At Rs 11, 754 crore, the combine losses of ecommerce majors Flipkart, Amazon and Snapdeal is almost equal to the annual budget of the Indian Space Research Organisation (ISRO).
“To be able to curtail losses, it is critical for these organisations to understand the reason behind these increasing losses. If a rise in product returns is the primary reason for increasing costs and in turn increasing losses, then there is cause for worry. Product returns at an online seller should not exceed 10% of sales. Anything beyond that would result in even bigger losses to come,” says Anshoo Nandwaani, cofounder, Greyhound Knowledge Group.