Spoil Shoppers with Multi-Coupon Application

Gone are the days of restrictive, one-size-fits-all discounts. The multi-coupon feature allows e-commerce and D2C businesses to configure complex discount scenarios where multiple coupons can be used together or in specific combinations. Whether it’s pairing a “10% off” code with a “Free Shipping” offer or combining seasonal deals, the multi-coupon feature gives you the flexibility to craft unique promotions that truly resonate with your customers.

Why the Multi-Coupon Feature Matter for Your Business

• Lower Customer Acquisition Costs (CAC): Capture new customers with irresistible offers that stand out from the competition.
• Boost Revenue: Increase the average order value and encourage repeat purchases with strategically combined discounts.
• Strengthen Customer Loyalty: Build trust and loyalty by providing customers with more value and a superior shopping experience.
• Offer Versatile Discounts: Let customers stack different coupon types, such as payment methods and promotional discounts, for maximum savings.

Step-by-Step Guide to Setting Up the Multi-Coupon Feature

Access the Razorpay Dashboard

Log in to your Razorpay account and head over to the Dashboard to manage all your payment and discount settings.

Navigate to the Coupon Configuration Page

Within the Dashboard, find the Coupon Configuration section inside Magic Checkout to begin setting up your multi-coupon feature.

Create and Configure Coupons

Step 1: Create and Configure Coupons: Set up various coupon types and define how they can be combined.

Step 2: Save and Test: Save your coupon setup and test it thoroughly to ensure the correct application.

Step 3: Monitor and Optimize: Track coupon performance and adjust your strategy accordingly. 

Learn more

Combination Types: Create Your Perfect Discount

To help you get started, here’s a quick overview of how you can combine different types of coupons: 

Read Also: Gamify Your Shopping Experience with Coupon Variety

Pro Tips for Maximizing the Multi-Coupon Feature

• Communicate Clearly: Make sure customers know about the multi-coupon feature and how to use it. This transparency will enhance their shopping experience.
• Stay Agile: Regularly review and tweak coupon strategies to align with changing market trends and customer preferences.
• Listen to Your Customers: Use customer feedback to refine discount offerings and make them even more appealing.

Razorpay’s Multi-Coupon feature is designed to enhance your promotional strategies with flexible, multi-layered discounts. By offering a range of discount options, you can create a more engaging shopping experience that drives sales and fosters stronger customer relationships. Start configuring Multi-Coupons today to see how it can positively impact your store’s performance and customer satisfaction.

Get Started With Magic!

At Razorpay, we’ve embarked on a mission to unlock this potential. We delved into the science of frictionless conversions, analyzed customer behavior, and prioritized security to craft a revolutionary checkout experience: the brand-new Razorpay Checkout. This isn’t just about shaving seconds off checkout; it’s about redefining the checkout as a strategic touchpoint that fosters trust, boosts conversions, and strengthens your brand identity.

Engineering a Blazing-Fast Checkout Experience

The brand-new Razorpay Checkout is built upon the core principle of one-click checkout simplicity. We’ve harnessed the power of pre-filled addresses and streamlined workflows to reduce the checkout process to a mere 9 seconds. This lightning-fast checkout experience minimises drop-offs, keeps customers engaged, and ultimately leads to increased conversion rates.

But speed is just one piece of the puzzle. We’ve also prioritized fostering trust and security, two pillars essential for a successful checkout experience. Here’s how the brand-new Razorpay Checkout tackles these challenges:

India’s Most Trusted Checkout

First-time shoppers are often hesitant to share their information online. The new Razorpay Checkout integrates seamlessly with the Razorpay Trusted Business Badge, instantly signalling reliability and putting new customers at ease.

Effortless Checkout with Automatic Data Pre-Fill

There’s no need for manual input. Email addresses, phone numbers, shipping details, and payment information, including OTPs for new customers, are all automatically pre-filled. This simplifies the checkout process, makes it 5x faster, and boosts the conversion rate by 40%. 

Gamified Promotions

Who doesn’t love a good deal? The new Razorpay Checkout allows you to personalize and gamify promotions by offering targeted coupons and discounts directly at checkout. This not only increases customer engagement but also boosts your average order value by 47%.

Your Brand, Reflected in Your Checkout

A seamless checkout experience shouldn’t come at the cost of your brand identity. The new Razorpay Checkout empowers you to customize the entire checkout flow with your brand colours, fonts, and logos. This ensures a consistent and cohesive brand experience, from product browsing to successful purchases, with our lightning-fast checkout experience. 

Intelligent COD (Cash on Delivery)

Cash on Delivery remains a popular payment method in India. However, it can be susceptible to fraudulent orders. Our intelligent COD system utilizes sophisticated algorithms to proactively identify and intercept fraudulent orders at checkout, saving you time, money, and the hassle of managing disputes.

Effortless Checkouts, Soaring Sales: The Razorpay Checkout Advantage

The new Razorpay Checkout isn’t just a product; it’s a strategic investment in your business’s future. By prioritizing speed, security, and brand consistency, you can transform your checkout process from a hurdle to a conversion catalyst.

New to Razorpay? Click the link below to join the future of effortless shopping.

Cash on Delivery: Bridging Trust and Convenience

In India, Cash on Delivery accounts for over 65% of e-commerce transactions, making it a significant and influential force in the Indian e-commerce market. Let’s find out the pros and cons of this payment method.

Pros:

Trust Building: In an era plagued by online scams and fraudulent transactions, Cash on Delivery emerges as a beacon of trust and reliability. With Cash on Delivery, customers enjoy the assurance of paying only upon receiving the product, alleviating concerns about potential scams or counterfeit goods. For example, imagine a customer in a Tier 2 city who is hesitant to make online payments due to security concerns. By offering COD the e-commerce store earns the trust of this customer, thereby expanding its customer base.

Wider Customer Reach: Particularly in Tier 2 and Tier 3 cities where apprehensions about digital payments persist, Cash on Delivery serves as a vital conduit for businesses to tap into diverse markets and connect with a broader customer base. For instance, a customer residing in a remote village may lack access to digital payment methods. By providing COD as an option, businesses can cater to such customers, thereby enhancing inclusivity and expanding their market reach.

Stimulating Impulse Buying: By simplifying the purchase process and eliminating the need for upfront payment details, Cash on Delivery fosters impulse buying among online shoppers. The seamless checkout experience encourages spontaneous purchases, resulting in faster checkouts and heightened consumer engagement. Consider a scenario where a customer is browsing an online store and comes across a limited-time offer. With COD, the customer can make a quick purchase without the hassle of entering payment details, thus capitalizing on the impulse to buy.

Cons:

High Returns: One of the significant drawbacks of Cash on Delivery is its propensity for high Return to Origin (RTO) rates. With no upfront investment from buyers, COD orders are more susceptible to returns, leading to increased logistical complexities and operational overheads for businesses. High RTO rates not only impact profitability but also erode customer trust and satisfaction, as frequent returns can indicate dissatisfaction with product quality or inaccurate product descriptions.

Additional Costs: Despite its convenience, Cash on Delivery transactions entail additional expenses for businesses. Delivery partners often levy extra fees on COD orders to cover operational costs and manage returns, thereby increasing the overall cost of order fulfilment. Additionally, businesses incur logistical costs associated with handling cash payments and processing returns, further impacting profitability.

