For Indian D2C brands with a high share of cash on delivery, RTO rates of 10–25% are common and costly: the seller pays forward and reverse shipping and earns nothing. COD confirmation calls or WhatsApp messages, address checks and prepaid incentives are the standard defences.

Formula

RTO rate = Orders returned undelivered ÷ Orders shipped × 100
Work it out: Break-even ROAS

The minimum ROAS and maximum CAC your unit economics can afford, with a full contribution margin waterfall.

Related terms

Part of the growth marketing glossary by Shiva Sharma.