1. The High Cost of Cash-on-Delivery (COD)
Why RTO is the Silent Killer of D2C Profitability
In the Indian D2C market, Cash-on-Delivery (COD) regularly accounts for 60% to 80% of total transactions. While offering COD increases conversion rates, it introduces a significant operational risk: Return-to-Origin (RTO).
When a customer rejects a COD package at their doorstep, the merchant must cover shipping and return costs, as well as handle product packaging wear and tied-up inventory. High RTO rates can quickly impact overall campaign margins.
Reducing RTO requires a systematic approach that balances conversion rates with order verification pipelines, helping to confirm customer intent before shipping.
Of total D2C orders in India
For unverified cash-on-delivery orders
Healthy benchmark with verification systems
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