Restricted Cash Flow: Unlike prepaid transactions that ensure immediate fund transfers to merchants, Cash on Delivery payments introduce delays in cash flow, hindering daily operations and posing challenges in managing finances effectively. For businesses, delayed cash flow can impede growth opportunities and strain operational resources, especially during peak seasons or promotional campaigns.

Refund Challenges: Processing refunds for Cash on Delivery orders entails a cumbersome and time-consuming process. From obtaining bank account details from customers to initiating manual payouts, the refund process is fraught with challenges, often resulting in delays and administrative burdens for online businesses. Additionally, refund policies for COD transactions may differ from those for prepaid transactions, further complicating the process and potentially leading to customer dissatisfaction.

Prepaid: Efficiency and Security

The prepaid payment method offers unique advantages, including enhanced delivery convenience, as recipients need not be present at the time of delivery. Payments being made in advance enable items to be left securely with a reception or designated area. Now, let’s explore the pros and cons of this payment method.

Pros:

Streamlined Transactions: Prepaid payments offer a seamless and expedited checkout experience, enabling customers to complete transactions swiftly and securely without the need for cash exchange or additional paperwork. By integrating secure payment gateways and authentication protocols, businesses can streamline the checkout process and enhance user experience, thereby reducing cart abandonment rates and driving conversion.

Enhanced Security: With robust payment gateways and stringent authentication protocols, prepaid transactions offer heightened security and protection against fraud, instilling confidence in buyers and bolstering trust in online transactions. By leveraging encryption technology and fraud detection measures, businesses can safeguard sensitive payment information and mitigate risks associated with cyber threats and fraudulent activities.

Improved Cash Flow: Unlike COD payments that introduce delays in fund transfers, prepaid transactions ensure immediate settlement of funds, facilitating smoother cash flow management and operational efficiency for businesses. By leveraging automated payment processing systems and real-time transaction tracking tools, businesses can optimize cash flow management and allocate resources effectively, thereby enhancing financial stability and scalability.

Cons:

Limited Accessibility: While prepaid payments offer convenience and security, they may alienate segments of the population with limited access to digital payment methods or those who prefer the flexibility of cash-based transactions. For businesses targeting diverse customer demographics, offering multiple payment options, including COD and prepaid, is essential to ensure inclusivity and accessibility.

Buyer Apprehensions: Some shoppers may harbour reservations about prepaying for goods or services, fearing potential fraud or dissatisfaction with their purchases. Overcoming these apprehensions and building trust in prepaid transactions remains a challenge for businesses. By implementing transparent refund and return policies, providing secure payment options, and offering incentives such as discounts or rewards, businesses can alleviate buyer concerns and foster confidence in prepaid transactions.

Boost Prepaid Orders with Razorpay Magic Checkout

While offering diverse payment options, including Cash on Delivery, remains essential, businesses increasingly recognize the value of strengthening their prepaid order share. This shift is crucial for mitigating the challenges associated with COD transactions and maximizing the benefits of prepaid transactions.

Razorpay Magic Checkout emerges as a powerful solution to facilitate this transition. By leveraging Magic Checkout, businesses can seamlessly convert COD orders to prepaid, reaping the advantages associated with prepaid transactions while minimizing the drawbacks linked to COD.

One effective strategy involves targeted outreach to customers who opt for COD orders. Through personalized WhatsApp messages, businesses can incentivize customers to convert their COD orders to prepaid by offering discounts or incentives. These messages include a Razorpay payment link, enabling customers to make prepayments and streamline the transaction process conveniently. Additionally, merchants can consider implementing an extra COD fee as a deterrent for COD orders, encouraging customers to choose prepaid options and further optimizing their payment processes. 

By prioritizing prepaid orders and leveraging the capabilities of Magic Checkout, businesses can enhance their cash flow, reduce return rates, and simplify operational processes.

For businesses looking to provide Cash on Delivery as an option for their customers, Razorpay Magic Checkout offers an additional layer of support. With Magic’s RTO Intelligence, businesses can now efficiently screen and prevent COD orders with a high likelihood of return. This comprehensive solution underscores Magic Checkout’s versatility and capability to address various challenges, ensuring a seamless experience for both businesses and customers.

With Magic Checkout, businesses can navigate the COD vs. prepaid dilemma with confidence, ultimately optimizing their payment strategies and driving sustainable growth in the competitive e-commerce landscape.

Navigating the COD vs. Prepaid Conundrum

As we unravel the complexities of COD vs. prepaid, it’s evident that informed choices are paramount in shaping your e-commerce success. Whether you seek to fortify trust with COD or streamline transactions with prepaid, understanding your options empowers strategic decision-making. For those aiming to bolster prepaid shares, Razorpay Magic Checkout is ready to be your indispensable ally. Seamlessly converting COD to prepaid, Magic Checkout elevates your payment ecosystem, enhancing efficiency and customer satisfaction.

Abandoned Cart Recovery- What is it?

Abandoned cart recovery refers to the process of re-engaging with customers who have added items to their online shopping carts but left the website without completing their purchase. By implementing strategies such as email reminders, personalized offers, and retargeting ads, businesses aim to recover potentially lost sales and improve overall conversion rates.

Abandoned Cart Recovery- Maximizing Opportunities

Monitoring metrics is paramount for informed decision-making, with the cart abandonment rate being one of the most critical indicators. This figure reveals how many customers leave their virtual shopping carts without making a purchase. It’s absolutely crucial for businesses to grasp this data to craft savvy strategies for abandoned cart recovery and re-engage those potential customers.

Targeted Retargeting Strategies

Harnessing demographic insights of cart abandoners enables businesses to tailor their retargeting efforts meticulously. By crafting personalized marketing messages and offers that are aligned with specific audience segments, businesses can significantly enhance the chances of re-engagement and conversion.

Personalized Communication

Going beyond basic demographics, personalized communication based on factors like geographic location, purchase history, and browsing behavior fosters a deeper connection with potential customers. This tailored approach ensures that retargeting efforts resonate with individual preferences, driving higher conversion rates.

Enhanced Customer Experience

By delivering personalized retargeting campaigns, businesses showcase their understanding of customer needs and preferences. This results in a more enriched and customized shopping experience, fostering loyalty and paving the way for repeat purchases.

Gaining a Competitive Edge

In the fiercely competitive e-commerce landscape, leveraging comprehensive cart abandonment data provides a strategic advantage. By executing more relevant and effective retargeting campaigns, businesses can outperform competitors, maximizing sales opportunities and market share.

The Magic Checkout Edge: Reclaiming Lost Sales

Magic Checkout revolutionizes the abandoned cart recovery process, ensuring no opportunity goes untapped. Whether customers drop off after minimal interaction or nearly complete their purchase journey, Magic Checkout diligently captures and shares crucial data with e-commerce providers. Let’s dive into the step-by-step process:

Step 1: Seize Every Opportunity

As customers explore a Magic-powered e-commerce store and add items to their cart, the path to recovery unfolds. With a mere click of “Buy Now,” they encounter the summary page, where their email ID and phone number may already be pre-filled or prompted for input if they’re new to the platform. Even if they decide to exit at this juncture or provide partial information, such as email or phone, Magic Checkout swiftly intervenes, capturing and sharing crucial data with the e-commerce business.

