25% of online orders returned: Study

NEW DELHI: Predatory pricing, along with free shipping and generous return policies have helped India's fledgling online retail industry woo millions of customers. But behind the boom lies a growing concern: One out of every four products sold online gets returned, a study by logistics firm Gati showed.

E-tailers are trying hard to curtail the extra cost. "Nearly four lakh shipments are delivered across the country every day, 25% of them are returned, making it a growing concern for e-tailers," says Harshall Bhoi, head of e-commerce operations at Gati.

While a Flipkart spokesperson refused to comment, Vikas Ahuja, chief marketing officer at fashion retail website Myntra, acknowledged the concern. "We are in an industry-building phase currently, and see returns as an investment in building customer experience and trust," he says.