Return to Origin (RTO): Definition, Meaning & Guide for Indian Businesses

RTO is when a courier returns an undelivered package to the seller. India RTO rate ranges 5-30% depending on category, payment method and geography.

What is Return to Origin (RTO)?

Return to Origin (RTO) is the silent profit killer of Indian e-commerce. RTO can hit 25-30% on COD apparel in tier-3 cities; under 5% on prepaid electronics in metros. Each RTO costs the seller: forward shipping fee + reverse shipping fee + lost product margin + extra customer service. Reduce RTO by: increasing prepaid share, verifying address/phone via SMS before shipping, blacklisting habitual returners, choosing courier partners with lower RTO (Delhivery, Shadowfax usually better than third-party).