Step 2: Bridge the Gap

As a customer progresses through the transactional journey, should a customer advance beyond the summary page but pause at the address page, Magic Checkout ensures meticulous data management. Phone numbers, emails, and addresses, if furnished, are promptly shared with the e-commerce business, effectively closing the gap between abandonment and recovery.

Step 3: Bringing It All Together

In the final stretch, should a customer abandon their cart at the payment page, Magic Checkout seamlessly shares all provided details with the e-commerce businesses. While resembling native checkouts in this aspect, the distinguishing feature of Magic Checkout lies in its capability to furnish customer data at every checkout stage, furnishing e-commerce businesses with invaluable insights right from the outset.

Read Also: 10 Abandoned Cart Recovery Strategies for E-commerce Success

The Magic Difference

With Magic Checkout, it’s not just about the big picture—it’s about the little details that make all the difference in abandoned cart recovery. From the first click to the final confirmation, we’re there every step of the way, empowering businesses to craft targeted strategies that drive results. With a touch of magic, we capture and share information at every stage, ensuring e-commerce businesses have the insights they need to reclaim lost sales.

Unleashing the Power of Magic Checkout: Revolutionizing Abandoned Cart Recovery

Magic Checkout doesn’t just promise results—it delivers. With a remarkable 85%+ increase in abandoned cart generation, Magic Checkout stands as the ultimate solution for e-commerce businesses seeking to reclaim lost sales opportunities. But that’s not all. Our platform goes beyond conventional methods, offering seamless data sharing that empowers businesses to take decisive action.

Reigniting lost prospects and expediting transactions is no longer a challenge with Magic Checkout. By leveraging the Magic URL in retargeting efforts, e-commerce stores can witness a remarkable transformation. This URL acts as a gateway to accelerated transactions, activating the Magic checkout modal with just a click. With transactions propelled by an impressive 5x speed, Magic Checkout doesn’t just streamline the process—it supercharges it, facilitating efficient abandoned cart recovery.

Say goodbye to lost sales and hello to unprecedented growth with Magic Checkout. Experience the power of seamless data sharing and accelerated transactions, setting new standards for cart abandonment recovery.

Empowering Conversion Every Step of the Way

Regardless of the stage of cart abandonment, Razorpay Magic Checkout is poised to equip e-commerce stores with the insights necessary to enhance conversion rates. Experience the difference with Magic Checkout. Discover how our seamless approach to data sharing can transform your retargeting efforts and propel your business forward. Abandoned cart recovery is just a click away!

However, there’s a major challenge – creating trust between the parties involved in the transaction is quite a head-scratcher. One of the biggest mistakes marketplace businesses make is to assume that trust deficit is not such an urgent problem to deal with. According to a PwC study, 87% of businesses believe their customers trust them. Interestingly, however, only about 30% of customers actually do! 

In this blog, let’s understand how marketplace businesses are impacted by trust deficit and how they can solve this challenge. 

Buyers and Sellers: A Battlefield of Trust Deficits

The fundamental hurdle of trust deficit impacts buyers and sellers, both. Have a look:

The Problems Buyers Face:

• Fraud concerns: Fear of receiving fake or damaged products, falling victim to scams, or losing money without recourse.
• Payment security: Worries about online payment methods and the safety of their financial information.
• Product quality issues: Uncertainty about the authenticity, condition, and quality of products purchased online.
• Delayed or non-delivery: Frustration with unreliable shipping and delivery services, and the possibility of never receiving their orders.

Business Impact of Trust Deficit on Sellers:

• Payment disputes: Risk of buyers claiming chargebacks or refusing to pay for delivered goods. Studies indicate that merchants globally spent 10% of their revenue in 2022 just on managing payment frauds.
• Loss of revenue:  A 2023 report showed that eCommerce spent 11% of their revenue on managing fraudulent payments – up by 1% from 2022 as mentioned earlier. 23% of the surveyed merchants didn’t even know how to track such frauds!
• Struggle to improve brand name: Most consumers are unlikely to buy from a business they don’t trust.
• Inability to add more payment options: Studies show that 36% of merchants are offering BNPL (buy-now-pay-later) options. Naturally, an escrow guarantee becomes all the more useful.

Naturally, solving for trust deficit becomes the foundation for building a successful marketplace business – both from a buyer’s and seller’s perspective.

How are Marketplaces Solving for Trust?

Commonly, marketplaces address the challenges of trust deficit with reputation systems: online reviews and ratings, for instance. Secure payment processing platforms that offer some protection against fraud and chargebacks are another powerful tool that can assure consumers that their payments are safe.

The third and most robust way to manage trust deficit successfully are escrows.  In an escrow agreement, a reliable third-party holds the buyers’ funds, and releases it to the seller only upon fulfillment of the conditions of the transaction. Escrow agreements also ensure the seller receives their due payments in case the buyer defaults.

How technology has revolutionized escrows

Traditionally, escrows involve a three-party intermediary holding funds in trust until both parties fulfill their obligations.

Tech-driven escrow solutions, such as RazorpayX Escrow+ are now transforming the escrow landscape through:

Top-tier success rates

• Automatic retries for failed payments: Payouts are only marked as failed after repeated unsuccessful attempts, maximizing success rates.

• Smart bank outage detection: Systems automatically retries failed transfers and adapts to bank outages for seamless payout delivery.

Complete compliance

Adherence to RBI guidelines at all times, monitored by a SEBI – authorized trustee.

Higher payment efficiency

• Real time payment statuses, instant money transfers and automated bulk payouts
• Accurate reconciliation of statements recording millions of transactions!

Instant disbursals

Payouts, loans, cashbacks, etc., can be disbursed instantly in part or full with no need for manual intervention!

RazorpayX Escrow+ is a prime example of industry-best tech-powered escrows. Opening an escrow account is extremely fast and simple. Our escrow experts will onboard you in just about 48 hours, with focused guidance at each step.

                   Explore RazorpayX Escrow+

Escrows are the Future of Marketplace Businesses

• Improved security: Reduced risk of fraud and manipulation, fostering trust and confidence among users.
• Enhanced efficiency: Streamlined workflows and automated tasks lead to faster transaction processing and reduced costs.
• Increased transparency: All stakeholders have access to a single source of truth, ensuring accountability and fair resolution of disputes.
• Increase in business: Stakeholders have a solid reason to trust each other – both interests are safeguarded. A win-win for all parties.
• Reduced operational costs: Automation eliminates the need for manual intervention, resulting in significant cost savings.

How Escrows Work in Practice:

The escrow process is pretty simple:

Step 1:  Buyer and seller choose a secure escrow service to solidify trust.

Step 2: The buyer places the payment in a neutral vault guarded by the escrow service. The transaction details and pre-defined conditions are programmed into a contract.

Step 3: The seller fulfills the terms of the transaction (delivery of goods or services)

Step 4: The buyer inspects the delivery or work. If satisfied, they give the green light.

Step 5: Upon approval, the escrow service releases the funds to the seller, completing the deal.

