13 April 2026 · D2C

COD, RTO, and where D2C margin really leaks

Storefront GMV is a vanity metric if you skip the lines that only show up after the carrier attempts delivery. Our ecommerce profit guide lists the categories; this post focuses on COD and RTO.

Model COD as risk, not only a payment mode

Forward attempts, cash handling, and refused handovers all carry cost. Express that as a percentage of COD orders and revisit it when you change carriers or expand pincodes.

RTO is not a refund—it is a second logistics event

Inventory tied up in RTO is inventory not available for marketplaces or other channels. That is why multi-channel profit needs the same return story as your Amazon and Flipkart lanes.

Layer gateway and EMI next

Once COD and RTO sit in the model, add gateway and EMI subvention lines so contribution margin matches what hits the bank.

Connect D2C with the rest of your stack

Profitru ties your store to inventory, returns, and marketplace data.

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