It costs more per parcel than forward logistics, because pickups are less predictable and returned items need inspection, repacking or write-off. For fashion and footwear, exchanges can make up a large share of total shipping.
Count reverse logistics in contribution margin, not in overheads, so products with high return rates carry their true 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
- RTO (return to origin)RTO is an order that is shipped but not delivered and returns to the seller, most…
- Refund rateRefund rate is the share of delivered orders, or of revenue, that is refunded to…
Part of the growth marketing glossary by Shiva Sharma.