{"id":8946,"date":"2022-09-21T11:56:49","date_gmt":"2022-09-21T06:26:49","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=8946"},"modified":"2025-05-07T11:16:31","modified_gmt":"2025-05-07T05:46:31","slug":"case-study-electronics-company-return-to-origin","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/case-study-electronics-company-return-to-origin\/","title":{"rendered":"Find Out How an Electronics Company Reduces its Return to Origin Rate with Magic Checkout!"},"content":{"rendered":"

“The world is going through a paradigm shift in terms of technology and electronics upgrades,”<\/span><\/i> said the electronics company that wanted nothing else but to provide the best electronics products to its customers.\u00a0<\/span><\/p>\n

However, the eCommerce journey wasn’t as easy as the company envisaged it would be. Most of their orders were COD (cash on delivery) orders because 60-70% of Indian customers prefer paying via the COD payment method, and unfortunately, RTO (return to origin) was exceptionally high for the electronics company’s COD orders.<\/span><\/p>\n

\"High<\/p>\n

The Initial Challenges<\/span><\/h2>\n

Exponentially High RTO Rates<\/span><\/h3>\n

COD was the preferred payment method for 60% of their orders, and 40% of their COD orders were returning back to the origin for multiple reasons, inevitably increasing the RTO rate. The company had to bear both forward and backward logistics expenses, increasing its operational cost.\u00a0<\/span><\/p>\n

Also read: https:\/\/razorpay.com\/blog\/cash-on-delivery-and-the-challenges\/<\/a><\/em><\/p>\n

Unsatisfactory Business Growth\u00a0<\/span><\/h3>\n

Most of the cash on delivery orders was being returned to the seller, and it was becoming difficult for the company to increase its revenue. This directly impacted their business, contrary to what they wanted.\u00a0<\/span><\/p>\n

Damaged products were returning to the warehouse, and with every return or refund, the inventory was getting blocked. All in all, each return order was hampering their business goals, which resulted in unsatisfactory business growth.\u00a0<\/span><\/p>\n

Razorpay Magic Checkout\u2019s Solutions\u00a0<\/span><\/h2>\n

After facing some issues, the electronics company connected with Razorpay Magic Checkout. The team helped them understand how Magic Checkout can assist in reducing the return to origin rate and boosting the conversion rate.\u00a0<\/span><\/p>\n

Here are the two main reasons why the electronics company chose Razorpay Magic Checkout over others:<\/span><\/p>\n

RTO Protection\u00a0<\/span><\/h3>\n

RTO can bleed a business dry. <\/span>Magic Checkout helps <\/span>eCommerce and D2C<\/span> businesses overcome RTO losses and boost business growth. Magic Checkout\u2019s algorithm flags fraudulent and risky orders in milliseconds and stops RTO and potential order cancellations.\u00a0<\/span><\/p>\n

Smart COD<\/span><\/h3>\n

Magic Checkout provides eCommerce businesses with the provision to disable the COD payment option in real-time for high-risk orders. It analyzes each order and red flags high-risk orders where the propensity to RTO is high based on customers\u2019 historic RTO patterns across hundreds of brands in the Magic Checkout network.<\/span><\/p>\n

To further safeguard cash on delivery orders, Magic Checkout offers RTO Protection. Under RTO Protection, if a Magic Checkout approved cash on delivery order gets returned to origin, Magic Checkout takes the responsibility and absorbs the RTO-related costs, specifically the shipping cost. eCommerce brands can opt for the RTO Protection scheme provided by Razorpay Magic Checkout and reduce their RTO-related costs to an absolute ZERO.\u00a0<\/span><\/p>\n

Also read: https:\/\/razorpay.com\/blog\/footwear-brand-improves-its-checkout-experience\/\u00a0<\/a><\/em><\/p>\n

Razorpay Magic Checkout\u2019s Impact\u00a0<\/span><\/h2>\n

Soon after enabling Razorpay Magic Checkout<\/a>, the company\u2019s online business started noticing significant improvements.<\/span><\/p>\n

Zero RTO-Related Costs<\/span><\/h3>\n

RTO was an endless loop for the company that needed immediate attention. The electronics company opted for the RTO insurance scheme provided by Razorpay Magic Checkout. This helped in bringing RTO-related costs to zero by providing insurance against that.<\/span><\/p>\n

\"Return<\/i><\/b><\/p>\n

Fewer to No High-Risk Orders\u00a0<\/span><\/h3>\n

Since Magic Checkout gives eCommerce and D2C brands the provision to disable COD for high-risk orders, the company saw a reduction in orders where the propensity to return to origin rate was high. The result- more sales and improved business revenues!\u00a0<\/span><\/p>\n

Razorpay Magic Checkout Can Help You Reduce Your RTO Rates!\u00a0<\/span><\/h2>\n

Just like this electronics company, if you also have an eCommerce and D2C store and want Razorpay Magic Checkout to help you with your online store\u2019s return to origin rate, don\u2019t hesitate to contact us. Come be a part of Magic Checkout to boost business revenue and see positive changes! Magic Checkout<\/a> is truly magic\u2728.<\/span><\/p>\n

For more details on Razorpay Magic Checkout:<\/span><\/p>\n

Email: <\/span><\/i>magic-checkout@razorpay.com<\/span><\/i><\/a>\u00a0<\/span><\/i><\/p>\n

Website: <\/span><\/i>https:\/\/razorpay.com\/magic<\/span><\/i><\/a><\/p>\n

Get Magic Checkout<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Read the success story of an electronics company and find out how they lowered their return to origin rate with Razorpay Magic Checkout. <\/p>\n","protected":false},"author":87,"featured_media":8961,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[275],"tags":[252],"class_list":{"0":"post-8946","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-magic-checkout","8":"tag-magic-checkout"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/8946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/87"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=8946"}],"version-history":[{"count":4,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/8946\/revisions"}],"predecessor-version":[{"id":22548,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/8946\/revisions\/22548"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/8961"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=8946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=8946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=8946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}