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RTO Loss Calculator

RTO doesn't just mean a lost sale — it means you paid to ship an order out and paid again to ship it back, with nothing to show for it. See exactly what that's costing you each month, and how your rate compares to your category's benchmark.

Your numbers
%
₹
₹
₹
%
What RTO is costing you

₹29,498/ month

Double freight (shipped both ways)

₹20,520

Damaged/unsellable stock

₹8,978

171 of your 950 monthly orders (18%) come back as RTO.

Reducing RTO from 18% to 13% would save you ₹8,194 a month.
How your RTO rate compares
Within typical range

For Fashion & Apparel, sellers typically report:

COD orders: 35% RTOPrepaid orders: 14% RTO

Midpoint of the cited 25-45% COD RTO range for fashion & apparel. Source: reliable secondary, verified 2026-10-04.

How we calculated this

We don't charge your full product cost on RTO'd orders — the item comes back to your inventory and is usually resellable. The real RTO cost is double freight (you paid to ship it out and paid again to ship it back) plus a damage/resale-loss provision for stock that comes back unsellable.

Worked example

A seller dispatching 1,000 orders a month at exactly a 10% RTO rate — a round number that's easy to sanity-check against your own numbers.

Inputs

Dispatched orders
1000
RTO rate
10%
Product cost
₹400
Forward + reverse shipping
₹120

Result

RTO units
100
Double freight cost
₹12,000
Damage/resale-loss cost
₹6,000
Total monthly RTO loss
₹18,000 / month
FAQ
Does RTO loss include the full product cost of the returned item?

No — the item comes back to your inventory and is usually resellable, so charging full product cost would double-count a cost you haven't incurred. The real cost is double freight plus a damage/resale-loss provision for stock that comes back genuinely unsellable.

Why is COD RTO so much higher than prepaid RTO?

A COD customer hasn't paid yet, so there's no financial commitment backing the order — refusal at the door, address issues, or simple change of mind cost them nothing. Prepaid customers have already paid, which filters out a large share of that behavior.

What's a 'good' RTO rate?

It varies sharply by category — fashion/apparel COD RTO commonly runs 25-45%, while electronics is closer to 8-28%. Compare your rate against your own category's benchmark above, not a single national number.

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