Delhivery’s AI-powered RTO Predictor Helping Businesses to Reduce Logistics Costs

Delhivery Limited, India’s leading integrated logistics provider, announced today the success of its AI-powered RTO Predictor in significantly reducing return costs for D2C brands. This solution has already empowered over 4,800 brands, including notable names like Heads Up for Tails, Healthkart, W for Woman, and Be Minimalist.

Launched in 2024, the RTO Predictor is available across all sales channels (Shopify, WooCommerce, etc.) for any D2C brand, regardless of their chosen shipping partner. Brands can even integrate it during checkout to hide COD options or charge higher shipping fees for customers with a predicted high risk of return.

In India, where COD orders exceed 60% of e-commerce transactions, returns significantly impact businesses. Delhivery’s RTO Predictor tackles this by helping brands reduce returns by up to 20%. Recognised as India’s preferred D2C logistics provider by Redseer, Delhivery continues to expand its value-added services through its integrated digital shipping platform, Delhivery One.

“Dellhivery’s RTO predictor uses machine learning to assess the risk of return and non-acceptance of delivery that sellers face by mining the trove of data already available from over 2.7 billion delivered shipments since inception, our nationwide coverage, and location intelligence solutions. This enables us to predict customer behaviour with far higher accuracy and equip our clients with valuable insights on customer intent on their COD (cash on delivery) orders,” said Nikhil Vij, Head of Product at Delhivery.

“With Delhivery’s RTO predictor service, which we used during the pilot phase, we were able to take quick calls to verify COD orders and take necessary actions, making it easy to understand the customer profile. This has helped us reduce our overall RTO from 8.2% to 7.4%, resulting in increased conversions and lower logistics costs,” said Sugam Arora, Head of Logistics and Customer Experience at W for Women.

“The one thing that hurts a D2C brand the most is RTO. Delhivery’s RTO predictor helped us navigate this journey of RTO reduction with better conversions,” said Harsh Gupta, Supply Chain Head at Minimalist.

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