Decoding RTO Meaning in the Courier Industry
There can be several reasons why e-commerce sellers are unable to deliver parcels to customers. Under such circumstances, the items are returned to the seller’s warehouse, which in technical terms is called Return to Origin (RTO).
In order to set up a successful e-commerce business, it is crucial to have a thorough understanding of RTO meaning, its importance, the steps involved and its benefits. Keep reading to learn more!
Understanding RTO Meaning in the Courier Industry
Return to Origin (RTO) refers to the situation when a parcel is not delivered to the recipient’s address and needs to be returned to the seller. This usually happens in the case of the following scenarios:
- Customers are unavailable to receive their packages
- Customers deny package delivery
- The door of the premises is closed
- Buyer’s address or any other relevant detail is incorrect
- Failure in delivery re-attempt
Importance of RTO in Business Logistics
Now that you have a clear idea of RTO meaning, let’s delve into its importance in business logistics:
- Provides a reliable mechanism for businesses to get back their items in case of non-delivery
- Facilitates accurate ROI calculation based on the actual number of orders delivered than the total order count
- Helps estimate accurate shipping charges, ensuring optimum ROI for each order
Steps Involved in RTO: From Pickup to Delivery
Following are the steps involved in Return To Origin (RTO) right from parcel pickup to its delivery:
- The parcel is picked up from the seller’s address for delivery to the customer
- Customer is unavailable to take delivery of the parcel
- The courier partner attempts to re-deliver the parcel for a maximum of 3 times
- They call or send a text message to the customer to know whether they want to accept or reject the parcel and a favourable delivery time
- In case the customers are unavailable or decline the order, the courier partner initiates an RTO
Benefits of RTO for Businesses and Customers
Following are some of the benefits of RTO for businesses and customers:
- Analysing which products are performing better than others
- Assessing customer behaviour and shopping patterns
- Understanding how much inventory to stock in order to achieve a cost-effective business model
- Providing customers the opportunity to cancel their orders in case they ordered the wrong item
As you now have a clear idea of RTO meaning, all that is left for you to do is to hire a reliable courier partner. In this regard, Porter Courier can be an ideal choice.
We facilitate fast and efficient parcel deliveries in 20 cities across India, covering e-commerce shipping, personal gifts and items, and urgent same-day deliveries.
What’s more, we offer door-to-door pickup and delivery, ensuring that you do not have to step out in order to deliver your parcel. Also, we print the shipping label on our end.
So, you just need to mention the CR number on the box while handing it over to us.
Try Porter Courier Services today and handle all your business parcel deliveries like a pro!
FAQs About RTO Meaning in the Courier Industry
What does RTO mean in the context of courier services?
RTO or Return To Origin is a service provided by courier companies enabling businesses to get back the parcels which could not be delivered due to the customer’s unavailability.
How does RTO differ from other delivery services?
Return To Origin (RTO) is a reverse logistics service that enables companies to get parcels shipped back to their warehouses in case customers are unavailable to take delivery.
What are the benefits of utilising RTO in logistics and supply chain management?
Businesses can benefit from utilising Return-to-Origins (RTO) in logistics and supply chain management by quickly restocking blocked inventory, conducting better inventory management by assessing which products are performing better, calculating accurate shipping charges, and ensuring optimum ROI for each order.
What are some common challenges and solutions for RTO in courier services?
Delays in returns, lack of real-time updates, package loss in transit, and rescheduling are some of the challenges for RTO in courier services. Meanwhile, some of the solutions are on-time deliveries, address verification at the time of confirming orders, providing real-time delivery status updates to customers, and providing omnichannel customer support.
