The Hidden Costs of Cash On Delivery
In many regions (like India, GCC, and parts of Europe), Cash on Delivery (COD) is the dominant payment method. While it dramatically increases conversion rates, it introduces a massive variable cost: Return to Origin (RTO).
Calculating RTO Burden
Every time a customer rejects a COD package at their doorstep, you are hit with a double penalty: you pay the courier to ship the product there (Forward Shipping), and you pay the courier to ship the product back to your warehouse (Return Shipping).
This calculator shows you the Burden Per Successful Order. This is a critical metric: it tells you exactly how much you need to increase your product price to account for the customers who reject their packages.