Info-tech

E-com firms burdened with returned merchandise can take a leaf out of strategy followed by Styched

LN Revathy Coimbatore | Updated on February 28, 2020

Coimbatore, February 28

While e-commerce companies report resounding response to ‘Big/ Special Day Sale Offers’ not much is ever said of the merchandise that are returned for various reasons.

Industry insiders however, put the return rate at 30 per cent. “The package is returned undelivered when the address is not validated, due to missing pincodes, delay in delivery or when there is a mismatch between the order and the dispatched stuff. We analysed and created an AI-driven (Artificial Intelligence) back-end to tide over such issues,” says Soumajit Bhowmik, Co-founder and CEO of Styched, a fast fashion e-commerce brand

This Bengaluru-headquartered fast fashion e-commerce start-up reports less than 7 per cent return rate.

Explaining the strategy behind this low return rate, he said, “As soon as we take an order, the backend team would validate the address, look up the Google map, check the past history of the customer with respect to order placement and returns, and other related details.

“We have tied up with partners for delivery management service and for managing the inventory. We have an extensive fabric print set-up in-house, but production of the garment is done only on demand. We create styles and upload it on our site. Each of these styles can be made at the backend within a very short time.

“We have a dedicated vendor for each category and style.

“With two websites and one app, the key differentiator to the brand’s profitability is the back-end, which serves as an interface between the website and the group consisting of logistics, production, customer service, commercials, planning and analytics.”

“The entire production process is automated and scalable,” he added.

Within seven months of commencement of operations, the brand began clocking over 150 orders a day. It is now gearing up to scale this to 400 to 500 orders a day.

“That’s when we will look to raise the second round of funding,” Bhowmik told BusinessLine.

Explaining the importance of delivery service, he said, “It is the backbone of the present day e-commerce run. When there is no genuine partner on board, it back-fires on the brand.”

Styched, according to Bhowmik has inked exclusive contracts with a number of brands. “Our vision is to keep growing as a brand, introduce new categories and go global. We’ve just registered with the UAE,” he said.

Published on February 28, 2020

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