Verification, thresholds and incentives that cut RTO rates on COD orders.
Cash on delivery is still how a large share of Indian orders are placed, and return-to-origin is the cost that quietly eats the margin on all of them.
Verify before you dispatch
An OTP confirmation on the phone number, sent immediately after the order, removes accidental and fake orders before packing. It costs almost nothing, adds one step, and typically removes a meaningful slice of the RTO rate on its own.
Use thresholds and history
Not every order carries the same risk. Set a value ceiling above which COD is unavailable, block it for pin codes with a bad delivery record, and restrict repeat offenders. Customers who have successfully taken delivery before are a different risk class and can be given more freedom.
Make prepaid the easier choice
A small discount or free shipping on prepaid orders shifts a surprising share of customers, and it is cheaper than the round-trip logistics on a refused parcel. Showing UPI first at checkout matters more than the discount size.
Track RTO by pin code, courier and product category rather than as one number. The losses are rarely spread evenly, and the fix usually applies to a small, identifiable slice.
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