Daraz Spends Up To $50,000 Every Month in Customer Refunds

The leading e-commerce platform in Pakistan, Daraz, spends up to $50,000 monthly on customer refunds. As a strong believer in a customer-first strategy, Daraz takes another step to ensure consumer satisfaction.

In the fast-paced and dynamic business landscape, customer experience is a key brand differentiator – even more so than price or product. Recognizing its importance for consumers and businesses alike, the e-commerce giant has taken multiple initiatives, such as building a quick delivery mechanism and offering numerous payment options.

Ahmar Zohaib Syed, Chief Customer Officer, Daraz, said,

“At Daraz, customer experience does not reside with CS department only but we continue to cultivate the culture that every department at Daraz puts their best to ensure customer satisfaction. We live by the philosophy stated by Bill Gates once ‘Your most unhappy customers are your greatest source of learning.’ We ensure that the source is tapped, issue is understood and a solution is laid out that guarantees that no other customer has to face the same issue again.”

The brand’s commitment towards providing a positive customer and seller experience is what has resulted in its sustained growth. Today, the company’s monthly user base of 15 million contains plenty of loyal brand advocates. According to research conducted, 86% of online shoppers say customer experience is a top priority for them, and to live up to our brand promise of customer commitment, Daraz has a strong purchase protection policy as well as post-purchase assistance to build a loyal customer base.

Although the company offers specialized training for sellers through Daraz University, sometimes it is possible that buyers may not be happy with what they have purchased online. To curb this problem, Daraz collaborates with its sellers to improve performance based on the defined metrics, as well as it commits and guarantees its customers a resolution at the earliest.
On top of that, Daraz has a seamless return policy. The platform takes ownership to resolve customers’ complaints, for which reason Daraz spends $50,000 monthly in customer refunds to ensure the customer is satisfied immediately based on metrics. However, to ensure that sellers do not repeat the same mistakes, the e-commerce brand has strict accountability checks in place for which actions are taken separately.

Moreover, at a time where the COVID-19 pandemic has surged online purchases, it is pertinent that shoppers trust the online marketplace. With 11.11 just around the corner, Daraz is constantly monitoring sellers to ensure quality standards are met in terms of return rate, instant message response rate, and ship on time metrics. Simultaneously, the brand recognizes the customer return experience as a crucial part of the e-commerce journey, which is why it’s investing heavily to ensure the customer’s returns process from initiation to refund processes is as smooth as possible.

By keeping customers central to the business, especially during months when orders see the growth of 3X, Daraz aims to catapult the growth of the e-commerce industry by making the online marketplace a trustable, safe, and accessible space.