Free tool
RTO cost calculator.
Return to origin is a direct margin leak. Enter your own numbers to see what returns cost each month in freight and handling alone, before counting a single lost sale. The defaults are typical for a mid-size Indian D2C brand; replace them with your figures.
Your numbers
Inputs
Assumptions
What it costs
Your RTO leak
- RTO parcels per day
- 300
- Direct cost per RTO parcel
- ₹190
- Monthly RTO leak
- ₹14,82,000
- Annual RTO leak
- ₹1,77,84,000
What healthy looks like
At a 15% RTO rate, the same order book returns 180 parcels a day and leaks ₹8,89,200 a month. Getting from your rate to 15% recovers ₹5,92,800 every month.
This total counts freight and handling only. The lost sale itself — your margin on the average order value — and 10–15 days of blocked stock per returned unit are not included. The true number is higher.
What actually moves this number
Three levers do most of the work. Confirm COD orders on WhatsApp in the first five minutes, before dispatch — fake and impulse intent cancels itself. Verify addresses at checkout so parcels do not ship to undeliverable pin codes. And act on every NDR the same hour: each return starts as a failed delivery with a short recovery window.
Read the details: COD confirmation on WhatsApp · How to reduce RTO in e-commerce in India · NDR management: recovering failed deliveries
Free 2-day process review
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