What is RTO?

Also called Return to Origin, Return to origin

Short answer

RTO is a shipment that never reaches the customer and comes back to the seller. In Indian D2C it is common on cash-on-delivery orders. You still pay shipping both ways and often lose the product's handling cost.

Formula

RTO rate = RTO orders / shipped orders

Worked example

Illustrative: 1,000 shipped COD orders, 180 come back. RTO rate is 18%. If forward + reverse shipping is ₹160 and product cost is ₹220, each RTO costs about ₹380 before you even count the missed sale.

This term sits in the D2C operations hub. Use the related pages below for the full playbook.

Frequently asked questions

What does RTO mean for a D2C brand?

Where should I track RTO?

Start in the D2C operations guide and the linked calculators or product pages. MarQet BI is built around this operating problem.

Related terms and guides

GlossaryCODCOD means the customer pays when the courier delivers the order. It raises conversion in India and also raises RTO risk, because the customer has not prepaid.GlossaryNDRAn NDR is the courier's notice that a delivery attempt failed — customer unavailable, address issue, or refused. Some NDRs become successful reattempts; others become RTO.GlossaryReverse logisticsReverse logistics is the path of a product coming back: RTO, customer return, or exchange. It has its own cost, time and inventory impact.GlossaryNDR-to-RTONDR-to-RTO is the share of failed delivery attempts that eventually return to the seller instead of being redelivered. It is the lever operations teams work after the first attempt fails.GuideHow to Reduce RTO on COD Orders: A Playbook for Indian D2C BrandsA practical playbook to reduce RTO (return to origin) on COD orders in India: measure RTO properly, COD confirmation, address quality, prepaid incentives, partial COD, NDR handling and courier allocation.ToolRTO cost calculatorEstimate monthly RTO loss from COD share, RTO rate, shipping both ways and product cost. Built for Indian D2C brands shipping with Shiprocket and similar couriers.GuideD2C Logistics Automation Software: What to Automate and Which Tools to UseWhich parts of D2C logistics to automate (courier allocation, NDR, COD verification, tracking updates, RTO analysis) and the software categories Indian brands use for each.

MarQet BI

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