Return-to-Origin (RTO) is one of the biggest profit killers in Indian e-commerce—especially when you offer Cash on Delivery (COD). Failed deliveries, customer refusals, and unserviceable areas can pile up hidden costs that eat into your bottom line.
Why Reducing RTO Matters
- Save money on logistics and wasted shipping.
- Improve delivery success rate with better customer targeting.
- Streamline operations and reduce support tickets from failed deliveries.
- Make data-backed decisions using real-time COD analytics.
5 Simple Steps to Reduce RTO on COD Orders
1. Restrict COD to Trusted Pincodes
Some pincodes have higher RTO rates. Block or allow COD based on pincode conditions using the app’s rule builder.
2. Set a Minimum Order Value for COD
Filter out low-value, high-risk orders by setting a minimum order value for COD (e.g. ₹500+).
3. Charge a Small COD Fee
Add a nominal fee (₹50 ) to increase buyer intent and offset handling costs.
4. Tag High-Risk Products and Apply Rules
Use product tags like “fragile” or “trendy” and apply custom rules—like higher fees or COD restrictions.
5. Apply Rules Based on Shipping Zones
Different regions have different risks and costs. With the app, you can tailor your COD rules based on shipping zones—like allowing COD only in metro cities or blocking it in remote areas.
Method: Use the Nex Advanced Cash on Delivery App
The Advanced Cash on Delivery Rule app helps you build smart COD logic—whether it’s restricting risky areas, applying fees, or tailoring conditions to reduce RTO risks.
Step 1: Install the App
Go to the Shopify App Store and search for Nex Advanced Cash on Delivery App.
Click on Install Button.
Step 2: Access the App in Your Admin
In your Shopify dashboard, go to Apps → Nex Advanced Cash on Delivery App.
Step 3: Create a New Rule
Click on Limit Cash on Delivery Configure , then choose Cash on delivery as the payment method.
You’ll now have access to conditions like:
- Cart value
- Country
- State
- Pincode
- Product tag or collection
You can also set:
- Fixed COD fee
- Minimum order requirement
- Allowed/blocked pincodes
Step 4: Ready to Go
Click on Save, then place a test order with different cart values, pincodes, or products to verify that your rules are working as intended.
Conclusion
Reducing RTO doesn’t need a full logistics overhaul—just smarter COD rules. With the Nex Advanced Cash on Delivery app, you’ll reduce failed deliveries, protect your margins, and streamline fulfillment.
Ready to reduce RTO and boost profitability?
👉 Install Nex Advanced Cash on Delivery App and set your first smart rule in minutes.
5 Simple Steps to Reduce Your Shopify Store’s RTO Rate