How to handle Order Returns on MyDreamStore and be Profitable!

Reduce Cash on Delivery Order Returns

Hello fellow campaigners,

So, recently I am seeing lot of posts, comments on MyDreamStore 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, its 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 really lazy in doing their jobs, specially 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, customers 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 any one 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 loose 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 realised, I was actually doing more damage to the ROI this way.

Now, keep in mind – these problems are not specific to MyDreamStore. Its across the industry. Every e-commerce website including Flipkart, Amazon faces this problem.

Initially when I started with MyDreamStore in Nov-Dec, even I faced lot of returns –

MyDreamStore Return Orders Nov

MyDreamStore Returns Nov-Dec

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 behaviour 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, people who are not so passionate about the designs 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 its 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 focussed 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, Bhubaneshwar, 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.

MyDreamStore Intersect targeting

Facebook Ad Intersect with Online Shopper

 

Solution # 7 – Most Important – Stop Wasting Time in Finding Faults

Most imp tip – Stop worrying about the faults and shortcomings of MyDreamStore 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 utilised for increasing sales and optimising 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 utilising their entire energy on MAKING MONEY FROM WHATEVER IS WORKING and Learning!

Here is my return rate right now –

MyDreamStore March Order Returns

MyDreamStore March Order Returns

My Suggestions for MyDreamStore

Suggestion # 1 – Delivery time

Right the current dispatch time is max 9 days which is not bad at all. I am sure MDS is working on reducing it further. When it gets reduced further, it will definitely reduce returns.

Suggestion # 2 – May be Ban the Bad Customers

I know entire e-commerce industry is looking for a solution to this. But just a thought, if some kind of penalty be put on Bad Customers like banning them from next purchase or sending them a warning email if they do not accept the courier

Suggestion # 3 – Showing % of COD and Prepaid Orders to Campaigners

I am not sure if its feasible, but if the campaigner comes to know the % of orders which are COD and Prepaid in their admin panel, they can may be analyse the campaign and take a decision whether to scale it kill it before spending lot of money.

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 mubaid@tshirtprofitacademy.com

or follow me on Twitter – @mubaids

Talk to you soon,

~ Mubaid

About the author

Mubaid Syed

Entrepreneur, Digital Marketer and Growth Hacker. Founder of 2 successful startups and an Online T-Shirts Brand which sold more than 100,000 t-shirts within 2 years. Love experimenting with new marketing strategies. Love to help others and inspire them to achieve their goals!

25 comments
Yuvraj

Mubaid, thanks for this. I am researching my first campaign and the returns part had me worried. Your explanation kinda nails it.

Reply
Snj

Again Thanks Bro !

Amazing Post and Tips!

Lookign forward for video turorials 🙂

Reply
Gagan Dhakar

Hi Mubaid, how to narrow down audience? One suggestion you gave is Online Shopping.
So if I am targetting a particular niche X. Then X interset with “Online Shopping” intersect with “Metro Cities” + age range.
Does it look good? Or what do you suggest?

Reply
    Mubaid Syed

    Yes Gagan,

    Your Interest + Online Shoppers
    Cities selected -> Metro
    Age Range -> As per your choice

    Reply
Gerald

Amazing post..from your friend in Kenya..you’ve clarified for me issues concerning tier one cities

Reply
Dinesh Khobragade

Nice post Mubaid,
Just want to highlight on 1 thing :-
I myself work in a logistics company in Technology department. Whenever there is any issue from logistics side (like delay in delivering product) which may lead to loss for client, Clients normally charge logistics companies with fine which is equal to cost of product.
Not sure if MDS charges their logistics partners.

Reply
Gaurav Jhamb

Thanks a lot Mubaid, learning a lot from your success stories. Can you even publish a case study from one of your previous campaign from searching to designing to getting your first sale to scaling. It would be better if you can do it in a video.
By the way thanks for helping out. God bless man…

Reply
    Mubaid Syed

    Thank you Gaurav.. 🙂
    Glad the tutorials are helpful.
    I have already done a case study of one of my campaigns here – http://www.tshirtprofitacademy.com/campaign_casestudy

    I will do a Video Based Case Study as well very soon.. 🙂

    Reply
      Gaurav Jhamb

      Hi, Thanks for your reply…
      The link you just shared asks me for my email ID. Even when i supply the same, I dont get any mail on my ID. Tried everywhere looking at my inbox, promotions and spam folder. I think there is something wrong. Can you provide me with a direct link to the case study..

      By the way thanks for so much help..

      Reply
    Mira

    That’s a smart answer to a tricky qustieon

    Reply
Ganesha

Hi, please reply questions asked on your mail.

Reply
Sharon Scott

Thank you for this lesson. I believe it will be useful for sure. I am looking for a breakthrough with my campaigns. Keep up good work!

Reply
kunal

Thanks Mubaid,That was a hell lot of learning.Please Throw some light on scaling.How to scale from 10 to 1000.

Reply
    Mubaid Syed

    Hello Kunal,

    Glad the article was useful to you.. 🙂

    Scaling is a very big topic. There are lot of scaling methods you can adopt.
    Few of them are –
    Retargeting the visitors
    creating lookalikes of visitors
    creating lookalikes of buyers

    I will try to do a detailed video on this soon.. 🙂

    Reply
aiman hussein

Hi i have watched some of the face book youtube videos you have done and i love them
i am wondering if you have made any new videos to share or the course
i am very interested in learning how to use face book as a marketing change for any products

Thanks you

Reply
    Mubaid Syed

    Glad you loved them Aiman.. 🙂

    I am planning to launch a detailed course on the same. It will cover everything from absolute basics to advanced stuff. Whatever has worked for me I will be sharing. Hoping to launch it very soon.

    Reply
Farzana

Great insights Mubaid, thank you for this article.

Reply
    Mubaid Syed

    Thanks a lot. Glad you loved it.. 🙂

    Reply
Jennifer Rao

This article is worth more than any ecom course out there, just keep it up, You’re a gentle soul.

Thanks

Reply
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