Glossary
RTO (Return to Origin)
Definition
A parcel that was never delivered to the customer and is being sent back to the seller, usually after failed delivery attempts or refusal.
RTO is different from a customer return: the parcel is typically still sealed and resellable, but you have paid shipping in both directions and earned nothing. On high-volume, low-price channels it is a material share of dispatches rather than an edge case.
The rule that keeps stock honest: RTO units become sellable when the parcel is physically received and inspected, never when the courier's tracking says 'returned'.
Related terms
- COD (Cash on Delivery)An order the customer pays for when it is delivered, with the courier collecting the cash and remitting it to the seller later.
- SettlementThe payment a marketplace makes to a seller for a period of orders, after deducting commissions, shipping, fees, promotions, penalties and tax collected at source.
- OversellingAccepting an order for stock you cannot ship, usually because more than one channel held its own idea of how much was available.