International Returns: Handling RTO (Return to Origin) Shipments

What is RTO (Return to Origin)?

RTO occurs when an international shipment cannot be delivered to the recipient and is sent back to the exporter's origin address. Common reasons for RTO include customer refusal to accept the package, failure to clear customs duties, incorrect addresses, or multiple failed delivery attempts where the recipient was unreachable.

Costs Involved in RTO Shipments

Returned international shipments carry significant fees. Shippers must cover the return shipping cost (which is often higher than the outbound rate as promotional bulk discounts may not apply) and pay import duties/taxes when bringing the goods back into India. Customs departments assess returned products as standard imports unless you submit formal documentation verifying they were originally exported.

Configuring Return Rules

To protect your margins, Airbezz allows you to configure automated RTO policies in your dashboard settings:

• Ship Back to Origin: The package will be returned to your warehouse. Best for high-margin, expensive products.
• Discard/Abandon: Instruct the carrier to discard the package at the destination country. Best for low-cost items where the return shipping charge exceeds the value of the goods.
• Reroute to a New Address: Forward the parcel to another customer or warehouse within the destination country.

Best Practices to Minimize RTO Rates

Ensure address fields are completed correctly, and always collect a valid mobile number for the recipient. Our checkout rate engine can pre-validate international postal codes to prevent formatting errors and keep your RTO rates below 2%.