On Ajio, an RTO is a shipment that never reached the customer and comes back to you. A return is an order delivered and then sent back. Each can trigger a sale reversal, a commission adjustment and logistics or other fees. Check every line against your seller agreement and rate card, then claim whatever does not match.
RTO vs return: why the difference matters
Both end with stock coming back to you, but they start differently and are often treated differently in your settlement.
- RTO (return to origin): the shipment was not delivered. The customer refused it, could not be reached, or the address failed, and the courier sent it back.
- Customer return: the customer received the product and then returned it, for reasons such as size, quality or a wrong item.
The deductions, the fee treatment and the proof you can submit differ between the two. If you lump them together in one "returns" bucket, you will not know which rule to check a charge against.
Deductions that can appear when an order comes back
The exact names vary by report and by your contract. These are the usual categories to look for:
- Sale reversal: the order value is taken back from your payout.
- Commission adjustment: the commission on that order may be reversed fully, partly or not at all, depending on your agreed terms.
- Logistics or reverse shipping fee: a charge for moving the parcel back.
- Other fee reversals or charges: for example fixed or collection-related fees. Check whether each is refunded on a return.
- Tax-related lines: the treatment of GST and TCS on reversed sales depends on current rules. Confirm with your tax adviser and the latest notifications.
- Penalties or claims: items for wrong, missing or damaged products, if your agreement provides for them.
Do not assume any percentage or flat amount. Your seller agreement, rate card and settlement report are the only sources that count.
How to trace a deduction back to an order
Reconciling returns works best at order level, not as a monthly total.
- Export the settlement or payment report for the period.
- Export your order and returns data for the same period, including the order ID, the SKU and the status (delivered, RTO, returned).
- Match each reversal or deduction to an order ID.
- Tag each order as RTO or customer return, and note the date the stock was received back.
- For each order, write down what your terms say should happen: reversal, fee treatment, credit.
- Compare the expected figure with what was actually settled.
Watch the timing. A return can be settled in a later cycle than the original sale, so a single settlement period will rarely net to zero on its own.
Common places where deductions go wrong
- Commission not reversed on an order where your terms say it should be.
- Duplicate reverse-logistics charges on the same order ID.
- RTO charged like a customer return, or the other way round.
- Sale reversed but stock never received, or received in a different condition than claimed.
- Return reversed twice across two settlement cycles.
- Fees applied at the wrong slab or on the wrong value, compared with your rate card.
Not every mismatch is an error. Some come from timing or a term you forgot. Confirm against the agreement before you raise anything.
Raising a recovery case that gets resolved
A claim with order-level evidence is much easier for a marketplace team to act on than a general complaint about the month.
- List the order IDs, settlement dates and the exact line items in dispute.
- Quote the clause or rate card entry that supports your expected amount.
- Attach proof: the settlement extract, courier tracking, return receipt and photos for quality disputes.
- State the amount claimed, separated by reason.
- Note the date you raised it, the reference number and the follow-up date. Check your agreement for any claim window.
Track each case until the credit shows up in a later settlement. Many recoveries are lost simply because nobody checked whether the money actually arrived.
Making this a monthly habit
Doing this in spreadsheets works for a small catalogue, but it becomes slow as order and return volumes grow. MarketplaceMetrics by Fundle reconciles sales and settlements, checks commissions and fees against agreed terms, and tracks returns and recovery cases. Myntra Excel reports are reviewed today, and Ajio is part of the scope discussion, so confirm current coverage with the team before you plan around it.
Whatever tool you use, the routine stays the same: reconcile, tag, compare to terms, claim, and follow up until the credit lands.
Worked example
Illustrative example only. All figures and rates below are made up to show the method. They are not Ajio rates.
Assume one delivered order of ₹1,000 that the customer returned. Your agreement (assumed for this example) says the commission of ₹150 is reversed and a reverse-logistics fee of ₹70 is charged once.
| Line | Expected (₹) | Settled (₹) |
|---|---|---|
| Sale reversal | -1,000 | -1,000 |
| Commission reversal | +150 | 0 |
| Reverse-logistics fee | -70 | -140 |
| Net | -920 | -1,140 |
The difference is ₹220: ₹150 of commission not reversed and ₹70 of a duplicated fee. You would raise one case for the order ID with the two reasons listed separately.
Questions and answers
Is an RTO the same as a customer return on Ajio?
No. An RTO is a shipment that was never delivered and went back to you. A customer return is delivered and then sent back. Deductions and proof requirements can differ, so tag each order correctly before checking charges against your agreement.
Where do I find the exact RTO and return charges?
Check your Ajio seller agreement, the rate card or annexures attached to it, and the line descriptions in your settlement report. Marketplace terms change, so confirm the latest version with your account manager before disputing a charge.
Why does my settlement not match my returns data?
Common reasons are timing, since returns settle in a later cycle, plus duplicate charges, missing commission reversals and orders tagged wrongly. Match at order ID level and compare each line to your terms to separate timing gaps from real errors.
What proof should I attach for a recovery claim?
Include the order ID, the settlement lines in question, the agreement clause or rate card entry, courier tracking, the return receipt and photos if quality or damage is disputed. Add the amount claimed per reason so the reviewer can act quickly.