Today, all marketplace businesses are trying to unlock a world of new opportunities, empowering buyers and sellers, fostering global trade. With RazorpayX Escrow+ companies can look forward to a more secure, efficient, and thriving marketplace landscape.

FAQs

What is an escrow?

An escrow is a secure service that holds funds until conditions are met. It’s like a trusted third party, ensuring sellers receive payment after buyers get their goods or services. Escrows foster trust and transparency by eliminating frauds.

What are the advantages of an escrow?

Escrows have benefits for buyers and sellers, both. Buyers are assured that their goods/services will be delivered to them because the third-party holding their funds will forward their payments to the sellers only upon delivery. Sellers are safeguarded in case the buyer refuses to pay. This reduces risks due to delays, frauds, etc. Escrows act as a guarantee, and promote trust between all parties.

Are escrows legal in India?

Yes, escrows are legal in India. Courts uphold the validity of escrows. In fact, escrows may even be mandatory in some scenarios – real estate for instance.

As e-commerce is beginning to make large strides across all parts of the country, sellers are receiving a high influx of orders. But as sellers are faced with a mountain of opportunities and orders every day, they are also plagued by a common problem – Return to Origin or RTO orders.

RTO can arise due to various reasons, such as an incorrect address, customer unavailability or refusal of delivery. Effective strategies can be implemented to reduce RTO and minimise its impact on e-commerce operations. In this article, we will be looking at what the meaning of RTO in e-commerce is, why it occurs, and what are the best practices to reduce RTO losses for your e-commerce store.

What is Return to Origin?

Return to Origin is defined as the process in which an order never reaches the customer and is sent back to the warehouse citing a variety of reasons. RTO orders can become more significant as sellers receive more orders and expand to Tier 2 and Tier 3 cities.

Studies show that 1 in 3 orders are RTO orders. This can result in a significant increase in handling costs to process these orders. Let’s look at how e-commerce businesses can lose money:

• Forward and reverse logistics costs
• Blocked Inventory (Items stuck in transit)
• Physical quality check and re-packaging of returned items
• Increased probability of damage to fragile items, and hence more money spent in shipping them
• Cash handling charges for CoD orders
• Operations and resources cost in order processing

It is also worth noting that most RTO orders for e-commerce stores arise out of fraudulent instances and Cash on Delivery orders.

Related Read: What Is the Difference Between Inbound and Outbound Logistics?

The impact of e-commerce fraud

Fraud in e-commerce has substantially increased globally over the last few years with the immense rise in online marketplaces. With more sophisticated technology available to fraudsters, it’s only become more difficult for e-commerce businesses to keep a track of the tactics used to defraud online businesses.

Here are some common types of fraud performed in the e-commerce industry:

1. Chargeback fraud
2. Identity theft
3. Return fraud
4. Credit card fraud
5. Merchant fraud
6. Phishing
7. Clean fraud

The real impact of e-commerce fraud is the cost incurred to the business. Every failed or retracted order causes a chargeback to the e-commerce business. A chargeback is a sum that must be returned by the merchant to the cardholder after a fraudulent transaction. 

However, successfully executing a chargeback can be expensive. Processing a chargeback includes operational costs such as transaction fees, legal fees, currency conversions, etc. This can mean potentially large losses for the merchant when an elaborate fraud is in question.

Also read: Chargeback Fraud Setting Back E-commerce Businesses: Is There a Way Out?

Another type of loss is the fact that the seller will not be able to resell the same product after it is canceled and he will have to bear the losses. These types of losses are classified under Return-To-Origin or RTO. 

Also read: A short guide to e-commerce fraud

Why are RTOs the biggest challenges for e-commerce brands?

Return to Origin poses significant challenges for e-commerce brands, impacting their operational efficiency and financial stability. The difficulties associated with managing RTOs, especially for cash-on-delivery (COD) orders, can hinder growth and profitability. Here are the key return to origin challenges:

1. Increased costs: RTOs result in additional logistics, packaging and inventory management expenses.
2. Revenue loss: Failed deliveries lead to lost sales opportunities and revenue erosion.
3. Cash flow implications: COD orders increase non-payment risk and tie up working capital.
4. Operational inefficiency: RTOs require time-consuming processes like order cancellation, return handling, and reprocessing.
5. Customer dissatisfaction: Frequent returns negatively impact customer experience and loyalty.

Why should e-commerce brands reduce RTO?

Reducing RTO is crucial for e-commerce brands due to various reasons.

1. RTO orders often arise from fraudulent activities and COD orders. These instances can lead to significant inventory and profit losses. Safeguarding your business from such losses is essential in maintaining financial stability and growth.

2. A higher RTO rate reflects inefficiencies in the e-commerce fulfilment process. Late deliveries, faulty products or product description inaccuracies can contribute to increased returns. It is crucial to optimise the shipping experience and ensure timely and accurate deliveries. Quick shipping minimises uncertainty for customers and reduces the possibility of returned orders.

By minimising RTOs, you can enhance customer satisfaction, reduce costs associated with returns, and improve overall efficiency within your e-commerce brand.

How to reduce RTO in e-commerce

One of the questions that has been plaguing e-commerce for many years is “How to reduce returns in e-commerce?” or simply, “How to stop RTO?”

The answer to this question can be simpler than you think, albeit you follow the right ways to mitigate these returns. Let’s look at some effective ways to minimise returns on your website:

1. Optimize product descriptions: A concise product description can go a long way in helping you set the right expectations with your customers. It’s safe to say that an effective product copy can cut down your return worries by at least 50%!
2. Tracking: Tracking plays an important part in customer satisfaction and can significantly bring down customer anxiety whilst ordering from an unknown website. Providing your customers with timely updates can reduce the chances of returns and cancellations.
3. Checkout process: Payments are a crucial part of how a customer perceives your online store. A safe payment experience is the dealbreaker when it comes to online shopping for Indians. With a trusted payment partner like Razorpay, your e-commerce business can process payments smoothly and guarantee a hassle-free checkout experience, thus reducing returns.
4. Packaging: One of the best ways to keep things lively is to send over a great package, both aesthetically and functionally. If you’re getting a lot of returns due to damaged products or unsatisfied customers, it may be a good time to review your delivery packaging.
   Ensure tamper-proof packaging, especially if you are dealing with fragile and perishable items. This can help you in bringing down returns due to faulty packaging.
5. Customer service: Indian shoppers seem to have finally broken out of the shell where they fear purchasing from an unknown brand / seller. One of the major contributing factors for this is simply the extent to which successful e-commerce companies have bridged the gap with customer service. Customer service, just like tracking, is crucial in eliminating second thoughts and doubts about how good your online store is. Establish an airtight feedback system to deal with customer grievances. You will witness e-commerce returns and RTO drop significantly.
6. Improve product page: You can enhance your product page by including multiple high-resolution images, detailed descriptions, and dynamic sizing charts. This helps customers form clear expectations, leading to more informed purchase decisions. Accuracy in order fulfilment is crucial to reducing returns and RTO instances.
   You should integrate genuine customer reviews on the product page to convey product quality and usage. Offering diverse customer support options like chatbots, email and contact numbers can help customers resolve queries and concerns effectively.
7. Offer various payment options: It is crucial to provide customers with multiple payment avenues, such as debit cards, credit cards, UPI and digital wallets. Although COD is also a viable payment option, it can often lead to higher RTO rates due to the risk of non-payment or returns. Encouraging customers to opt for digital payment methods can significantly mitigate the impact of RTO. Additionally, offering discounts or rewards for choosing digital payments can incentivise customers to embrace cashless transactions.
8. Prevent return frauds: Safeguarding against fraudulent activities is essential to protect your business and maintain customer trust. Investing in fraud-protection software can help detect suspicious behaviour and trigger alerts, allowing you to take immediate action.

