Start COD By GoKwik: Expand Cash On Delivery Presence & Reduce RTO

Return to origin is a pervasive issue for almost all online retails brands operating in the Indian eCommerce industry. It extends beyond the simple cancellation of cash on delivery led orders. Rather, it imposes a significant financial and logistical burden on businesses and affects many facets of their operations.

Recognising the complexities involved here, GoKwik, a pioneer in eCommerce enablement developed a smart and strategic solution to solve this pressing concern.

It harnesses the power of artificial intelligence (AI) and machine learning (ML) to analyse

The Start COD Suite aims to make shoppers think twice before placing a cash on delivery order, meanwhile ensuring that it doesn’t convert into an RTO for the brand. At the same time, the module enables online brands to strategically open COD serviceability across different areas and keep RTO in check. Also Read: Navigating the COD Challenges: How eCommerce Brands Can Thrive

For all eCommerce brands that are planning to open and/or expand their cash on delivery serviceability across the country, GoKwik’s Start COD Suite is a true blessing. The module has two sides to it. One is the artistics side and the other is the Science-driven angle. Let’s explore the two.

The artistic side of the Start COD Suite by GoKwik places much emphasis on addressing and mitigating the challenges associated with cash on delivery in eCommerce. Here, the primary aim is to empower online brands to navigate through the complexities of cash on delivery transactions in the most effective and efficient manner. A detailed breakdown of the key elements are as follows.

By leveraging innovative technologies like artificial intelligence and machine learning, the Start COD Suite analyses shopper behaviour to identify patterns indicative of potential cancellations. Such a protective approach allows online brands to

The module provides eCommerce brands with the ability to smartly target those shoppers that often prefer cash on delivery as a payment option.

By identifying and engaging with this demographic, eCommerce brands can tailor their approach while catering to the COD-led shoppers. This tactical targeting ensures that COD services are offered judiciously and they very much align with the needs of the identified audience.

Another interesting aspect of the artistic side of the Start COD Suite is that it enables eCommerce brands to continue to offer cash on delivery as a payment option without compromising on the overall profitability of the company.

The module strategically introduces intelligent interventions that guide shoppers to

Lastly, the Start COD Suite effectively enhances the overall GMV of an eCommerce brand. As the module helps decrease cancellations and successful deliveries of orders, the module positively impacts the financial metrics of an online brand’s business. This, in turn, leads to an increase in GMV and as well as the revenue generation potential of the eCommerce platform.

The scientific approach of Start COD Suite involves using GoKwik's advanced risk intelligence framework to effectively and efficiently manage cash on delivery operations.

The framework ideally uses a combination of many sophisticated algorithms and GoKwik’s network intelligence of 100+ million shoppers to identify many critical parameters that play a crucial role in mitigating the risk of RTOs

GoKwik’s intuitive risk intelligence framework identifies many critical parameters that significantly impact the chances of RTO occurrences.

These parameters include factors like

By analysing the data through the lens of network intelligence, the system gathers insights into patterns and trends associated with these parameters.

Once the module identifies and analyses these mentioned parameters, it then categorises pin codes on the basis of their historical RTO performance. Ideally, pin codes with low RTO rate history are considered as low-risk zones. Here, eCommerce brands can offer cash on delivery service without much hesitation, and vice versa.

Low degree interventions are those that do not impose many harsh restrictions on shoppers for placing cash on delivery orders. For instance, COD Captcha, COD Recaptcha, and COD Prompt are considered as low-degree interventions. They merely ensure that a shopper thinks twice before placing an order and also keep bots and scripts from placing fake orders on a website.

As the Start COD Suite observes and evaluates the impact of the low-degree interventions, it then gradually suggests eCommerce brands to leverage medium and high-degree interventions to further expand their cash on delivery serviceability in areas where RTO rate is higher than usual.

Medium and high-degree interventions basically involve more assertive messaging, stricter order verification processes, and many other measures that help ensure responsible and committed purchases by shoppers.

Examples of medium and high-degree interventions include, COD Fees & Dynamic Prepaid Discounts, COD Blocking, and Partial COD.

Opening cash on delivery serviceability beyond your current focus areas requires proper planning. This ideally includes creating an outline to map out regions with opportunities, product categories or SKUs demonstratging low RTO risk, and defining similar parameters to maximise growth.

While GoKwik’s Start COD Suite is not a one-size-fits-all solution, here’s a prototype guide or steps that you can follow to open COD serviceability, increase business revenue, and keep RTO in check.

Test model performance and analyze shopper journey in GoKwik network. Identify high-, medium-, and low-risk shoppers, extract these insights, and formulate a plan of action.

Implement low-degree interventions in selected pin codes, product SKUs or UTM levels. Encourage shoppers to reconsider placing cash on delivery orders. Target areas, products and SKUs which have a RTO history below 15%. Realize up to 1.2X increase in GMV by implementing low-degree interventions only.

Gradually implement medium to stronger interventions on your checkout and payments page. Target areas which a RTO history lower than 25%. Reduce high-risk shoppers from placing COD orders and optimize the conversion funnel. Realize up to 1.4X increase in GMV with 10% RTO at this stage.

Open cash option to a wider audience and simultaneously introduce low- and high-degree interventions. Leverage techniqhes like offering additional discounts on digital payments such as UPI, wallets, etc. to increase prepaid adoption. Similarly, implement nominal fee on cash orders to reduce COD based orders. Achieve as much as 1.6X increase in GMV with reduction in RTO.

To unlock the complete potential of GoKwik’s Start COD Suite, get in touch with us today!