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Case Study · Fashion / Apparel

RTO cut from 38% to 19% — unlocking ₹1.6Cr/month in trapped margin.

Fashion Brand (mid-market ethnic wear) · 5 months

Business Overview

Ethnic-wear D2C brand doing ₹3.5Cr/month. Meta scale was strong but cash flow was strangled by 38% RTO. Every order was 62% of a real order.

Problem

RTO was treated as a logistics problem. It was actually a full-funnel psychology, ops and product problem.

Diagnosis

We mapped RTO drivers: 41% address quality issues, 22% delayed shipping, 19% cash-on-delivery buyer's remorse, 12% product expectation mismatch, 6% other.

Strategy

  • 01Deploy Anti-RTO Engine™
  • 02COD-to-prepaid nudges & incentives
  • 03Address verification via WhatsApp
  • 04Delivery-day expectation communication
  • 05PDP expectation engineering (size, fit, video)

Execution

  • Week 1–4: SOP rollout, WhatsApp confirmation flow
  • Week 5–8: Prepaid incentive engine, delivery ETAs
  • Week 9–12: PDP re-engineering
  • Week 13–20: Ongoing optimization + monitoring

Metrics

RTO Rate
38%19%-19pp
Prepaid Share
22%61%+39pp
Net Revenue
₹3.5Cr₹5.1Cr+46%
Cash Cycle
38 days11 days-71%
Contribution Margin
9%21%+12pp

Key learnings

RTO is not a shipping problem. It's a trust problem you engineer out of the funnel.

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