Question 1

What is a good cost per delivered order for Indian D2C brands?

Accepted Answer

A good cost per delivered order depends on the category. Fashion brands typically range between ₹220-₹320, beauty ₹180-₹260, and FMCG ₹90-₹160. If your costs exceed these ranges, RTO and warehouse inefficiencies are likely causes. Reducing RTO India is the fastest way to improve this benchmark.

Question 2

How does RTO affect my true cost per delivered order?

Accepted Answer

RTO increases your cost per delivered order through reverse logistics, processing, and damaged inventory. It also inflates costs because total dispatch expenses are divided by successful deliveries. A higher RTO rate significantly raises per-order costs, making RTO reduction one of the most impactful operational levers.

Question 3

Why is the true cost per delivered order different from my shipping rate?

Accepted Answer

Shipping rate includes only forward freight. True cost per delivered order also factors in RTO costs, warehouse labour, packaging, payment processing fees, and technology expenses. Since failed deliveries inflate overall costs, most Indian brands find their true cost is 2-3 times higher than shipping rates.

Question 4

How can Base.com help reduce the cost per delivered order for Indian brands?

Accepted Answer

Base.com helps reduce cost per delivered order through pre-dispatch RTO scoring, barcode-based pick-pack-ship processes, automated workflows, real-time ERP integrations, and COD reconciliation. These improvements reduce errors, labour costs, and return rates, helping brands significantly lower backend operational costs at scale.

Question 5

How often should Indian brands calculate cost per delivered order?

Accepted Answer

Indian brands should calculate the cost per delivered order monthly. Costs change based on RTO rates, channel mix, and logistics pricing. Regular tracking helps identify inefficiencies, optimize operations, and improve margins. Brands that review this monthly consistently outperform those relying on quarterly or infrequent calculations.

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