This article explains how to handle returns on My Dream Store and to be profitable . This article was written by Mubaid. It gives you a complete overview about logistics system. He also gives more solution on how to reduce returns.
Following are the own words of Mubaid….
Hello fellow campaigners,
So, recently I am seeing lot of posts, comments on My Dream Store Campaigner Connect Facebook Community regarding the Return of Orders.
As we all know, the campaigner is paid for only the orders which are delivered to customer successfully. So, if there are lot of Returns, it can harm your ROI a lot.
Now, looking at the current negative comments in the community and growing concern among the fellow campaigners, I thought I would share how I personally handle the curious case of Returns.
I have run my own t-shirt company (www.LazyNinja.in) in past. So, I think I can give an unbiased opinion about this.
Let’s first understand WHY RETURNS happen and later we will see how we can avoid them.
Culprit # 1 – Cash On Delivery (the biggest problem)
If people paid online, there will hardly be any returns.With COD, it’s very easy for people to just Not Accept the order without any consequences.
Culprit # 2 – Delay in Delivery
If there’s a lot of delay, people lose interest in the design. Period.
Delay can happen from 2 parties, 1) MDS – if they delay the production and dispatch late
2) Delay in delivery by courier companies.
Culprit # 3 – Courier Companies
Courier companies not doing their job properly is the 2nd biggest reason for returns. I have tried almost all courier companies in India from DTDC, Fedex, BlueDart to Maruti Couriers for LazyNinja.
Trust me on this, they are really lazy in doing their jobs, especially delivery boys.
When they have hundreds of orders to deliver, they always give priority to Prepaid orders and lot of times they don’t even try to deliver COD orders and mention the status as ‘Door was Closed’ or ‘Phone was not picked up’.
Culprit # 4 – Bad Customers or Impulse Buyers
Lot of times, customer’s place the order just for fun or on impulse. They see something, like it, immediately click 2-3 buttons and place the order in COD as they know it has no consequences and they can just NOT ACCEPT it when it arrives.
Lot of times, when courier arrives, customer don’t have cash in hand or they are busy in some work, they simply refuse the order and it comes back as return. There is nothing MDS or Courier Company or anyone can do about it.
Culprit # 5 – We, the Campaigners
Yupp. Lot of times, knowingly or unknowingly we do things to increase our sales which contributes to lot of Returns.
E.g. To increase easy sales, lot of people write on their ad copy –
BUY NOW, PAY LATER WHEN YOU GET IT IN HAND
And that’s exactly what customers do. They ‘Buy Now’ thinking what’s the harm and later if they lose interest or if they are busy, they just don’t accept it. And there is nothing you can do about it.
Even I have done the same mistake initially and was be very happy seeing more sales. But later realized, I was actually doing more damage to the ROI this way.
Now, keep in mind – these problems are not specific to My Dream Store. It’s across the industry. Every e-commerce website including Flipkart, Amazon faces this problem.
Initially when I started with My Dream Store in Nov-Dec, even I faced lot of returns –
As you can see most of the reasons of the returns are OUT OF OUR HANDS.
We cannot change how courier companies operate.
We cannot change the behavior of Bad Customers
We cannot force people to not choose COD.
So, let’s focus on what WE CAN DO.
Solution # 1 – Encourage Prepaid Payment
Stop writing Ad copies like – ‘Buy Now, Pay Later’.
Instead write something like ‘PAY ONLINE – GET Rs 50 Cash Back immediately.’
Seduce people to pay online. Trust me. Its upto you. Be creative in writing your ad copy and t-shirt description.
Here, use some of successful ad text / t-shirt description –
"PAY ONLINE – GET Rs 50 Cash Back Immediately. Rs 50 Cash Back Immediately Available for 7 days when you pay online.
Pay with Confidence. 15 Days Money Back Guarantee!
Double Offer – Rs 50 Cash Back for Online Payment + 15 Days Money Back Guarantee"
Solution # 2 – Choose Highly Passionate Niche
Return rate varies a lot from Niche to Niche.
Birthday, Celebrity, Relationships niches have higher return rate.
