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Glossary

Return to Origin (RTO)

Also known as: RTO · Return to origin

Return to Origin (RTO) is the percentage of cash-on-delivery orders that never reach the customer or are refused at the doorstep — the package returns to the warehouse instead of being delivered. RTO is the single largest cost driver in COD e-commerce.

Operator context

Without confirmation infrastructure, RTO in LATAM COD typically sits at 25-40%. With hard-gated Spanish call-center confirmation and multi-carrier routing, RTO drops to 10-15%.

The cost of an RTO is roughly: packaging + picking + forward courier + reverse courier + lost stock. In LATAM markets this is $4-8 USD per failed order. At 30% RTO on 5,000 orders, that's $6K-12K of pure loss per month — before accounting for the gross margin foregone.

The seven-step RTO reduction playbook is detailed at /how-to-reduce-rto-cod.

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