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Should I opt-in to Meesho Returns Assurance Program?

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What is the Returns Assurance Program?

Returns Assurance Program is a new offering from Meesho for a select set of sellers
(eligibility mentioned below) to help them manage their customer returns better and cap*
the return% for payment of the return shipping fee for the respective month*

How does the seller benefit from the Returns Assurance Program?

  • Sellers will be informed of the maximum return % that they can have at the beginning of
    the month, giving them higher visibility on returns and enabling them to plan better
  • Seller is protected against the uncertainty of paying the excessive return shipping fee. Any
    return shipping fee for excessive returns beyond the upper limit will be borne by
    Meesho

Who is eligible to opt-in to the Returns Assurance Program?

All sellers who fulfil all the below-mentioned conditions are eligible to be a part of the
Returns Assurance Program:
● Seller should have successfully delivered (excluding returns and RTO) at least 100 orders
in the latest 12 months
● Seller should have successfully delivered (excluding returns and RTO) at least 10 orders
in the immediate previous month
● Seller should have completed KYC on the platform for at least 3 months

How does the Returns Assurance Program work?

At the beginning of every month, a seller would be informed of the capped return %
(maximum return% up to which they can be charged a return shipping fee) for the
respective month, through email
● The capped return % mentioned above will be the actual return % for the preceding
month (running a 15th to 14th cycle. Eg: for the month of March, the capped return % will
be the actual return % of orders delivered between 15th Jan and the 14th Feb)

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● In case the return % for the current month exceeds the capped return %, the seller will have
to pay the return shipping fee only on the capped return %. Meesho will bear the return
shipping fee on the excess returns.
● In case the return % for the current month is lower or equal to the capped return %, the seller
will have to pay a return shipping fee on the actual returns for the month

Do I have to incur any additional charge to participate in the program?

You will be charged a nominal opt-in fee of 0.9% of sale revenue (as appearing in the seller
panel) for the respective month to sign up for the Returns Assurance Program

Will the opt-in fee be charged on the orders delivered in the last month on which the return % is based?

No, the opt-in fee will be charged on the sale revenue (as shown above) for the current
month for which scheme has been opted for

How can I opt-in to the program?

You can opt-in to the program by clicking here. You can opt-in to the program (if not already opted in) any time before the last date of the month preceding the respective month. Eg: for the month of May, you can opt in before 30th April. Once opted in, the program will auto-renew itself every month unless explicitly opted out

Can I opt-out of the program if I have signed up by mistake?

Yes, you can opt-out of the program by clicking here any time before the 29th of the month
preceding the month for which you wish to opt-out. Eg: for the month of May, you can opt
out before 29th April. But once opted in, the program will auto-renew itself every month
unless explicitly opted out

How will the payment of opt-in fee/return shipping fee be settled?

Collection of opt-in fee: Opt-in fee (as shown above) will be adjusted fortnightly from
payments due for pending invoices
● Payment of return shipping fee: Return shipping fee (for returns over and above the
capped %) will be paid to the seller as a lump sum in the middle of the following month.
Eg: return shipping fee over and above the capped return % for the month of May will
be paid to the seller in the middle of June.
● Opt-in fee will be exclusive of GST. GST will be charged separately on the opt-in fee

Is it applicable to RTO (Return to Origin) as well?

No, the program is applicable only to customer returns. (where the product was delivered to
the customer)

Is the Returns Assurance Program applicable to specific catalogs/categories?

No, the program is applicable to all catalogs/categories and is at an account/seller level and
not at a catalog level.

Are we fixing the return% for all months?

No, return % cap will vary each month depending on the actual return% of the previous
month’s 15th to 14th cycle.

Will the opt-in fee be charged on the entire value of orders delivered or net value after deducting returns?

Opt-in fee will be charged on the entire value of orders delivered (including returns but
excluding RTO) for the respective month

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Is Returns Assurance Program the same as return unbundling or two price scheme that Meesho launched?

No, the Returns Assurance Program is a separate initiative to help sellers deal with return
fluctuations

If I operate in multiple categories with different return shipping fee applicable to them, which category would be considered for return shipping fees borne by Meesho?

Returns will be considered on a First-in-First-out (FIFO) basis. Meesho will bear the return
shipping fees on latest returns exceeding the capped return % for the respective month.

Will I be eligible to receive compensation under Returns Assurance Program if I have received return shipping fee through the claims process?

No, a seller will not be eligible to receive compensation under the Returns Assurance
Program for which return shipping fee has been reimbursed through claims.

Special Bonus (No-claim bonus)

What is the no-claim bonus?

A no-claim bonus is a special bonus paid to sellers who have showcased good
performance (consistent reduction in or maintenance of customer returns) for 3
consecutive months
● The objective of such a bonus is to incentivize sellers who display good behaviour

Who is eligible to receive the no-claim bonus?

A seller will receive an additional bonus under the Returns Assurance Program if they fulfil
the following conditions:
● Seller did not receive any compensation under the program for 3 consecutive months
for which they are a part of the program
● Seller delivered (excluding RTO) at least 10 orders in each of the preceding 3 months
● Seller did not receive any no-claim bonus in the immediate two preceding months

● Seller is continuing in the program in the month in which they are due to receive the no-
claim bonus

What is the rate of no-claim bonus?

A seller will be paid 20% of the opt-in fee recovered from them in the preceding 3 months as
part of the no-claim bonus subject to eligibility.

Illustration

Current month: March
Assumptions for the seller to be eligible to receive the no-claim bonus:
● Seller is enrolled in the program for December, January, February and March
● Seller did not receive any compensation under the program for December, January and
February
● Seller delivered (excluding RTO) at least 10 orders in each of December, January and
February
● Seller did not receive any no-claim bonus in January and February

Calculation of no-claim bonus:
– Cumulative amount recovered by Meesho under the scheme for December, January and
February: INR 100,000
– No-claim bonus rate: 20%
– No-claim bonus payable to the seller in March: 20% x INR 100,000 = INR 20,000

Are there any other incentives for a seller to display good behaviour (consistent reduction or maintenance of customer returns)?

A seller’s opt-in fee will be re-evaluated on a half-yearly basis (once in June and the
other time in December, starting from 2023)
● If a seller has shown low fluctuation in customer returns, then they will be moved to a
low-priced cohort wherein the opt-in fee will reduce. Similarly, if a seller shows high
fluctuation in customer returns, then they will be moved to a relatively high-priced
cohort wherein the opt-in fee will increase
● Any revisions regarding opt-in fee will be communicated to the seller by the Meesho
Returns Assurance Team

*Capped return%- Maximum return % up to which return shipping fees can be charged
*Respective month- Month for which the seller has opted in for the scheme

Reference:https://drive.google.com/file/d/1sNhyTxBkW_1a1TJcsf6M_4jsdrcUtRv9/view

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Sunil Kumar Sah @DigitalSunilSah 

Sunil is an E-commerce Seller, Blogger, YouTuber and Digital Marketer. He is a digital enthusiast and passionate about Online Selling. He loves sharing his knowledge and experiences on eCommerce in this blog and on his Hindi YouTube Channel “Ecommerce with Sunil” and the English Channel “Ecomsprint

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