RTO (Return To Origin) Cost Calculator

About this tool

In India, MENA and parts of LATAM, COD orders refused at delivery can run 20–40% of total orders, and most stores don't track the full cost. This tool layers outbound + return shipping, packaging, ops labour and unsellable returns into a true RTO cost per order and a monthly bleed total.

Where RTO actually matters

RTO is largely an India / MENA / parts-of-LATAM problem driven by cash-on-delivery culture. In India, COD orders refused at the door regularly hit 25–40%; for prepaid orders the rate is closer to 3–5%. Shifting your order mix toward prepaid is the highest-leverage RTO lever — every percentage point of mix you can push to prepaid drops RTO cost almost linearly.

Proven RTO-reduction tactics

• • Require partial COD prepayment (₹10–₹50 token) — drops RTO 30–50%
• • WhatsApp / IVR order confirmation before dispatch
• • AI risk scoring (Shiprocket Engage, Razorpay Magic, GoKwik) to flag risky orders
• • Cap COD to prepaid AOV — restrict high-AOV orders to prepaid only
• • Block phone numbers / addresses with 3+ prior refusals
• • Discount aggressively for prepaid (3–5% off works)