When it comes to online shopping and delivery, RTS (Return to Sender) poses a serious challenge for SMEs, online retailers, and international sellers in the Philippines. Industry data suggests that up to 30% of all products ordered online are returned, significantly higher than traditional retail. These returns translate into increased costs, delayed shipments, and operational challenges that your e-commerce business cannot ignore.

Understanding RTS meaning in delivery and shipping is essential for your business aiming to reduce return rates, optimize logistics, and improve customer satisfaction. This blog breaks down the RTS concept, common reasons behind it, and practical strategies customized for your e-commerce operation to ensure smoother deliveries and fewer costly returns.

What Does RTS Stand For in Shipping?

RTS, or Return to Sender, is a term used in the shipping and logistics industry to describe packages that are undeliverable and returned to the sender. It’s an essential concept for both your e-commerce business as it can cause delays, additional costs, and inconvenience. When a package is marked as RTS, it means that the delivery attempt has failed, and the item will be sent back to its origin.

Common Reasons for RTS (Return to Sender)

There are several common reasons why packages are marked as RTS:

• Incorrect Address: One of the most frequent causes of RTS is an inaccurate or incomplete delivery address. If the recipient’s address is missing key details, such as an apartment number, zip code, or city, the carrier cannot deliver the package.
• Failed Delivery Attempts: In many cases, if a delivery attempt fails because the recipient is unavailable, the package may be returned to the sender. Delivery services usually try to deliver packages multiple times, but after a certain number of unsuccessful attempts, RTS is initiated.
• Unclaimed Packages: If the recipient doesn’t claim a package within a certain period, it may be returned to the sender. This is especially common in cases of missed deliveries where a package is waiting at a local post office or courier depot.
• Refused Deliveries: Sometimes, the recipient may refuse to accept a package, either because they no longer want the product or it is damaged. In such cases, the item is returned to the sender.
• Customs Issues: International shipments can face RTS if customs regulations aren’t met. If the package is held up at customs due to documentation issues, unpaid duties, or prohibited items, it may be returned.

As you continue to manage your shipping operations, it’s essential to consider the broader implications of RTS on both your delivery timelines and your brand’s reputation.

How RTS Impacts Delivery and Shipping

RTS doesn’t just affect the shipment of individual packages, it can have a ripple effect on your overall delivery process, customer experience, and even your brand reputation. Here’s a closer look at how:

1. Delays in Shipping Process

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When a package is returned to you, it doesn’t just get sent back to the recipient. It has to go through a full reprocessing cycle that adds extra handling time. This extends your shipping timeline, causing delays that disrupt your customers’ expectations for fast and reliable delivery. For your e-commerce business, these delays can lead to operational inefficiencies and unhappy customers.

2. Negative Effects on Customer Satisfaction and Brand Reputation

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RTS incidents often cause frustration for your customers, especially when they are due to factors beyond their control, like incorrect addresses or missed deliveries. When customers have to wait for a re-delivery, their satisfaction drops and your brand’s reputation may suffer. This can lead to fewer repeat buyers and lost sales over time.

3. Increased Costs and Logistical Challenges 

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Handling RTS packages demands extra resources from receiving and inspecting returns to arranging reshipments. These steps increase your costs with additional shipping fees, handling expenses, and the risk of inventory loss. If your business faces a high volume of RTS packages, this can significantly affect your finances and logistics operations.

Understanding these impacts enables your business to take preventive measures, ensuring that RTS doesn’t negatively impact your overall delivery efficiency and customer satisfaction. It’s also crucial to understand what happens once a package is marked as RTS, as the subsequent process can directly impact your bottom line.

Also Read: Comprehensive Guide to Logistics Planning Strategies

What Happens When a Package Is Marked RTS?

Once a package is marked as RTS, it triggers a specific series of actions that can affect your logistics flow and customer service. Here’s a step-by-step breakdown of the RTS process:

Step 1: Carrier Identifies the Reason for Return

The carrier reviews why they couldn’t deliver your package. Common reasons include:

• Incorrect or incomplete delivery address
• Customer unavailable or refusing delivery
• Multiple failed delivery attempts

This step helps you understand what went wrong and how to avoid it next time.

Step 2: Package Is Sent Back to You

After identifying the delivery issue, the carrier initiates the return shipment of the package to your specified return address or facility. This journey can take several days depending on the carrier’s transit times and distance. It’s important to monitor the return shipment closely, as delays here can impact your ability to reship or refund the order promptly. Staying informed helps you keep customers updated and manage expectations effectively.

Step 3: Receive and Inspect the Returned Package

When the package arrives at your facility, it must be carefully checked for damage or tampering during transit. Assess the condition of the item and verify that all contents are intact. Understanding the state of the returned goods determines whether you can restock, repair, or need to dispose of the product. This inspection step also informs your customer service approach and next steps in handling the return.

Step 4: Decide the Next Course of Action

You can:

• Reship the package if the delivery issue is fixable (like correcting the address).
• Process a Refund if the customer cancels or refuses the order.
• Restock or Dispose the item depending on its condition and your policy.

