Why it is the number that decides profit
RTO rate = returned orders ÷ (delivered + returned) × 100
An RTO is the worst outcome in cash on delivery. The seller pays to ship the parcel out, pays to bring it back, and earns nothing. Two failed orders can erase the margin on a delivered one.
This is why sellers compare fulfilment partners on delivery rate rather than shipping price. A cheaper courier with a worse delivery rate is more expensive in practice.
What drives it up in this region
- Creative that oversells the product. In Libya this is the leading doorstep cause: the buyer opens the parcel to a different colour, a smaller size or a cheaper material than the ad showed, and refuses. It is a marketing failure that arrives as a logistics cost.
- Descriptive addresses. Much of Libya and Iraq is navigated by landmark, not street number. A raw checkout address often cannot be found.
- Unconfirmed orders. When nothing is paid upfront, a share of checkouts were never serious.
- Long transit. The further the city, the more time the buyer has to change their mind.
- Unreachable buyers. A phone that does not answer on the day of delivery usually becomes a return.
How it is reduced
The single largest lever is confirming the order by phone before dispatch, which also lets the agent rewrite the address into something the courier can actually navigate. Retrying a failed delivery rather than returning it on the first attempt is the second.