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Return-to-origin (RTO) issues, mostly in COD and delayed deliveries, lead to ₹100s of crores in lost revenue every year for Indian eCommerce brands. Order value recovery via a protection mechanism like Shiprocket RevProtect, for a small per-shipment fee, allows sellers to reclaim part of that loss, making revenue streams more predictable.
Picture this: you sell 1,000 orders a month. Let’s say 25% are COD, and among those COD orders, 30% fail to deliver (become RTO). Assuming average order value is ₹1,000, that’s ₹7.5 lakh of order value potentially lost per month just from RTOs (not counting freight, marketing spend, returns processing etc.).
Unfortunately, this is not hypothetical — it’s the reality for many brands in India. Studies show that COD orders have RTO rates around 25-30%, while prepaid ones are far better behaved (RTO ~2-3%).
Order value recovery is a framework to limit that loss: recovering a portion of the product value when things go wrong (due to delays or RTOs). And when combined with preventative tools (like better buyer communication, faster delivery, etc.), it not only reduces losses but stabilizes revenue forecasts.
Shiprocket RevProtect, launched recently, gives sellers exactly this sort of safety net: recover up to 50% of order value under certain conditions, plus freight refunds.
So the scale is large — even a small percent improvement can translate to lakhs or crores INR per brand per year.
RevProtect’s model combines both: tools that help reduce failures (Delivery Boost, Notify) + order value recovery when failure happens.
Here’s what sellers get with RevProtect in relevant failure scenarios:
| Failure Scenario | What You Recover |
|---|---|
| Order becomes RTO due to delayed delivery or failed first attempt | Up to 50% of order value (capped, e.g. ~₹499) + freight refund |
| Delivery delayed beyond promised date but eventually delivered | Freight cost refunded (up to ~₹99) |
| Customer unavailability / wrong address causing reattempts / failure | Delivery Boost helps reduce such risk; protection may apply depending on cause per terms |
Combining prevention + recovery yields the best outcome.
| Metric | Baseline (Without Protection / Optimization) | With RevProtect + Optimization |
|---|---|---|
| COD share of total orders | ~25-30% | Same, but less risky |
| RTO rate (COD orders) | ~25-35% (varies by city, delivery speed) | Reduced via Delivery Boost & Notify; value recovery covers losses |
| Revenue lost per RTO order | ~100% order value + freight cost | ~50% order value + freight cost recovered |
| Cost per shipment for protection | 0 (but risk of full loss) | Fixed ₹39 + taxes |
| Predictability of monthly cash flow | Low (because losses unpredictable) | Higher (protected & partially recovered losses) |
In India’s eCommerce ecosystem, some amount of shipping delay and RTO is almost inevitable—especially with COD, cross-zone deliveries, and in less urbanized areas. But letting every failure erode your finances is optional.
Order value recovery turns those losses into calculated, manageable business costs. And with Shiprocket RevProtect, you can both reduce risk and recoup meaningful portions of value—making your revenue more predictable, your margins steadier, and your business more resilient.
If you’re a seller who cares about margins as much as growth, adding RevProtect is not a gimmick—it’s a smart layer of protection.
Yes — because even a few failed orders can skew profit margins significantly. A protection mechanism converts unpredictable big losses into predictable small costs, which helps in cash flow planning.
Coverage depends on the cause of RTO. If it’s due to seller or logistics delay, RevProtect likely applies. If done fraudulently by buyer outside guidelines, it may not. Always check the policy terms.
At ₹39+taxes per protected shipment, 1,000 orders/month means around ₹39,000 + taxes. Compare that to potential loss: if 300 COD orders fail (30% rate) with avg order value ₹1,000, that’s ₹3,00,000 lost. Recovering ~50% via RevProtect makes a big difference.
Mostly just monitor your account. The refunds / recoveries are automatic when conditions are met. But you’ll get better results if you also work on reducing RTOs and improving delivery reliability.
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