Reducing RTO Orders: Embracing PayLater as a Solution for E-commerce

Reducing RTO Orders: Embracing PayLater as a Solution for E-commerce

In the fast-paced world of e-commerce, businesses are facing unprecedented challenges. Increased competition is squeezing profit margins, and operational expenses are skyrocketing with costs related to technology, manpower, and shipping. Among these, Return to Origin (RTO) orders—those undelivered and returned after being refused by the customer—pose a significant financial burden, especially for orders made through Cash on Delivery (COD).

The Costly Impact of RTO

For many e-commerce businesses, RTO orders represent the most loss-making aspect of their operations. In some extreme cases, sellers report RTO rates as high as 80-90%. The costs associated with these returns include wasted shipping fees, inventory holding costs, and the operational overhead of managing returns. This not only erodes profit margins but also complicates logistics and inventory management.

Enter PayLater: A Game-Changer

Amidst these challenges, financial institutions like banks and NBFCs have introduced a revolutionary product—PayLater. This innovative payment solution is now being offered by nearly every payment gateway, providing a seamless and interest-free way for customers to purchase goods online.

Key Features of PayLater

  • No Immediate Payment Required: Customers can buy products without making an upfront payment. This deferred payment option allows them to receive the product first and pay later.
  • Interest-Free: Customers are not charged any interest if they pay back within the stipulated period.
  • No Documentation Needed: One of the standout features of PayLater is its simplicity. Customers do not need to provide extensive documentation to use this service.

How PayLater Reduces RTO

The introduction of PayLater has significantly curtailed the reliance on COD, thereby reducing RTO orders and spam orders. Here’s how:

  • Enhanced Purchase Commitment: When customers opt for PayLater, they have a financial obligation to settle the amount within a certain period. This reduces the likelihood of order refusals, as customers are more committed to the purchase compared to COD orders.
  • Improved Cash Flow for Sellers: Unlike COD, where the seller waits until the product is delivered to receive payment, PayLater ensures that the payment process starts immediately, albeit deferred. This improves cash flow and reduces the risk associated with undelivered orders.
  • Reduced Operational Hassles: With fewer RTO orders, businesses can streamline their operations, focusing more on sales and customer satisfaction rather than managing returns and logistical nightmares.

PayLater in Practice: The Case of LazyPay

As per my experience in the market, there are many financial apps providing PayLater facilities and charging nominal ROI interest rates. One such app, LazyPay, has become popular by offering instant loans and an interest-free credit period of up to 15 days for Buy Now Pay Later purchases. During this period, customers can enjoy the flexibility of making purchases without incurring any interest charges if they pay back the amount within the specified timeframe. LazyPay offers instant loans as low as Rs.500/- with an approval success rate of up to 90%, even for buyers with a low finance credit score. This enables customers to correct past financial mistakes and improve their credit score.

How to Increase Your Credit Score with LazyPay

Using PayLater services like LazyPay can positively impact your credit score. Here’s how:

  • Timely Payments: Ensure that you pay back the amount within the interest-free period. Timely payments reflect positively on your credit history.
  • Manageable Loans: Start with small loans (as low as Rs.500/-) to build a track record of responsible borrowing and repayment.
  • Credit Mix: Using different types of credit, such as revolving credit from LazyPay, can enhance your credit profile.

By maintaining a good repayment history with LazyPay, you can correct past mistakes and gradually improve your credit score. This can open doors to better financial opportunities in the future.

LazyPay Eligibility Criteria

To get approved and increase your LazyPay limit, check your eligibility against the following criteria:

  • Age: You must be between 22-55 years of age
  • City: All major Tier I and Tier II cities
  • Employment: Salaried
  • Residency: Resident of India

Required Documents

It’s a completely digital process, so no documents are required. However, you may want to keep the following details handy:

  • PAN number
  • Bank account number & IFSC
  • Net banking may be required for auto-repayment

To use LazyPay, visit your favorite website like, find the LazyPay payment option under the Pay Later or Cardless EMI category, and confirm your purchase with one tap. First-time users will be asked to verify their mobile number with an OTP. Start your PayLater journey with Patoys quality products and enjoy hassle-free shopping.

For more information, please visit the LazyPay official website.

The Future of E-commerce Payments

The PayLater option is proving to be a win-win solution for both consumers and e-commerce businesses. For consumers, it offers the flexibility to manage their finances better without the pressure of immediate payment. For businesses, it drastically cuts down on the losses incurred due to RTO orders.

As competition intensifies and operational costs continue to rise, adopting innovative financial products like PayLater can provide a much-needed edge. By reducing the dependence on COD and minimizing RTO orders, businesses can safeguard their margins and ensure sustainable growth in the challenging e-commerce landscape.


In today's highly competitive e-commerce market, controlling costs and improving efficiency are paramount. The surge in RTO orders through COD has been a significant obstacle, but the advent of PayLater offers a practical and effective solution. By embracing PayLater, businesses can mitigate losses, enhance customer satisfaction, and navigate the complexities of the modern market with greater ease.

E-commerce businesses must stay ahead of the curve by integrating flexible payment options like PayLater into their checkout processes. This not only helps in reducing RTO rates but also positions them as customer-centric and forward-thinking, ready to meet the demands of the evolving digital marketplace.

Happy Shopping!

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