RTO Reduction

Prepaid Discount vs COD Fee vs Confirmation Call: What Lowers RTO?

Three common ways Indian D2C stores fight COD returns, compared on what each one costs, who it affects and when it pays off, with an illustrative per-100-orders example.

Edesy Team7 min read

Frequently asked questions

Does a prepaid discount reduce RTO?

It reduces COD orders, and prepaid orders rarely come back as RTO, so it can. But you pay the discount on every customer who switches, including those who would have accepted the COD parcel anyway. Whether it pays depends on how many of the switchers would actually have been RTO.

Does charging a COD fee hurt conversion?

It can. A fee at checkout adds friction, and some customers abandon rather than pay it or switch to prepaid. Test it on a share of traffic and watch both conversion and RTO before rolling it out.

Can I use all three methods together?

Yes, and many stores do. A prepaid nudge at checkout lowers the number of COD orders; a confirmation call on the COD orders that remain catches the ones the customer no longer wants before you ship.

Which method should a small store try first?

Usually the one that doesn't change checkout: confirming COD orders before dispatch. It only costs money on COD orders and doesn't risk conversion. Then test a prepaid nudge once you know your RTO cost per order.

Edesy Team

The Edesy engineering team, building voice AI, messaging, and automation products for Indian businesses.

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RTO ReductionCOD VerificationEcommercePricingIndia
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