Learn about the steps we have taken to improve your returns experience.

1. Returns
How we are helping you

2. We Are Here For You At Each Step!
Return TAT issues
Lost-in-transit/Mis-ship
Product damage in transit
1
Issues Faced
LOGISTICS
Initiatives Undertaken
Ongoing work to improve visibility and reduce the return Turn
Around Time
Thermal Labelling to prevent lost returns and mis-shipments
Packaging improvements to minimise product damage
Area
It is our constant endeavour to give you the most seamless selling experience. We also
understand that Returns are an integral part of your day to day business, so to help you
manage them successfully, we have undertaken various initiatives.

3. We Are Here For You At Each Step!
Buyer Fraud
Logistics Leakages
2 FRAUD Smart Pickups to ensure right return pickup from customer
FRM process deployed to check high value returns
To prevent RTO pilferage – Primary seal checked across hubs
Issues Faced Initiatives UndertakenArea

4. We Are Here For You At Each Step!
Visibility Issues
Reconciliation Issues
3
Inadequate Communication
to sellers on the return
policy, process, initiatives
and SPF
Issues Faced
4
SELLER PORTAL
COMMUNICATION
Initiatives Undertaken
• Using engaging content
• Creating more awareness through various modes of
communication like Seller Learning Centre, Emails,
SMS, seller portal banners, etc.
Area
Comprehensive redesign of the seller portal to improve:
Visibility of
Return reasons
Return tracking
Return
reconciliation

5. Smart Pickups
Flipkart Initiatives
Smart Pickups
Product Pickups just got smarter!
Now we have:
 Intelligent technology driven pickups
Thermal Labelling Seller Portal Improvements
With this, you can:
 Ensure that the right product is picked up
from the customer (inclusive of all
accessories and freebies)
 The Flipkart Field Executive will do a set of
checks to ensure the right return pickup

6. Flipkart Initiatives
Smart Pickups
What we have done:
 Revamped Labelling through the use of
thermal printers, which are being
installed across 300+ hubs of Flipkart
Seller Portal ImprovementsThermal Labelling
How you will gain:
 This will ensure that the labels do not
fall-off/get interchanged
 This will minimize the instances of
lost-in-transit and wrong return
 (mis-shipped return) delivery to seller
Your Product Labels will never be the same again – courtesy, Thermal Labelling!

7. Flipkart Initiatives
Smart Pickups Thermal Labelling Seller Portal Improvements
We know there are concerns that
need to be addressed:
 Poor visibility of returns on
the seller portal
 Unavailability of regular
reports on returns for
reconciliation
We are redesigning the Seller
Portal for Returns to include
 Order management flows
 Multiple report generations for
inventory reconciliations

8. Returns is the way of life in e-commerce
Online business is a growing industry. We did some research for you and found out :
This provides you with a tremendous growth opportunity!
Source: www.trueship.com, Comscore 2012 report, PWC report- Total Retail 2015, BCG report- Returns:
The ugly ducklings of retail, www.cmo.com, www.mycustomer.com , www.internetretailing.net,
www.sdcexec.com, www.eurosciencemarketing.com, etc.
Thus, in order to establish customer trust with the platform,
we require a customer-friendly return policy
80% of customers
Are loyal to companies that offer hassle-free
returns
Relation of customer loyalty with Return policies:
92% of customers
Will shop at a store again that offers easy
returns
82% of customers
Won't shop at online stores that don't make
returns hassle-free

9. The Opportunity in Returns!
Why Returns in online business works as a factor of trust:
Trust in E-commerce
 Trust is more difficult to build in online businesses and even more critical for
success
 Lack of trust is the most significant long-term barrier for realizing the full
potential of e-commerce
Trust for Flipkart
 Flipkart has earned the Indian customer’s trust by making his buying experience
memorable every time
 Trust enables us to ring in more sales in the form of repeat purchases
How trust in
e-commerce
works in India
Why Returns in online business works as a factor of trust
Thus, a friendly return policy and a hassle-free return process is imperative for e-commerce

10. Returns are a sales enabler!
Want to know why
there is a high volume
of sales on Flipkart?
Because we have a
customer-friendly Return policy!
Do you know what
this means?
Returns are more of an enabler than a
deterrent to doing business online!

