from 3-4 years, they were also looking to commence their own storefront. After long consideration, KaratCart took the leap to start an online store on Shopify<\/a> in 2019 and they had a pretty solid start from the word go.<\/span><\/p>\n

Thousands of e-commerce businesses like KaratCart have chosen to start their e-commerce journey on Shopify. Shopify<\/a> stands to be one of the best e-commerce platforms to set up your store in today’s market. It’s designed to help people build their own, scalable online store with hundreds of built-in features, and tons of apps. Businesses can sell products directly on their website, and across multiple marketplaces and social media.<\/p>\n

Thus, KaratCart’s online store came into inception and sales grew at a rate of 20% month on month for the last six months. This move also proved to be highly profitable for their business in a very short span of time. All was well until they faced a problem they hadn\u2019t foreseen– the shockingly high rates of RTO and NDR. In her own words, Tanya feels that this was probably the biggest challenge they faced, which they failed to predict earlier.<\/span><\/p>\n

What is RTO\/NDR and what do they imply?<\/span><\/h2>\n

RTO or Return-To-Origin is defined as the state when orders cannot be delivered and have to be shipped back to the warehouse.\u00a0 An RTO occurs when a customer places an online order and the order doesn\u2019t get delivered due to a multitude of reasons like:<\/span><\/p>\n

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  1. Incorrect or incomplete address due to which the delivery partners are unable to deliver the orders<\/span><\/li>\n
  2. Impulse purchase by the customer where he\/she decides to cancel the order due to delay in delivery or finding the same product elsewhere for a better price etc<\/span><\/li>\n
  3. Fraudulent orders that were placed without any genuine intent<\/span><\/li>\n<\/ol>\n

    Another popular terminology for RTO orders is NDR which stands for Non-Delivery Report. Retailers usually receive NDRs from their respective delivery partners for their review and response.\u00a0<\/span><\/p>\n

    Return-to-Origin puts a significant cost burden on online sellers as they lose a lot of money in shipping the order back and forth. To give some context to this situation, here are some ways in which online sellers lose money with RTO:<\/span><\/p>\n