Minimising RTO: A Seller’s Guide to Reducing Returns & Boosting Delivery

mstakh.i.mo.mi · Post by **mstakh.i.mo.mi** » Tue Feb 11, 2025 8:13 am

RTO, short for Return to Origin, is a term sellers often dread. It impacts the profitability of a business and its efficiency. As a seller, you may be aware of the financial repercussions of RTO and the hassle associated with the same. The rate of return is quite high among Indian eCommerce sellers. Statistics reveal that 20-25% of their purchases end up in return.

Did you know that you can reduce its rate by following a few simple tips? This article discusses the same. Discover the key causes, consequences, ways to reduce RTO, and more.

What is RTO (Return to Origin)?
The products not delivered to a customer and returned to the seller fall under the “Return to Origin” category. There can be many reasons behind unsuccessful deliveries, including:

The customer is not available at the given delivery address.
The incorrect address is mentioned on the package.
The customer denied the order at the doorstep.
Premise closed (in case of offices/ shops).
Fraudulent orders.
In such cases, the delivery agent returns the package which is shipped back to the seller.

How does RTO Affect Sellers?
RTO has a substantial impact on businesses. Increasing the number of italy phone number list returns adds to the logistics cost, and the business also has to bear the hassle involved in the process. Here is a closer look at the additional cost a business incurs due to RTO:

Blocked Inventory – When a customer places an order, that particular item is blocked as it is officially booked by them. In an ideal scenario, it is delivered safely, and the seller earns a profit. However, in the case of RTO, the items get blocked or stuck until they come back to the inventory. No one else can order them until the booked product/item comes back safely to the warehouse.
Operational Expense – When an order is placed, a business must bear several expenses to ensure it is delivered efficiently to the consumer. Some of these expenses are the cost of packaging, labour, and quality checks.