   Conducting a quality check upon delivery ensures that the product meets the customer’s expectations and minimises the chances of fraudulent returns. Implementing one-time passwords (OTPs) for high-value orders adds an extra layer of security by verifying the authenticity of the customer.

   You must ensure identifying and blacklisting fraudulent customers to reduce the instances of fraudulent returns in the future. This approach not only reduces RTO but also protects your brand reputation and improves overall efficiency and bottom line.

How can I reduce my cash-on-delivery losses?

Until a few years ago, the e-commerce industry was still warming up to the concept of COS losses. It was simply assumed as another cost of business that would inadvertently occur if you owned an online store.

However, things are turning around for the Indian e-commerce industry. The awareness about RTO losses is increasing manifold. With Razorpay Magic Checkout you need not worry about coping with losses manually, as we help you tackle COD losses via artificial intelligence and reduce RTO and cancellations.

Here’s how Magic Checkout can help your business:

Shipping address verification: Magic Checkout identifies incomplete and non-deliverable addresses. You can verify and update the address with the customer via SMS, WhatsApp or call and increase order deliverability rates.

Risky order profiling: Magic Checkout captures orders directly from your storefront. It flags risky and fraudulent orders in milliseconds upon analysing 300+ parameters and provides detailed reasons. You can stop potential order cancellations and RTO orders with Magic Checkout.

Dashboard analytics: Get RTO analytics and insights at a state / city / pincode level and discover cues that contribute to your RTO losses. Get detailed order review reports to understand delinquent behaviour and incorporate learnings in your business strategy.

Model customisation: Magic Checkout’s ML algorithms learn, grow with time and localise the learnings to constantly improve accuracy according to your business’s needs. You can also set your own flagging rules to make it even more flexible. You can even blacklist certain users based on email IDs / phone numbers.

Intelligent automation: Automation is essential as your e-commerce business grows. Set intelligent workflows to automate accepting or rejecting red-flagged orders based on risk reasons and save on operational and support costs. Automate order confirmations, payment links and other functions to optimise your business, reduce operational costs and reduce RTO for your e-commerce store.

Convert risky CoD orders to prepaid: With the all-new PrePay CoD from Razorpay Thirdwatch, you can now convert your risky CoD orders to prepaid by sending payment links to your customers. Additionally, you can avail features like discounts, automation and also send payment links in Hindi with Razorpay Thirdwatch.

That ends our article on how to reduce returns in e-commerce and how to eliminate RTO losses in your e-commerce store. We hope this helped you in gaining better insights about how you can deal with such losses.

Conclusion

Effective return management in e-commerce brings numerous advantages. By strategically handling returns, you can expedite goal achievement. Minimising RTO instances reduces associated losses and contributes to heightened efficiency for your e-commerce brand. External assistance, such as fraud prevention measures and optimisation of product pages, can further enhance the effectiveness of your return management strategy. By focusing on reducing RTOs, you can improve overall efficiency and ensure a positive impact on your e-commerce operations.

Curious about Thirdwatch? Check us out below and avail a one-month free trial!

Frequently asked questions

1. What are RTO charges in e-commerce?

RTO charges, or Return to Origin charges, refer to the costs incurred when a package is returned to the seller’s warehouse or fulfilment centre due to unsuccessful delivery attempts or customer returns. These charges include transportation costs, processing fees and inventory management expenses associated with handling returned goods.

2. What are some common reasons for RTO in e-commerce?

• Incorrect addresses provided by customers
• Customers not being available at the time of delivery
• Customers refusing to accept the package
• Delivery failures due to logistical issues
• Inadequate communication between the customer and the delivery executive

3. What is the ROI formula in e-commerce?

Return on Investment (ROI) in e-commerce is calculated by dividing the net profit gained on a product by the initial investment made. The formula is:

ROI = (Net Profit / Initial Investment) * 100

4. What is the best ROI for e-commerce?

The best ROI for e-commerce varies depending on factors such as industry norms, business goals and market conditions. However, a positive ROI indicates that an e-commerce business is generating more revenue than its initial investment. A higher ROI signifies greater profitability and efficiency in utilising resources.

However, managing cash flow is vital for sustained success in this dynamic industry. That’s where Razorpay Line of Credit comes in, offering a powerful solution to overcome cash flow challenges and unlock your e-commerce business’s growth potential.

Understanding cash flow’s significance in e-commerce

The e-commerce industry is known for its fast-moving nature, with money flowing rapidly and metrics constantly shifting. As a result, the financial health of online businesses can often fluctuate, making effective cash flow management critical for achieving success in the e-commerce space.

• A consistent cash flow allows businesses to maximise their growth potential by ordering more inventory, generating higher sales volumes, and building strong and lasting relationships with suppliers.
• With a steady cash flow, e-commerce businesses can expand their product offerings and diversify their business, ensuring resilience in the face of market fluctuations.

Insufficient funds to meet the needs of your online store or to replenish inventory can result in lost sales and disruptions in operations. This can ultimately slow down, or even stall, the growth of your business.

By effectively managing your cash flow, you can ensure that your e-commerce business remains agile and adaptable to the ever-changing demands of the market. It allows you to:

Seize growth opportunities

Invest in marketing campaigns

Optimise your operations for maximum efficiency

With a robust cash flow management strategy in place, you can navigate the uncertainties of the e-commerce industry and position your business for long-term success.

Identifying common cash flow challenges in e-commerce

E-commerce businesses face various cash flow challenges that can hinder their growth and sustainability. By understanding and addressing these challenges, businesses can develop strategies to overcome them and achieve financial stability.

1. The manufacturing dilemma: from in-house to supplier
   The manufacturing dilemma is a common challenge faced by smaller e-commerce businesses. Many start by manufacturing and selling their own products to have more control over the production process and higher profit margins.However, as these businesses aim to scale their manufacturing operations, they encounter the need for significant capital investment. Scaling up production allows for lower per-unit costs, but it requires substantial funds for equipment, raw materials, and infrastructure. This can strain cash flow, making it difficult to achieve the desired growth.
2. Acquiring customers: the cost conundrum
   Acquiring customers in the competitive e-commerce landscape can be another cash flow challenge. Smaller businesses often face the cost conundrum of high customer acquisition costs. Investing in marketing efforts, such as advertising campaigns and customer acquisition strategies, can be expensive. These costs can eat into cash reserves, making it challenging to generate sufficient revenue to cover expenses and achieve profitability.
3. Navigating revenue ups and downs: balancing the cash flow scale
   If a majority of revenue is generated during a specific quarter or season, the remaining quarters may experience lower sales volumes and revenue. This creates cash flow gaps, where the business faces periods of lower incoming cash while still having ongoing expenses to cover. Managing these gaps and ensuring a consistent cash flow throughout the year becomes crucial for sustaining operations and fuelling growth.

