For Online Sellers

RTO Loss Calculator: What Undelivered COD Orders Cost You

Free tool · Updated October 2, 2026 · By CouponTalk · Reviewed by CouponTalk Expert Reviews on

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Quick answer

Every RTO (an order returned to you undelivered) costs forward shipping, often return shipping, packaging and sometimes damaged stock, with no sale. Cash-on-delivery orders in India often have RTO rates of 20–30%, against under 5% for prepaid. At 1,000 orders a month with 20% RTO and ₹120 lost per RTO, you lose ₹24,000 a month.

How to use this calculator

  1. Enter monthly orders and your RTO rate from your courier or marketplace report.
  2. Enter what each RTO costs you in shipping and packaging.
  3. Add the share of RTO units that come back damaged.

Formula

Loss per RTO = Forward shipping + Return shipping + Packaging + Product cost × damaged %

Monthly RTO loss = Orders × RTO rate × Loss per RTO

Fees and rates checked on 2 October 2026. Marketplaces revise rate cards often, so confirm current figures in your seller dashboard before you set prices.

Frequently asked questions

What is RTO in e-commerce?
Return to Origin: an order the courier could not deliver (customer refused, unreachable or wrong address) and sent back to the seller.
How can I reduce RTO?
Confirm COD orders by call or WhatsApp, offer a small prepaid discount, block repeat-refuser pincodes and verify addresses before dispatch.

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