Step 5: Work with Your Carrier on RTS Procedures

Each carrier handles RTS packages differently, so be familiar with their policies:

• DHL: Usually makes several delivery attempts before marking as RTS and returns the package within days.
• FedEx: Offers options for reshipping or package pickup after RTS.
• UPS: Tracks RTS closely and may allow rerouting or rescheduling deliveries.

These RTS procedures can vary slightly depending on the carrier, but the core steps generally remain the same, each with its own impact on delivery timelines and customer experience.

While understanding the RTS process is essential, taking proactive steps to avoid it can significantly enhance your shipping efficiency and customer satisfaction.

Need Help Managing Your RTS Process?
If managing RTS packages is challenging, we’re here to help! Get a quote today to learn how Inspire Solutions can optimize your shipping process, reduce RTS occurrences, and improve your customer satisfaction.

How to Avoid RTS in Shipping

Did you know that returns cost e-commerce businesses globally an estimated $550 billion in 2020? A significant portion of these losses is due to RTS issues, which negatively impacts your shipping operations and customer satisfaction. You can implement the following strategies to avoid RTS:

• Double-check shipping details before dispatch. Verify that all address components street, building, unit number, postal code and contact numbers are accurate and complete. Small errors here are often the biggest cause of failed deliveries.
• Provide tracking information to your customers. Keeping them informed with real-time updates reduces missed deliveries and encourages prompt communication if issues arise.
• Encourage customers to give clear delivery instructions, especially for hard-to-find or rural locations. Extra details like landmarks or preferred delivery times can make a significant difference.
• Work with reliable shipping partners who offer multiple delivery attempts and responsive customer support. A trusted courier will help reduce RTS by managing delivery challenges proactively.
• Maintain open communication channels with your customers. Promptly address any change in address or delivery preferences to avoid misdelivery.

By focusing on these core strategies, you can cut down on RTS incidents, reduce extra costs, and maintain smooth delivery workflows.

As RTS directly affects the operational flow of your business, understanding its impact on e-commerce is crucial for managing your processes and maintaining customer trust.

Also Read: Improving Stock Control Systems: Methods and Best Practices

How Inspire Solutions Asia Can Help You Minimize RTS and Optimize Your E-commerce Logistics

Inspire Solutions Asia is dedicated to supporting e-commerce businesses in the Philippines with end-to-end logistics solutions designed to manage your operations, reduce RTS occurrences, and enhance overall customer satisfaction. Here’s how we can help:

• Comprehensive Address Verification: We use our advanced logistics platform to ensure that address verification is completed at multiple stages of the order fulfillment process. This helps reduce incorrect addresses, which are one of the primary causes of RTS packages. By ensuring accuracy from the start, we minimize the risk of returns and delays.
  
• Real-Time Tracking and Notifications: Through our Fusion Platform, we provide real-time tracking updates that allow customers and businesses to monitor shipments at every stage. By offering proactive communication, such as notifications of delivery attempts and updates on potential delivery issues, RTS occurrences are significantly reduced.
  
• Efficient Delivery Options: With a fleet that offers Same-Day and Next-Day Delivery options across Metro Manila and Luzon, we give customers a higher likelihood of receiving their orders on time. By providing faster delivery services and the flexibility to reschedule deliveries, we make sure that your customers are more likely to receive their products without needing to return them.
  
• Easy Returns Management: In the case that RTS does occur, our Returns Management service ensures a smooth and efficient process. We handle returns, QC checks, and restocking, making the process as smooth as possible for both the business and the customer. Our integrated system ensures minimal disruptions to your inventory flow, ensuring your operations continue without a hitch.
  
• Data-Driven Insights for Continuous Improvement: We use data analytics through our Fusion Platform to track RTS trends and identify areas where improvements can be made. With insights into common causes of RTS, we work with you to optimize your processes and prevent future issues, leading to better operational performance.

By working with Inspire Solutions Asia, you gain a partner who understands the logistics complexities of e-commerce and is committed to reducing the occurrence of RTS. Our smooth solutions, from accurate address verification to efficient returns management, help e-commerce businesses reduce costs, improve delivery reliability, and enhance customer loyalty.

Conclusion

Understanding and managing RTS (Return to Sender) in the shipping and e-commerce space is crucial for maintaining smooth operations and ensuring customer satisfaction. From preventing RTS occurrences by improving address verification to optimizing your delivery logistics, each step plays a vital role in enhancing business efficiency. Dealing with a high RTS rate caused by inaccurate shipping details can be frustrating. Struggling with delays in returns processing also adds to the challenge. Addressing these issues head-on can significantly reduce costs and improve your service quality.

At Inspire Solutions Asia, we offer customized logistics solutions to help you minimize RTS, manage order fulfillment, and provide smooth customer experiences. Our advanced technology, real-time tracking, and efficient returns management services are designed to tackle the common challenges businesses face. This allows you to focus on growth and customer satisfaction without the added stress of frequent RTS issues.

Schedule a meeting with us today to explore how we can optimize your logistics operations and provide solutions that ensure smoother, more efficient deliveries.