Unlocking cash flow success: how Razorpay Line of Credit empowers e-commerce businesses

Razorpay Line of Credit offers a valuable solution to address the cash flow challenges faced by e-commerce businesses.

With its unique features and benefits, it empowers businesses to maximise their growth potential and navigate the financial complexities of the e-commerce industry.

1. 1. Bridging the manufacturing gap: Get quick cash for business expansion
      
      With Razorpay Line of Credit, e-commerce businesses can access the necessary funds to scale up their manufacturing operations.Whether it’s investing in equipment, raw materials, or infrastructure, the credit line provides the capital needed to expand production capabilities, optimise costs, and meet growing customer demand.
   2. Managing customer acquisition costs: Use funds for unplanned marketing & promotions
      
      Razorpay Line of Credit offers businesses the flexibility to invest in marketing and customer acquisition efforts. This enables them to reach a wider audience, drive sales, and generate the necessary revenue to cover expenses. The credit line ensures that businesses can allocate funds strategically towards marketing initiatives without compromising their cash flow.
   3. Smoothing out uneven revenue distribution: Ease cash flow during seasonal ups and downs
      
      The uneven revenue distribution that many e-commerce businesses experience can create cash flow gaps. Razorpay Line of Credit serves as a financial buffer during slower periods, allowing businesses to bridge the gap between revenue cycles.
      By accessing funds when needed, businesses can cover their ongoing expenses and maintain a consistent cash flow throughout the year.
   4. Flexibility in repayment: Repay the borrowed money when you want
      Razorpay Line of Credit offers flexible repayment options, giving businesses the freedom to adapt their repayments based on their cash flow situation.This flexibility allows businesses to align their loan repayments with the revenue they generate, ensuring that they can comfortably manage their financial obligations without straining their cash flow.
      [bctt tweet=”Your business needs are unpredictable. So you need a loan that is flexible. Explore Razorpay Line of Credit today!” username=”Razorpay”]
   5. Quick and convenient access to funds: Online application in three simple steps
      The streamlined application and approval process of Razorpay Line of Credit ensures that businesses can access funds quickly and conveniently.This eliminates the need for lengthy paperwork and extensive waiting periods typically associated with traditional loan applications. E-commerce businesses can rely on the credit line to access funds promptly whenever they need to address their cash flow challenges.

eCommerce shipping solution in India- the strategy, how to calculate the shipping cost, and more. Everything is ready for you in this Razorpay Magic Checkout, a one-click checkout solution blog post.

A lot of effort goes into providing the best shopping experience to customers. From selecting the right products, ensuring the online store is easy to navigate, choosing a reliable shipping partner, and providing a seamless checkout process, the goal of any eCommerce business is to leave customers satisfied and make them repeat buyers. 

Choosing a reliable shipping partner is an integral part of running a successful business. Here’s an interesting stat- 36% of online shoppers abandon their carts when they realize they have to pay for shipping. 

While a lot of customers ask for free shipping, providing free shipping isn’t as simple as it looks. Someone has to pay for that shipping.

Big E-retailers can absorb the shipping costs, but the same isn’t true for every eCommerce/D2C business. The goal here is to prepare an eCommerce shipping strategy that will keep customers happy without eroding business profits. Simply put, you need a shipping strategy that is designed for the sustainable growth of your eCommerce business.

 Related Read: What is the Trademark Logo Registration Process in India?

The Basics 

You would do well to set up a concrete foundation for an optimal eCommerce shipping strategy based on the following parameters: 

Weight and Size: The weight of the product will play a significant factor in determining the overall shipping cost. In some cases, the cost of a heavier parcel with a smaller size could be the same as a lighter parcel but with a larger size. Speaking to the shipping partner thus becomes necessary to understand how they charge you based on weight and size. 

Packing Materials: Fragile, sensitive, and perishable products will require extra packaging materials to keep the product inside intact. Your shipping partner will be able to tell you about the exact price in case any extra packaging is required. 

Unpacking Delight: Think about how you can delight your customers when they open the shipment box. Think of handwritten notes, colorful confetti, seasonal freebies, etc.

Delivery Method: Do you want the package to be picked up from your facility, or would you deliver the package to the shipping company? Would you pack the products on your own, or do you want your shipping partner to take care of that? Are you thinking about dropshipping, managed inventor, and fulfilment? All these things have to be thought of beforehand. There are shipping companies who can pack your products on your behalf. Speak to them and find out the charges for the same and then decide.

Read Also: 14 Must-Have WooCommerce Plugins For Your E-commerce Store

Determining Shipping Rates

Free Shipping

 93% of customers shop more when they see free shipping. Offering free shipping to customers can reduce your cart abandonment rates, but as we said earlier, shipping is never free. Someone will have to pay for it. Here are a few options that you can try: 

• When showing the product price, you can increase the product price to make up for the shipping cost. 
• You can provide free shipping on best-selling products and bear the cost on your own. 
• Instead of increasing the price of the product completely, you can increase it slightly to cover the partial shipping cost. 
• Offer coupon codes to your customers to make up for the shipping cost.
• You can provide free shipping on a minimum order value.  

Real-Time Rates

Real-time or live rates allow eCommerce/D2C businesses to offer shipping rates in real-time. Whatever shipping rates are asked by the shipping company with regard to the weight and size of the product and the distance covered, the same price will be shown to customers. Everything gets synced in real-time, meaning if the shipping company increases the rate by 5%, it will be automatically updated on your online store. The customers will know the exact amount they need to pay, which can boost customer trust. 

The recommended thing to do here is to add multiple shipping companies that offer real-time shipping rates and let customers choose and pay.  

Flat Rates 

Flat rates are quite popular and the easiest to set up. You apply a flat rate or a flat shipping charge on all your products regardless of how heavy or lightweight or how small or large they are. Flat rates shipping charges are ideal for eCommerce businesses with a standard product line. But if your store sells products of different sizes and weights, flat rates won’t be the right choice because then you have the risk of overcharging or undercharging your customers. 

Table Rates 

When flat rates don’t work for your eCommerce store, table rates can be a viable option. Table rates allow you to offer shipping rates based on sizes, weights, shipping classes, the total number of items, and destinations. Few rules that you can create using table rates:

• Ship products only when the order totaling is Rs.500 or more. 
• Charge Rs. 100 when the weight is less than 5 kg, and for anything beyond 5 kg, charge Rs. 150. 
• In case the delivery destination is within the same city as the online store, you can offer free shipping. 

Below, you will see a few shipping calculators provided by some of the top shipping companies:

Blue Dart – Price finder

DTDC – Delivery charges

Shiprocket- Rate calculator 

Choose Packaging Options Carefully

As eCommerce businesses grow, so do the expectations of customers. Earlier packaging used to be a way to pack products and send them to their destination safely. But packaging these days has become an effective medium to set oneself apart. 

To create an exceptional brand image, one needs to think beyond factory bags. 

Cardboard Boxes

Cardboard boxes remain the most trustworthy packaging material for businesses of all shapes and sizes. They are durable and sturdy. But to make it a marketing and branding tool, try some nifty personalization. For example, you can add hand-written notes to give it a personalized touch. 

