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Return to Origin (RTO) Policy

Last updated: October 2026

1. What is RTO?

Return to Origin (RTO) occurs when a courier attempts to deliver an order to a customer, but the delivery fails and the parcel is returned to the vendor. Common reasons include:

  • Customer refused to accept the parcel.
  • Customer unavailable after multiple delivery attempts.
  • Incomplete or incorrect address/phone number provided by the reseller.
  • Customer cancelled the order while it was in transit.

2. Financial Impact of RTO

Our courier partner TCS charges one base delivery fee per parcel, whether it is delivered or returned — there is no separate return charge. A COD parcel that is never delivered was never collected, so the 4% COD charge does not apply to an RTO order at all.

The delivery fee was already paid by the reseller when the order was placed, and the platform adds an RTO handling charge on top to cover the wasted cycle.

For Resellers:

  • A standard RTO charge (PKR 250, as per current platform config) is deducted from your wallet balance.
  • The delivery fee paid at checkout is not refunded — the courier has already moved the parcel both ways.
  • No COD charge is applied, since nothing was collected from the customer.
  • If your wallet balance is insufficient, it will show a negative balance. You must clear the negative balance before placing new orders.
  • Consistently high RTO rates may result in account suspension or mandatory COD security deposits.

For Vendors:

  • Vendors do not pay RTO fees as the failure is typically on the buyer side.
  • The physical product is returned to the vendor's registered return address by the courier.
  • Once received, the vendor's reserved stock for that item is released back into available inventory.

3. RTO Prevention Strategies

We advise resellers to follow these practices to minimize RTOs:

  • Confirm Orders: Always call the customer to confirm the order, address, and COD amount before placing it on PakDropship.
  • Accurate Details: Ensure the city, address, and active phone numbers are correct.
  • Track & Follow Up: Monitor tracking statuses and contact the customer if the courier reports delivery issues.
  • Vendor Side: Keep a complete pickup address on your profile and hand the parcel over on time — late or unlocatable pickups turn into RTOs before delivery even starts.

4. Disputing an RTO

If you believe an order was falsely marked as RTO by the courier, contact PakDropship support within 48 hours of the RTO status update. We escalate the issue with the courier, and where the courier accepts the challenge the RTO charge is reversed to your wallet. Claims filed after the courier has closed the parcel record cannot always be recovered.

5. Vendor Responsibility on Return

Vendors must ensure someone is available at their registered return address to receive RTO parcels from the courier. Failure to accept returns may result in the parcel being disposed of by the courier without compensation.