Online shopping is a dream, right? The ease of browsing through catalogs and getting your favourite items delivered right to your doorstep is unbeatable.
Moreover, we all love the convenience of Cash on Delivery (COD)—it’s like having your cake and eating it too. There’s no upfront payment, so no risk of losing money when you return an order, Right? No, Wrong!
Let’s see how
What you may not know is that frequent COD returns can affect how e-commerce companies view you. Every time you return or accept a COD order, they give you a score. That score plays a key role in determining if you’re considered low RTO (Return to Origin) risk, medium RTO risk, or the dreaded high RTO risk.
Why Does This Matter to You?
Delivery and courier companies like Delhivery, used by e-commerce brands, keep track of these scores and share this data among various companies. When your return rate is high, especially for COD orders, your score takes a hit. That earns you a negative score, pushing you towards the medium RTO to high RTO risk category. Once you’re in that zone, companies may hesitate to process your future orders, delay your deliveries, or even prevent you from placing any CoD order.
What Happens When You’re “Medium-High Risk”?
Picture this: You’ve just spotted the perfect jacket online and placed a COD order. But because of your high RTO risk score, your order doesn’t get processed as fast as it should—or worse, it gets canceled. Companies incur high losses on returns as the margins are not that high. Returns aren’t just a minor inconvenience for retailers—they’re expensive. The costs of shipping, processing, and restocking can add up fast.
How to Stay in the Safe Zone
Avoid being flagged as high risk by being mindful of your COD orders. Only order what you’re sure you want, check size charts and think twice before impulse shopping. In doing so, you’ll keep your score positive and your shopping experience hassle-free!
In short, too many returns = too many problems! Both for you and the seller! Keep it in check, and stay on the good side of your favorite e-commerce sites.