Why COD return-to-origin losses add up
A failed delivery can consume forward and reverse freight, handling and nonrecoverable product value. Apply the RTO rate to the COD share of all orders rather than to every order.
D2C OPERATIONS / FREE TOOL
Estimate the monthly business cost of return-to-origin orders across your COD mix.
Estimate the monthly business cost of return-to-origin orders across your COD mix.
Illustrations based on the inputs above, not a guarantee.
THE THINKING BEHIND THE NUMBER
This business-level view applies the COD RTO rate to placed COD orders and adds logistics, handling and nonrecoverable product losses.
Monthly RTO loss = monthly orders × COD share × RTO rate × loss per RTO incident.
For illustration, enter monthly orders 1,000, cod share 50%, cod rto rate 15%, lower rto scenario rate 10%. With the remaining fields at their starting values, the estimated monthly rto loss is ₹15,375.00. Replace these sample figures with your own numbers before making a decision.
Actual loss varies with recoveries, courier contracts and product condition. This is a planning estimate.
Use the result alongside your store analytics, product costs and operating context. If the inputs are estimates, treat the output as an estimate too. Change one input at a time to understand what drives the result.
GO DEEPER
A failed delivery can consume forward and reverse freight, handling and nonrecoverable product value. Apply the RTO rate to the COD share of all orders rather than to every order.
CLEAR ANSWERS
Enter your own business figures in the labelled fields. The result updates immediately and uses this calculation: Monthly RTO loss = monthly orders × COD share × RTO rate × loss per RTO incident.
Actual loss varies with recoveries, courier contracts and product condition. This is a planning estimate.
No. This calculator is free to use without an account. Its numeric inputs are processed in your browser.
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