Running a dropshipping business can be profitable, but one big problem that many sellers face is high RTO (Return to Origin). RTO happens when an order is not delivered to the customer and is sent back to the seller. This increases costs and reduces profits.Hello everyone, my name is Akash Gupta. I am an e-commerce owner and digital marketer. In this blog, we will discuss simple and effective ways to reduce RTO in dropshipping.
1. Understand the Reasons for RTO
Before reducing RTO, you need to understand why it happens. Here are some common reasons:
- Fake orders: Some customers place orders for fun and never accept them.
- Incorrect address: The customer provides an incomplete or wrong address.
- COD (Cash on Delivery) orders: Customers sometimes refuse to accept COD orders because they change their mind or don’t have trust to a random ecommerce store.
- Delayed delivery: If the order takes too long, the customer might cancel it.
- Product mismatch: If the customer receives something different from what they expected, they might return it.
- Trust Issue: Customers also do not accept the product because it is wrapped in a colorful parcel, making it difficult for them to see the item. As a result, they do not trust the new store.
- Poor customer support: If customers cannot track their order or get answers to their questions, they may reject the order.
2. Use Prepaid Payment Methods
One of the biggest reasons for RTO is COD orders. Here’s how you can reduce COD and increase prepaid payments. I know what you’re thinking talking about prepaid orders in India is difficult. You are right, but when you target high-income customers with the right approach and product, they are more likely to choose prepaid.
Instead of full COD, you can try:
- Collecting a small advance payment: Ask for ₹50-₹100 upfront and the rest on delivery.
- Refunding advance in case of issues: This builds trust with new customers.
- Give discounts on prepaid orders: Offer a small discount (5-10%) to encourage customers to pay online.
- Show trust signals: Add reviews, secure payment badges, and a clear refund policy to build customer confidence.
- Use UPI and wallet options: Many Indian customers prefer UPI payments (Google Pay, PhonePe, Paytm) over credit cards.
3. Verify Orders Before Shipping
Fake orders are a big issue in dropshipping. You can prevent them by:
- Calling or messaging customers: Confirm high-value orders via WhatsApp or phone call before shipping.
- Using an OTP verification system: Ask customers to verify their phone number through OTP before placing an order.
- Blocking repeated fake orders: If you notice the same customer repeatedly placing fake orders, block them.
4. Improve Address Collection
Incorrect addresses lead to failed deliveries. To fix this:
- Use address validation tools: Some platforms auto-check if the entered address is correct.
- Provide autofill suggestions: This reduces typing errors.
- Ask for landmarks: A nearby famous place (like a shop or school) can help the delivery person.
- Confirm via WhatsApp: Send a confirmation message to ensure the address is correct.
5. Reduce Delivery Time
Fast shipping increases successful deliveries. Here’s how:
- Use multiple suppliers: If you source products from different suppliers, choose the one closest to the customer.
- Partner with fast courier services: Use shipping companies with a good delivery record.
- Offer express delivery options: Some customers are willing to pay extra for faster shipping.
- Track and update customers: Regular updates make customers less likely to cancel orders.
6. Provide Clear Product Information
Many RTO cases happen because customers receive products that don’t match their expectations. To avoid this:
- Use real product images: Show actual photos instead of highly edited ones.
- Write honest descriptions: Mention materials, dimensions, and colors correctly.
- Add customer reviews: Real feedback helps customers trust the product.
- Make product videos: A short video showing the product can reduce misunderstandings.
7. Improve Customer Support
If customers have questions but get no response, they might cancel the order. To prevent this:
- Use WhatsApp or chat support: Quick replies increase customer trust.
- Provide order tracking: Let customers track their orders with a simple link.
- Send reminders: If a COD order is on the way, remind the customer via SMS or WhatsApp.
- Have an easy return policy: If customers know they can return a wrong product, they are more likely to accept delivery.
8. Target the Right Customers
Most people make this mistake, and it’s a big one you should avoid. You need to know your target audience and focus on them—don’t waste money targeting unrelated audiences. Experimenting with your Facebook ads is crucial because the audience you attract fully depends on your strategy.
I want to emphasize that audience targeting is extremely important, and you should know how to do it effectively. If you need any help with Meta (Facebook) ads, click here to contact us.
Also, focus on these points and fix them:
- Analyze past orders: Check which locations and age groups have high RTO and avoid targeting them.
- Exclude risky locations: Some areas have a high number of rejected orders. Avoid targeting them in ads.
- Use detailed ad targeting: Target customers who are likely to buy seriously (for example, exclude 13-18 age groups who might place orders for fun).
9. Use NDR (Non-Delivery Report) Management
If a delivery attempt fails, the courier company usually provides an NDR report. Here’s how to use it:
- Call the customer: Ask if they still want the product.
- Reschedule delivery: If the customer was not available, try delivering again.
- Offer extra support: If the customer is confused, explain the benefits of the product.
10. Don’t use Cheap Looking Store
A cheap-looking store is a big drawback in e-commerce, as people don’t trust it. Having a well designed, simple, and attractive store helps build trust and improves conversions.
- Use a clean and professional design: Avoid messy layouts and too many colors.
- Ensure fast loading speed: A slow website makes customers leave.
- Add trust badges and reviews: Show customer feedback and secure payment symbols.
- Use high-quality images: Blurry or low-quality pictures make the store look unreliable.
- Have a clear return and refund policy: This builds trust and reduces hesitation in purchasing.
Instead of full COD, you can try:
- Collecting a small advance payment: Ask for ₹50-₹100 upfront and the rest on delivery.
- Refunding advance in case of issues: This builds trust with new customers.
Conclusion
Reducing RTO in dropshipping is important for saving money and increasing profits. By following these simple strategies verifying orders, reducing COD, improving delivery speed, providing clear product information, and offering good customer support you can minimize RTO and grow your dropshipping business successfully.
By taking these small but effective steps, you can improve order delivery rates and increase customer satisfaction. Try these methods and see a big difference in your dropshipping success!
Feel free to leave a comment below if you have any questions, queries, or feedback. I’d love to hear your thoughts and will do my best to respond to each one. Your input helps me create better content and assist you more effectively.
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