11.  Posses the potential to develop a sense of trust or authority with
customers as the result of a physical space like a store or office
 Can sell a product personally to the customer at a store/shop
 Are in a position to give the customer trials at the store
 Provide the freedom for customers to touch, feel and try out a product
Trust Factor – online vs offline!
Online and Offline Businesses come with their own benefits.
Let us compare how things work differently in the two:
OFFLINE BUSINESS ONLINE BUSINESSOFFLINE BUSINESS

12.  Have benefits such as:
 Saving on infrastructure costs (biggest cost saving as commercial spaces cost a lot)
 Saving on staff costs
 Providing pan India visibility and reach
 Providing a wide product selection to customers
 Providing convenient customer access, etc.
 Have Returns as an integral part of doing business every day
 Have Returns as a transition one sees when products are sold online
Trust Factor – online vs offline!
OFFLINE BUSINESS ONLINE BUSINESSONLINE BUSINESS
Online and Offline Businesses come with their own benefits.
Let us compare how things work differently in the two:

13. The Opportunity in Returns!
Online and Offline Businesses come with their own benefits.
Let us compare how things work differently in the two:
OFFLINE BUSINESS ONLINE BUSINESS
So you see, Returns is a cost of business to gain customers’ trust!

14. Creating Awareness through Engaging Content!
Return & SPF policy An extensive list of FAQs Videos Slideshows Infographics
We have created comprehensive content that is available on
the Seller Learning Center to address your returns concerns

15. Online Returns – A Recap
Criticality of Returns for E-commerce Sales Growth!
 63% of online buyers look at the Return policy before making a
purchase
 If the retailer had a friendly & easy-to-understand Return
policy, ~50% of customers would:
 Shop more often with a retailer
 Would be more likely to recommend to a friend
Trends:
Online Shopping
Customer
Experience
Easy and
Hassle-free
returns is an
implicit
expectation
from
customers!
Source: Comscore 2012, PWC report- Total Retail 2015, BCG report- Returns: The ugly ducklings of retail, www.cmo.com, www.mycustomer.com , www.internetretailing.net, www.sdcexec.com, www.eurosciencemarketing.com, etc.
Your business needs to be built with returns as a Cost of Business

16. Online Returns – A Recap
Criticality of Returns for E-commerce Sales Growth!
 Returns has high value in driving customer loyalty
 Hassle-free returns and exchanges rank:
 Above average in terms of importance for shoppers
 Low in terms of customer satisfaction
Trends:
Online Shopping
Customer
Experience
Easy and
Hassle-free
returns is an
implicit
expectation
from
customers!
Source: Comscore 2012, PWC report- Total Retail 2015, BCG report- Returns: The ugly ducklings of retail, www.cmo.com, www.mycustomer.com , www.internetretailing.net, www.sdcexec.com, www.eurosciencemarketing.com, etc.
Your business needs to be built with returns as a Cost of Business

17. Online Returns – Trends
Global Trends in Product Returns:
Almost one-third of
all Internet sales gets
Returned
Online retail, in general, typically has higher customer
Return rates than average, because:
 The customer is not able to touch and feel the product
before they buy
 In offline stores, while returning, the store executive
typically acts as a barrier to spurious returns
33%
Source: Kurt Salmon, (Retail Consultancy Firm) findings, PWC report- Total Retail 2015, BCG report- Returns: The ugly ducklings of retail, www.cmo.com, www.mycustomer.com , www.internetretailing.net, www.eurosciencemarketing.com

18. In India, Flipkart is
already setting
Global Benchmarks!
Online Returns – Trends
Comparison of Global Return Rates and Flipkart’s Returns Rates:
~25% 10–15%
5-8%8-12%
Clothing, shoes and jewellery
where there's a fit and trial
element involved in the purchase
General merchandise such
as electronics, house-
wares, etc.
Market Global Rate Flipkart Rate
Source: Kurt Salmon, (Retail Consultancy Firm) findings, PWC report- Total Retail 2015, BCG report- Returns: The ugly ducklings of retail, www.cmo.com, www.mycustomer.com , www.internetretailing.net, www.eurosciencemarketing.com

19. Customer purchase decision based on Returns
Trends:
Relation of customer loyalty
with Return policies:
66%
of customers review an online
store's Return policy before making
a purchasing decision
Trends:
Reasons for Returns:
23%
due to the wrong item
being shipped
22%
due to difference in
product appearance
20%
due to a damaged item being
received
So you see
how Returns
improve
customer
loyalty
and
enables
more sales!
Source: www.trueship.com, Comscore 2012 report, PWC report- Total Retail 2015, BCG report- Returns: The ugly ducklings of retail, www.cmo.com, www.mycustomer.com , www.internetretailing.net, www.eurosciencemarketing.com, etc.

20. Thank You