Paperboard or Mailers 

Paperboards are suitable for products like jewelry, books, small electronic gadgets, and more. In the case of fragile items, you can secure the product even further by using bubble wrap. If you don’t want to use paperboard, you can go for plastic or poly mailers. 

Paper Bags 

Paper bags are quite popular in the eCommerce ecosystem because they are inexpensive and biodegradable. These highly customizable packaging materials can be used for small toys, inexpensive jewelry, and apparel. 

Custom Packaging 

While all the above-mentioned packaging materials are customizable, some eCommerce stores like to go out of the box to impress their customers. Custom packaging can provide customers with a unique unboxing experience. Although expensive, custom packaging can create a brand image for yourself. The custom box or custom paper bag (you can choose the type) can have brand logos, designs of your choice, and much more. You can let your imagination run wild with custom packaging. 

Read Also: 8 Must-Have Shopify Apps to Grow Your eCommerce Business!

Communicating Shipping Prices 

Communicating shipping prices to your customers is paramount. When you communicate with your customers properly, you present yourself as a trustworthy brand that believes in transparency. Also, being clear about the shipping cost will save you from miscommunication and after-sales troubles. 

To communicate shipping prices effectively, try these tips: 

No Surprises 

Customers don’t like surprises when it comes to their money. Therefore, ensure to display the shipping charges clearly before they pay. The right thing to do here would be to display the shipping charges once they add the product and before they pay for their order. You can include a statement, such as “shipping charges may apply and will be calculated during checkout.”

Razorpay Magic Checkout, for example, calculates the shipping charges dynamically to let customers know the total cost they would be paying. 

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

Answer Shipping-Related Queries on the FAQ Page 

Every online store should have a dedicated FAQ page. When a customer is in doubt, they will try to get in touch with the business. But with a full-proof FAQ page in place, you will be able to take some pressure off the operations team. 

On the FAQ page, ensure to explain the reason for the shipping cost. Tell them if the shipping price is calculated based on size, weight, or distance. Do you import your products or source materials from aboard? If yes, include that as a reason. Whatever the reason for the shipping price, provide customers with the correct reasoning. 

Add a Shipping Video 

If your customers have to pay for shipping, take this as an opportunity to boost engagement with customers. Create a video and explain everything. Just like the FAQ page, you can have a dedicated video just to explain the shipping cost and how it is calculated. This will make your business more transparent, and transparency is always appreciated by customers. 

Tracking Shipping Status ​​

Apart from showing customers the expected delivery date after they place an order, ensure to send timely shipment/package tracking details via email, SMS, WhatsApp, etc. When you share shipping status details proactively, you create positive branding. Include the following when you communicate with customers regarding their shipping statuses:

1. Tell them the expected delivery date. 
2. Provide them with the shipping company’s name, tracking number, and a link to track the shipping status. 
3. In case of delays, let your customers know and tell them the reason for the delay. 

On your website, don’t forget to add these details to every order. If you don’t have the feature to track shipping details on the website, never miss out on sending updates. 

Wrapping Up 

Free shipping may not be the best option for every eCommerce/D2C business. But implementing the correct eCommerce shipping strategy and reevaluating the strategy from time to time is crucial for business growth.

Related Read: What is eCommerce POS Integration & How to Streamline Offline & Online Sales?

Instagram, as of today has more than 1 billion monthly active users and 68% of Instagram users use this platform to explore and engage with D2C/ECommerce brands.  

Interactions per post on Instagram are much higher than on other social media platforms. And Instagram is one of those few social media platforms which is yet to be saturated with a lot of marketers. Facebook, WhatsApp, and Youtube have the highest number of monthly visitors, which is why marketers are often seen on these platforms trying to engage with customers instead of Instagram. 

Instagram has recently modified its algorithm, which caused a massive uproar among social media marketers.

The new modification was done with the hope that its users will be able to see the best 30% of content the moment they log in. And to be a part of that best 30% of the content, ECommerce brands need to create content that will yield good results. So, let’s get started with our Instagram marketing tips and Instagram social media marketing strategy guide. 

1. Batch and Automate

Instagram users are overloaded with a lot of content. And since every brand tries hard to reach out to users with different kinds of content, the key to outshining competitors here is to be authentic.

Creating content daily is a herculean and time-consuming task, but with batching, things can become a lot easier. Batching is a process of arranging work in sets or groups. 

Batching can help brands do as much as they want in one go instead of assigning tasks at sporadic intervals. This way, marketers can become more productive and focus more on the tasks they have at hand. 

Here are a few things that you can think of batching: 

• Keep Content Handy

As an ECommerce brand, mark the days that are most important to you, for example, the festive season. Pay attention to ideal posting times also. For example, as per Hootsuite, the best time of the day to market content on Instagram is 11 am on Wednesdays. You can think of publishing content accordingly and be prepared likewise. 

Canva lets users create free designs. You can use Canva and create content around hashtags that are relevant to your eCommerce business and products. Another good option to create engaging images for Instagram is Pablo. The best thing to do would be to prepare 12 months’ worth of Instagram content. The idea here is to be well-prepared in advance. 

If you don’t have the resources to create content in advance, you can always hire freelancers from platforms like Upwork, People Per Work, Freelancer.com, etc.

• Schedule Content

Rather than reminding yourself to post content on Instagram daily, leverage tools like Latergramme. Although Latergramme won’t post content on your behalf, you can use it to pre-upload content (as much as you want) and publish it at regular intervals from the mobile app. Just like Latergramme, there are a host of similar applications, such as Grum, Buffer, Instaplan, and more.

You can also use Hubspot’s Instagram content calendar to organize content as per date and time. Our advice would be to upload different types of content on Instagram- static, reels, and stories. 

• Dedicate Time to Respond

When customers start engaging with brands on Instagram, keeping tabs on those comments and responding to them becomes a complex task. It is understandable that you, as an eCommerce business owner, might not be able to reply to each comment every minute; hence it is recommended to build a system and know your way around when to respond to comments. 

The approach to follow here is to dedicate some time to engage with your customers. Assigning a couple of people to handle requests and comments on Instagram will be a good solution.

Read Also: 7 D2C Trends to Watch in 2023 for Greater Growth!

2. User-Generated Content is a Must

While being direct on social media works, brands that people feel emotionally connected to bear better results. Making every moment memorable and building a community on Instagram is indispensable. Here are a few tips that can help:

• Share BTS Moments 

Take pictures and videos of your behind the scene (BTS) moments that show the progress of your work. Posts like these generate a lot of positive emotions among users and allow them to feel close to your brand.

• Share or Re-Share Your Customers’ Photos

Ask your customers to take pictures of your products. Then take those photos and post them on your Instagram business account. Don’t forget to tag the person in the picture. This will help others see how the product will look like.

If your customers are proactively sharing their photos wearing or using your products, like their posts, leave a comment, and re-share. 

3. Bring in Influencers

If you don’t want to brag about your products yourself all the time, hire influencers and let them sway their followers. Figure out influencers on Instagram with a strong base of followers. Well-established influencers have already built a name for themselves. Use their power to market your products. Let them become the advocate of your brand. 