Hobbies, Professions, Passions have lesser return rate.
This you will learn from experience only.
Solution # 3 – Don’t do Broad Targeting
While running Facebook Ads, make sure the targeting is highly laser focused.
If the targeting is too broad, peole who are not so passionate about thedesigns might also buy on impulse.
Learn how to laser target while running ads.
Solution # 4 – Try Launching Only Prepaid Campaigns
I have almost stopped launching COD campaigns. I only do prepaid campaigns. Am I able to do good conversions in Prepaid? Absolutely.
I agree it’s a little hard compared to COD option. But whatever I am getting with prepaid campaigns is DEFINITE. No Returns, No Impact on ROI and most important – Immediate Payout within 3-4 days. You don’t have to wait for a month for everything to get delivered. If your targeting is bang on, highly focused and your niche is passionate, Prepaid campaigns convert as good as COD ones.
So, if you are already putting efforts in making your campaigns successful, why not put a little more efforts in targeting and audience research and launch only prepaid campaigns? Tip – If you are not sure, you can launch a COD campaign first and test the market. If you are making good sales, simultaneously you can launch a Pre-Paid campaign with same design and enjoy sales from there.
Solution # 5 – Target only Metro Cities
In my experience, most of the cancellations and returns are from Tier 2, Tier 3 cities.
So, whenever you are launching Facebook Ads, don’t target it to entire INDIA first.
Target only metro cities. And while scaling, you can expand to entire India.
Here are the cities I target for all my ads –
Chandigarh, Bhubaneswar, Delhi, New Delhi, Noida, Gurgaon, Mumbai, Navi Mumbai, Pune, Hyderabad, Bangalore, Mangalore, Goa, Kochi, Chennai.
Solution # 6 – Intersect with Online Buyers
This is a GOLDEN TIP guys.
This is just to be double triple sure. Suppose you are targeting Roger Federer.
While creating Facebook Ads, along with selecting you Interest, do an intersection with ONLINE SHOPPERS. This is a great way to narrow down audience who love Roger Federer and as well as SHOP ONLINE.
Of course this will reduce the overall size of audience, but the audience selected this way will be highly targeted for our purpose. We are just eliminating the people who don’t shop online.
Check the screenshot on how to do the same.
Solution # 7 – Most Important – Stop Wasting Time in Finding Faults
Most imp tip – Stop worrying about the faults and shortcomings of My Dream Store or any other platform. No platform is perfect in every way. You think only you are worried about returns? I am sure, MDS is even more worried about it than us because they incur huge losses when a single t-shirt get returned.
The cost of manufacturing it, printing it, couriering it, again return courier cost and even after that, that t-shirt become dead stock which cannot be sold anywhere. I am sure they are trying their best to avoid it.
So, we need not focus on it. Instead, we should focus on –
How to launch more campaigns?
How to make campaigns successful?
How to scale from 10 sales to 1000 sales?
How to learn from our mistakes?
How to increase the ROI?
How to find new niches and new designs?
How to make people to Pay ONLINE?
The amount of time we are spending in going to Facebook, posting in Campaigner Connect Group, Waiting for reply, then again replying on comments, explanations, numbers, percentages etc. – all this can be utilized for increasing sales and optimizing our ads to increase ROI.
That’s why you won’t see most of the top campaigners debating on percentages or numbers or why this is not working, that is not working.
Instead, they are utilizing their entire energy on MAKING MONEY FROM WHATEVER IS WORKING and Learning! Here is my return rate right now –
That’s it for now friends..
Hope this post was useful in some way.
Trust me, use the techniques I mentioned above and you will save a lot money..
Feel free to comment below or write to me on firstname.lastname@example.org
or follow me on Twitter – @mubaids
Talk to you soon,
About the Author:
Mubaid is one of the top campaigners of My Dream Store and is the founder of online t-shirts brand LazyNinja.in and have been selling t-shirts for past 2 years now (1 Lakhs + tees sold). He started selling on other platforms in Nov 2015 and has sold 20,000+ tees in just 2 months! He loves digital marketing and keeps experimenting with different marketing strategies. Crazy about Video Games, Anime.