Most Indian merchants never measure it — they just feel it in the margin at month end. Three numbers and you'll know.
COD orders return at ~26%. Prepaid returns at under 2%. A partial deposit doesn't have to be large — it just has to be more than zero, so refusing costs the buyer something.
The 50% figure above is an illustration, not a guarantee — how many COD buyers accept a
deposit varies by category, price point and how you present it. Test it on a subset first.
Benchmarks: COD RTO ~26% vs prepaid under 2%
(Shipway ShipNotes);
cost per RTO ₹180–240 across freight, reverse logistics, repacking and blocked inventory.
Your own numbers will beat any benchmark — use them.
ByteInfy — Shopify apps for Indian D2C