Omnichannel analytics minimizes RTO and improves revenue by 4%

Revealing how omuni helped an online retail platform reduce RTO loss and increased revenue.

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The overview
An online retailer- the official merchandising platform for many International brands like GAP, U.S. Polo Assn., Aeropostale, Ed Hardy, Sephora, Arrow, GANT and Indian brands including Flying Machine, True Blue, and Unlimited, amongst many others.

The challenge
This online retailer received a decent amount of online orders and as a process of order fulfillment, the brand was facing a significant challenge of high Return to Origin (RTO) rate i.e the non-delivery of orders and its return to the seller’s warehouse. However,  owing to this, the digital platform was facing a revenue loss of up to 13% due to: 

  • Blocked inventory (items stuck in transit)
  • Forward & reverse logistics
  • Re-packaging of returned items
  • Operations cost in processing orders

This created pressure for online retailers to adopt an omnichannel approach that would help them analyze all the aspects that caused high RTO and optimize the process accordingly.

Our approach
With the use of advanced analytics, we were able to analyze the complete RTO data and draw up scenarios that can reduce the chances of higher RTO. 

Our analytical insights concluded if customers are provided with a choice to choose their delivery time then the rate of RTO will reduce. Also, an option to mention the type of delivery address (home/office) helps in decreasing the return to origin rate. The introduction of address and time type features in the eCommerce site increased revenue by 4.13% and steadily reduced the RTO rate from 13% to 9%.

Feature highlights

Advanced analytics

By leveraging omuni’s advanced analytics, we were able to analyze relevant insights such as choose of delivery time and type of delivery address-helps to minimize RTO rate effectively.

Retail forecasting

Common customer patterns and behaviors were drawn by analyzing data and insights to predict how much of a specific product a customer is willing to purchase.

By apply advanced intelligence, the RTO rate was decreased and revenue was increased by 4% 

Identified: Scenarios that causes failed home deliveries and higher RTO rate
Developed: An omnichannel data strategy powered by advanced analytics 
Enabled: Address type and time feature in the eCommerce site


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