Every failed attempt adds days, raises the chance the customer cancels, and for cash-on-delivery orders raises the chance of an RTO. A high first-attempt rate usually means good address quality and a courier that serves the area well.

Compare it by courier and by region. A courier with a cheaper rate and a lower first-attempt rate can cost more once RTOs are counted.

Formula

First-attempt delivery rate = Delivered on the first attempt ÷ Delivered
Work it out: RTO cost

What cash-on-delivery returns cost you each month, per RTO and per COD order, and the prepaid incentive that pays for itself.

Related terms

Where this comes up

How to compare couriers on your own dataRate cards tell you what a courier costs. Your orders tell you what it really costs. A method for ranking couriers on delivered rate, COD RTO, speed and cost per delivered order. How to reduce RTO on cash-on-delivery ordersA practical playbook for Indian D2C brands: measure RTO properly, find where it comes from, and cut it with confirmation, courier routing, pincode rules and prepaid incentives.

Part of the growth marketing glossary by Shiva Sharma.