E-commerce enabler GoKwik says over 3/4th of pre-festive D2C sales on came from Tier 2,3 cities
GoKwik, leading and fastest growing e-commerce enabler in India solving shopping related woes for hundreds of D2C brands, said that over 77% of the total orders placed on the GoKwik network came from tier 2 & 3 cities in the pre-festive sale period (July 2022- Sep 2022).
The D2C brands on the network also posted a 29.4% growth in gross merchandise value (GMV) in this period compared to the previous quarter despite concerns over macro-economic slowdown and rising inflation.
The surge in sales came at a time even as major marketplaces such as Amazon and Flipkart had launched their mega sale events prior to Dussehra.
Conversion rate for D2C brands on the GoKwik network was as high as 33% similar to previous quarters, despite 20% higher order volume in the pre-festive sale period. Cash on Delivery (COD) remained the most preferred mode of payment with a 30% jump in GMV from COD orders in the pre-festive period compared to previous quarter. The share of COD orders to prepaid also remained as high as 75%. This indicates that “Bharat” still shops on COD when it comes to shopping online.
Higher COD orders usually increase the chances of Return to Origin (RTO) rate, i.e., rate of orders returned before delivery however, GoKwik managed to contain the RTO rate at 25% despite a 21% jump in COD orders in the pre-festive sale period over the previous quarter.
“Containing the RTO rate was possible since GoKwik’s RTO suite could identify high risk transactions that increased by 5% in this sale period and take necessary interventions to stop these orders from resulting in returns,” said Chirag Taneja, Cofounder and CEO of GoKwik.
The company, founded in November 2020 by Chirag Taneja, Ankush Talwar and Vivek Bajpai, has partnered with 500+ brands such as The Man Company, Boat, MamaEarth, Noise, Neeman’s, Fire-Boltt, Man Matters among others, to help improve their conversion rates and boost profitability, while significantly reducing their RTO.
About GoKwik
GoKwik was founded in 2020 with one simple mission, to democratize the shopping experience to increase GMV realization for e-commerce businesses. It is an e-commerce enablement company focusing predominantly on boosting conversion rates across the e-commerce funnel. It uses AI/ML technologies to solve hard-hitting problems like returns on CoD orders, checkout conversions & more. GoKwik’s checkout and UPI solutions improve checkout conversion rates ensuring higher gross merchandise value (GMV) realization and reduced marketing customer acquisition cost (CAC).
It is helmed by Chirag Taneja (CEO), Vivek Bajpai (CTO), and Ankush Talwar (Chief Data Scientist). GoKwik’s team has deep knowledge in e-commerce with people having previous experience in Flipkart, Razorpay, Swiggy, Myntra, Nykaa, PayU, McKinsey and more.
The company is backed by Matrix Partners India, RTP Global, Sequoia Capital, Think Investments and marquee angels.
