Logistics Math
The Silent Margin Killer: RTO
In Nepal, Return-to-Origin (RTO) is the single biggest threat to e-commerce profitability. When a customer orders a product on COD, they have zero financial commitment.
When the courier rider arrives 3 days later, customers frequently say: "Ma ahile ghar ma chaina", "Aru thau bata kinisake", or simply switch off their phone.
Double Shipping Fee Penalty
When an order is returned in Nepal, couriers do not waive fees. You pay the full outbound delivery fee (e.g. Rs. 150) plus an RTO return charge (Rs. 80 to Rs. 120). You lose Rs. 230 in cash plus your advertising CAC on a product that generated zero revenue.
Core Takeaway: Every 5% increase in your COD return rate cuts your net monthly profit by over 20%.