4. Go Non-Salesy

Showcase your products in a non-salesy but appealing way. Asos, a fashion brand often markets its products in a non-salesy way. They play around with different texts in the description box. Rather than asking their audience to buy it from them right away, they would often say what the style is about, what style will go with what kind of occasion, and so on and so forth.

5. Try Instagram Live

Instagram Live feature allows users to share live broadcasts. The best way to use this feature is to showcase your products and sell them while you are live. If you are new with a decent number of followers, use this feature to talk about your brand, what kind of products you have, and to share educational and relatable content. 

For example, if you are a new apparel business and not many people know about you. Use Instagram Live to talk about what kind of dresses they can wear on a sunny day out, or what should someone wear to the office.

But if you are using this feature for a live sale, make it easier for the users to buy from you. For example, you can show one product and tell them the “Buy Now” link is in the comment section. Alternatively, if you want to highlight a link, you can go to the Sticker icon and include a URL to your Live feed as well.

Note: You can always ask your followers to share your live link with more people. 

6. Make Buying Convenient

More followers on an Instagram account means customers are showing interest in your products. The better the engagement, the better the brand visibility. However, gaining more followers or an increased number of likes on posts are just vanity metrics. 

For the Instagram social media marketing strategy efforts to transition into sales, ensure that customers feel drawn to purchase the product. 

• Whenever you post a picture or a reel, add the product link instead of the online store link.
• Add the store link in the bio section. You will see a “Link” option right under “Bio”. Use that to share your online store’s URL or the product page. 
• If someone has engaged with your post and has shown interest, but hasn’t purchased, ensure that you re-target them by messaging them on Instagram and providing them with a link to complete their purchase. 
• Once they are on your product page of the online store, reduce the purchase steps by using a fast, one-click checkout solution such as Razorpay’s Magic Checkout.

Read Also: Slash Cart Abandonment Rate with Magic Checkout + Truecaller OTP-Less Verification

Wrapping Up

Instagram has users who love to shop. If you are an eCommerce business, make sure that you endorse your products on Instagram. Keep track of every post’s performance and tweak your Instagram social media marketing strategy based on your results for better growth. Make the best use of this platform, work on the best Instagram social media marketing strategy, and augment your sales.

Do tell us which Instagram marketing tips you liked the most in the comments!

Source: Inc42

As online shopping is growing, customer buying behavior is evolving as well. The D2C industry is already seeing a wave of changes, and adapting to these changes is a necessity. So let’s find out what D2C trends to expect in 2023 and beyond.

Hyper-Personalized Shopping 

Hyper-personalization refers to providing a highly personalized shopping experience based on real-time behavioral data, AI, advanced analytics, and services, that are catered to individual aspirations and needs. With hyper-personalization, eCommerce stores can provide customers with a customized, targeted, and fine-tuned shopping experience.  

Take Nykaa, for example. Nykaa, a marketplace, has launched a new feature called Routine Finder. It creates a customized routine for skin, hair, and overall wellness. SkinGenes Rx, another cosmetics company, offers targeted skincare programs based on the skin’s genetics. Another good example is Qua Nutrition, which suggests nutrition products after analyzing every individual’s health requirements. 

Plugins like Visidea, WooCommerce 360º Image, Advanced Product Fields, and more can help you provide personalized shopping recommendations to your customers on WooCommerce. And for Shopify, you can try Product Customizer App, Qstomizer App, and Zepto Product Personalization App. 

Don’t miss the D2C event of the year—Sign up for Razorpay D2C Summit 2024! Be a part of India’s top event for growth, innovation, and networking in the D2C space.

Social Commerce  

More than 4 billion people use social media platforms such as Facebook, Instagram, and Twitter. Social commerce provides a massive space for D2C businesses to grow. As per Statista, social commerce is expected to grow at 30.8% CAGR from 2022 to 2030, and another report says that almost 70% of small businesses are already present on at least one social media platform.

Online shoppers are everywhere. Try Facebook Shop, Instagram Shopping, and Pinterest Buyable Pins. If on Instagram, try their Visual Shopfronts that allow customers to buy straight from the photo or video no matter where they are on the app. Make use of influencer marketing (micro-influencers will be better for new D2C brands to build credibility and trust) and let them advocate your products. Provide customers with behind the scene moments to feel connected to your brand and also leverage these platforms to provide the best customer service experience. 

Product Sampling 

Customers are overloaded with a host of products, often leading to decision fatigue. Product samples, therefore, help in deciding whether to go with a product and stay committed to it wholeheartedly or not. A sample is more than a delightful bonus; it is a tool to help customers remove their apprehensions about a product. 

Smytten, for example, is doing a good job with marketing samples. Smytten allows customers to test different products from different brands at a minimal cost. This gives exposure to brands and allows customers to go with the ones they find the most suitable. 

Read Also: 10 Ways to Fight Cart Abandonment

Online-to-Offline Approach 

“Having your store is in itself a good way to publicize your D2C brand,”- Vineeta, CEO of Sugar Cosmetics. 

Although digital channels have a major role to play in building brand awareness, they are now expanding to establish an offline presence as well. With an offline presence, brands can expect to cater to a larger base of customers. Being available offline allows customers to interact with brands through multiple touchpoints. 

“After carving a niche for themselves in the online space, D2C brands are now expanding and growing beyond digital channels and spreading their footprint across offline channels,”- Paridhi Goel, co-founder of Love Earth. 

Artificial Intelligence 

AI is helping D2C brands provide a more immersive shopping experience. With the help of AI, eCommerce brands can leverage their customers’ shopping activities, tastes, purchase histories, and more, and use the same data to provide better product recommendations, thereby increasing the chances of more sales. 

Lenskart, for example, uses 3D AI technology that allows customers to try various frames right from the comfort of their homes. The result is an augmented shopping experience. You can use AI to do upsell as well. For instance, if your customer has added a moisturizing cream to the cart, leverage AI to suggest hand and foot cream that will suit their skin type. 

Sustainability 

Climate change is real, and it is affecting both businesses and customers. Customers today are more mindful of their shopping habits than ever before. That’s why sustainability is imperative today and will continue to dominate the D2C space in 2023. Reducing carbon footprints, minimizing waste, using recycled and organic materials, and practicing ethical trade are all part of sustainability. 

Some good examples of D2C brands going sustainable are mCaffeine, Minimalist, Aachoo, Conscious Chemist, Bellavita, Discover Pilgrim, Earth Rhythm, Khadi Natural, and a few more. mCaffeine and Conscious Chemist protects the environment by recycling their plastic, while the rest provide sustainable, naturally-source, and cruelty-free products. 

Express Checkout 

Customers want a seamless shopping experience, which is why D2C brands are focusing more on how to make the buying journey smooth for their customers. According to Baymard, the average cart abandonment rate is 70%, of which 24% of customers abandon their carts because they are asked to create an account and another 17% of customers drop off because they find the checkout process too complicated.  

D2C brands these days are leveraging new-age checkout solutions that remove the arduous task of filling out lengthy account creation forms, make checkout fast and easy, encourage customers to become repeat buyers and increase impulse buying and boost customer loyalty. 

If you want to power up your checkout, you can explore Razorpay Magic Checkout.

Change is the only constant in the D2C space; to keep growing in this cut-throat domain, adapting to these D2C trends is vital.

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