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How fake orders hurt ecommerce businesses like ours and India in general?

by Shipy Fashionwear on April 06, 2021

To begin with, a suspicious order is placed by a customer or a buyer or a bot with a shady address, questionable contact information but probably a genuine Gmail/Email address. Our systems filter out such orders and alert us before we ship them. Most of the fake orders are Cash on Delivery where the person or miscreant has no intention of paying for the order and will most probably miss calls from the delivery executive.

Imagine if you or one of your family members or close friends are bold enough to start an online business like an ecommerce store or a restaurant for online food ordering. You put all or most of your money into it because you believe in your idea, capability and dream. When you reach out to customers, many people order from you and do not pay. They cancel their orders midway or when it reaches their city or simply refuse to accept them. Can’t be good right?

Below is an example in numbers

Cost to you: ₹500

Delivery Fee: ₹50

Sale Price: ₹700

Now you expect a ₹700–₹550=₹150 profit. But you just had a loss of 500 instead. When it piles up, it crushes your dream.

 

How Fake Orders hurt us?

As a new company, a startup, our fuel is our savings. We have worked hard in different jobs and collected this money that we are putting in our business. We use this well-earned money & savings from our jobs to pay the bills and also provide free shipping to our customers. We keep our profit margin at the lowest to provide a good experience to the buyer. When the buyer returns our product citing an issue, it is a complete loss to our or any business but it is understandable and accounted for. But what about fake orders? Our savings, our money that we earned by working hard on our jobs to work hard on this business to acquire, design, print, quality check, store, ship the products is being completely wasted. This hurts us and a lot of other businesses. We still have to pay our designers, delivery partners, accountants and other employees. So, be a nice person and don’t hurt us or any other business for that matter. As you deserve a good experience, we deserve a genuine customer placing a genuine order with a good intention.

 

How fake orders hurt India?

When an order is placed — the product is readied, then queued for printing, then printed, then queued for quality check, after the qc has passed, it is picked up by our delivery partner and is Air-delivered to the customer’s city. This involves money and manpower. When that order is fake, it is returned to us, costing us the delivery charge and an RTO charge from the delivery company. Plus, it takes space in airplanes, trucks, bags, however miniscule and adds weight, costing additional fuel (petrol & diesel). 1 order returned to us, costs around INR 100 in losses, hours of manpower lost & burnt fuel. Now imagine around 100 such orders every month for our store. Now imagine what would thousands of fake orders each day cost multiple businesses, the wasted manpower and the fuel burnt. Small businesses suffer a lot due to such orders because we have limited capital to begin with. You cannot compare an online store to Amazon, they have millions of dollars to spare and although it seems to buyers that it is a joy ride to shop and return on Amazon, it is the complete opposite of that for Sellers.

 

How can you trust sellers?

There are many ways for you to establish trust on the seller — through their website/store, facebook page, instagram profile or by verifying them through site seal badges like Norton or Geotrust etc. But it is not the same for the seller. We sometimes have to blindly ship orders that we know are highly risky and could turn out to be fake.

So, place genuine orders, not just on our store but anywhere. Our businesses are running on our money & manpower & we do not want to waste that for nothing.

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