Find out exactly what one failed delivery costs you, and how much Return-To-Sender packages are really bleeding from your store every month.
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Total monthly RTO cost
— —Revenue never collected
—Annualized RTO cost
—"Revenue never collected" is lost opportunity, not an added cost — it is shown separately and never summed into the RTO cost above, to avoid double-counting the same return. Figures assume confirmed orders; if you need leads and confirmation rate too, use the COD Profit Calculator.
Every return costs you twice: once on the way out, once on the way back. CODSPOT's WhatsApp confirmations and address verification cut RTO rates before they hit your bottom line.
Start Free TrialA failed delivery does not just cost the return shipping fee. Three costs stack on every single RTO package:
Any confirmed order that a courier ships but the customer refuses, cannot reach, or that gets sent back to you for any reason — the package makes a full round trip without generating revenue.
Delivery rate (used in the COD Profit Calculator) is measured against confirmed orders and shows what share got delivered. RTO rate is the same ratio viewed from the other side — the share that came back. The two always add up to 100% of confirmed orders.
No — they are two separate numbers on purpose. Return cost is what you actually paid out (courier fees, packaging, unrecovered product value). Lost revenue is what you would have collected if the order had been delivered instead. Adding them together overstates your loss.
Most RTOs trace back to unconfirmed intent or a bad address. Confirming orders by phone or WhatsApp before shipping, verifying the delivery address, and following up with reminders before the courier arrives all reduce refused and undeliverable packages.
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