Running an ecommerce business is exciting, but let’s be honest—it’s not always smooth sailing. Many online sellers make avoidable mistakes that can hurt sales, increase return to origin (RTO) rates, and leave customers frustrated.
But don’t worry! In this blog, we’ll break down the most common ecommerce mistakes and show you exactly how to fix them.
Mistake #1: Ignoring RTO (Return to Origin) Issues
Have you ever had an order shipped but returned to you without delivery? That’s called RTO (Return to Origin), which is one of the biggest problems for e-commerce sellers.
🔍 Why is high RTO a big problem?
- High RTO rates eat into your profits (shipping costs + return handling = lost money).
- Frequent RTOs hurt your cash flow and inventory management.
- A high “undelivered order” rate affects your brand reputation.
📉 Fact: On average, 20-30% of COD (Cash on Delivery) orders in India result in RTO. (Source: iThink Logistics)
How to Fix It?
✅ Verify customer details before dispatch – Use automated address validation tools.
✅ Offer prepaid payment incentives – Discounts or cashback for prepaid orders.
✅ Use NDR (Non-Delivery Report) tracking – Follow up quickly on undelivered shipments.
✅ Improve COD risk analysis – Block risky COD orders based on past trends.
Mistake #2: Not Understanding “RTO Delivered” vs. “RTO Initiated”
Many sellers get confused when checking order statuses. Let’s simplify it:
🔄 RTO Initiated: This means the delivery failed, and the courier is sending the package back to you.
📦 RTO Delivered: The returned package has reached your warehouse or pickup centre.
How to Fix It?
✅ Monitor your RTO reports weekly – Identify common trends and fix issues.
✅ Use smart NDR management tools – These can escalate undelivered orders automatically for a re-attempt.
✅ Offer a seamless return process – Clear return policies help build trust.
Mistake #3: Not Locking RTO for customers
Sometimes customers place multiple orders but refuse delivery when it arrives. This leads to unwanted RTOs.
🛑 What is RTO Lock?
It’s a feature that prevents frequent RTO customers from placing COD orders again.
How to Fix It?
✅ Enable RTO Lock for high-risk buyers – Block repeat offenders from using COD.
✅ Analyze customer behaviour – Flag accounts with multiple undelivered orders.
✅ Offer COD only to trusted customers – Prepaid orders reduce RTO risk.
Mistake #4: Ignoring Low Conversion Rate
If visitors are coming to your website but are not buying, your conversion rate needs to work.
📉 Fact: The average ecommerce conversion rate is only 2.5% to 3%. (Source: Shopify)
How to Calculate Your Conversion Rate?
Use this formula:
🧮 Conversion Rate (%) = (Total Sales / Total Visitors) × 100
For example, if 10,000 people visit your site and 250 buy something, your conversion rate is 2.5%.
Or Use below ready to use conversion calculator:
Website Conversion Rate Calculator
Find out how well you’re converting visitors into customers!
How to Fix It?
✅ Speed up your website. Slow sites mean lost sales. Aim for under 3 seconds of load time.
✅ Use high-quality product images & videos – 75% of buyers say photos influence their purchase decisions.
✅ Showcase customer reviews – Builds trust and boosts conversions.
✅ Simplify checkout – Reduce form fields and allow guest checkout.
Final Thoughts: Small Fixes, can get Big Results in reducing ecommerce RTO
Mistakes happen, but fixing them early can save your business from lost revenue and unhappy customers. Focus on:
✅ Reducing RTO with better address verification and prepaid offers.
✅ Use RTO tracking methods to manage returns efficiently.
✅ Optimize conversions to turn visitors into paying customers.
Want to reduce your RTO% and boost sales? Start implementing these fixes today! 🚀
