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Flipkart seller guide

RTO vs Customer Return on Flipkart: Charges and How to Tell Them Apart

6 min read · Updated

Quick answerFlipkart's own report help defines RTO as a courier return, an order cancelled after dispatch, and RVP as a customer return created after delivery. The returns report writes them as courier_return and customer_return, and the settlement report as Logistics Return and Customer Return. In our settlements an RTO cost no fee, as the sale and refund cancelled out, while a customer return also cost the reverse shipping fee plus 18% GST. Their reasons differ too, so track them separately.

Seller Help Return tracking table for a demo Flipkart store: eight returns from the Flipkart returns report, each with sub order number, SKU, type Returned or RTO, return date and status completed

The two kinds of return in Flipkart's words

The definitions are from the Help sheet inside the Flipkart returns report.

RTOCustomer return (RVP)
Flipkart's definitionCourier return: order cancelled after dispatchCustomer creates a return after delivery
Returns report, return_typecourier_returncustomer_return
Settlement report, Return TypeLogistics ReturnCustomer Return
Reached the customer?NoYes

What each one cost us

In one month of our settlement report, 117 RTO rows had a refund that cancelled the sale and no reverse shipping fee. The 53 customer returns each carried a Reverse Shipping Fee of ₹110 to ₹230 plus 18% GST, most often ₹139 or ₹175. That fee is the main cost of a customer return; see the reverse shipping fee guide for the full table.

An RTO still costs you the packing, the label and the time the stock is away. Check your own file, because terms can change.

Why they happen: reasons from our returns report

The two lists hardly overlap. RTO reasons are about delivery attempts and cancellations after dispatch. Customer return reasons are about the product: quality, a wrong or damaged item, or a change of mind. So the fixes are different too. The returns report covers a different date range than one settlement, so its counts will not match the settlement exactly.

Courier returns (RTO)CountCustomer returnsCount
ORC_validated with customer29QUALITY_NOT_AS_EXPECTED19
Attempts_Exhausted16DIFFERENT_PRODUCT_RECEIVED10
Uncontrollable Factors8DAMAGED_PRODUCT_RECEIVED7
Cancelled OTP validated5CUSTOMER_DOES_NOT_WANT6
Others24Others9

Measure them on the right base

  • RTO rate: RTO orders ÷ dispatched orders. An RTO never reached the customer.
  • Customer return rate: customer returns ÷ delivered orders, the orders that reached the customer.
  • Use the same dates for both counts, and wait until recent orders are delivered or returned before calling a rate final.
Seller Help overview for a demo Flipkart store: delivery rate 85.7%, return rate 7.7% of orders that reached the customer and courier return (RTO) rate 7.1% of dispatched orders
Return rate is counted on delivered orders, RTO rate on dispatched orders. Demo store.

Track both without sorting files by hand

The free Flipkart seller dashboard reads the returns report and the settlement report, marks each order as RTO or customer return, and shows both rates and the charges for each on the Returns & RTO tab.

Frequently asked questions

What is RTO in Flipkart?

RTO is a courier return: the order was cancelled after dispatch and the parcel went back to the seller without reaching the customer. The settlement report calls it Logistics Return.

What is RVP in Flipkart?

RVP is a customer return: the customer received the item and created a return. The settlement report calls it Customer Return.

Does Flipkart charge the seller for RTO?

In our month none of the 117 RTO rows had a reverse shipping fee; the sale and refund cancelled out. Customer returns did have the fee. Check your own report, as terms can change.

Which is worse for a seller?

A customer return costs more in fees, and the item may come back used or damaged. An RTO usually comes back unopened but still costs packing and time.

Seller Help is a free set of tools for Meesho, Amazon and Flipkart sellers, built and run by Bhintika (Crown Decoz, Jaipur) by Ramesh Jangir, who sells on all three marketplaces. Independent tools: marketplace names and logos belong to their owners.