A high return rate of products is the major pain point for e-commerce firms anywhere in the world. It add-up operational cost for sellers on these marketplace platforms. And Jeff Bezos-led Amazon is not an exception.
According to US e-tailer senior executive in India, Amazon has the maximum yield rate in the nation compared to all other markets it functions in.
The significant reason for yields is counterfeit products, Dharmesh Mehta vice president for consumer and brand protection at Amazon although he did not talk about the precise percentage of return rate in India. Amazon, according to its website, has offices in 30 countries.
As per industry experts, COD and logistics challenges like not tracing exact addresses in smaller towns are prime reasons for higher product returns. Over time as e-commerce have registered growth, it’s also witnessed a rise in many unhappy buyers and return of products.
Post demonetization, revenue came to more than 60 percent for online sellers including Flipkart, Snapdeal and Amazon as a result of high yield rate. Amazon had seen a rise of 20 percent in COD yield rate. In general, around 30 percent of GMV is merchandise returned and canceled by buyers, according to a Redseer report.
Meanwhile, Amazon is likely to deliver transparency instrument, which it has introduced in the US which enables users and sellers to scan a producer’s code through a mobile program to test for authenticity. It will be launched in India, said Mehta without establishing any timeline.
Homegrown etailers Flipkart and Snapdeal are also claiming to have taken measure to decrease yield rate. They too have reportedly return in the selection of 10-20 percent.
Last month a poll by LocalCircle outlined that approximately 19 percent of those buyers said they obtained imitation goods in the previous six months. They claimed to have received the maximum number of counterfeits from e-commerce websites in cosmetics and perfumes category. 69 percent users opined that they didn’t know how to identify a fake product and trust that the e-commerce platforms blindly, added the poll.