RTS — Return to Sender (Undeliverable Shipments Explained)

RTS — Return to Sender is a transport and delivery term used when carriers are unable to complete delivery and must send the shipment back to the origin. For beginners, RTS in this sense is the 'bounce' your package experiences when something prevents normal delivery. Understanding RTS helps reduce delivery failures, control costs, and improve customer communication.

Common reasons shipments become RTS:

• Incorrect or incomplete address — the most frequent cause.
• Recipient not available after multiple attempts, and no safe place is specified.
• Refused delivery — recipient declines the shipment (wrong item, unexpected charges, etc.).
• Customs refusal — international shipments returned due to missing or incorrect documents, duties unpaid, or prohibited goods.
• Carrier policies — perishable or hazardous items rejected under carrier rules.

What happens after RTS is triggered?

1. Carrier updates tracking to show RTS and typically attempts to return the parcel to the sender's address on file.
2. Sender receives notification (if tracking is monitored) and decides next steps: refund customer, resend after correcting address, or hold for customer pickup.
3. Financial reconciliation occurs — carriers may charge return freight, and the sender must decide who absorbs the cost.
4. Inventory and order systems must be updated to reflect returned goods and any next action (restock, inspect, or dispose).

Practical actions to reduce RTS occurrences:

• Validate addresses at checkout using an address verification API to catch typos or incomplete addresses.
• Provide clear delivery instructions and allow customers to choose delivery windows or pickup points.
• Display duties and taxes clearly for international shipments to reduce refusals on delivery.
• Use delivery notifications (email/sms) so recipients know when to expect the package and can arrange to be present.
• Offer alternate options like parcel lockers, pickup at carrier locations, or reschedule delivery to avoid returns.

How to handle RTS when it happens (best practices):

• Monitor tracking proactively so you can react quickly when a delivery attempt fails.
• Communicate with the customer immediately — confirm if they want re-delivery, refund, or pickup.
• Inspect returned items on receipt — some may be damaged by failed delivery attempts and require different disposition.
• Negotiate carrier return fees or include return shipping rules in your shipping policy to set customer expectations.

Common mistakes and how to avoid them:

• Assuming RTS will be processed automatically — many carriers require sender instructions for disposition.
• Not updating order status — leaving customers uninformed about returned items creates poor experience.
• Failing to track financial impact — repeated RTS events signal process issues that cost money.

Example scenario: An international marketplace seller ships a parcel but omits required customs invoice details. The destination customs office refuses entry and returns the parcel to the sender. The carrier marks the parcel as RTS. The seller receives the item back, files the correct paperwork, and resends the parcel — but pays return freight and faces a delayed customer delivery. The seller updates their international shipping checklist to prevent recurrence.

Operational tips for logistics teams:

• Include an RTS handling workflow within your returns and order management system to ensure quick, consistent responses.
• Use data to identify patterns — repeated RTS on certain zip codes, product types, or carriers points to fixable problems.
• Balance customer experience and cost — sometimes offering to cover re-delivery costs is better for retention, other times charging customers is appropriate.

Metrics to track for RTS in delivery operations:

• RTS rate (percentage of shipments returned)
• Primary causes of RTS (address issues, refusals, customs)
• Average cost per RTS (return freight, handling, restocking)
• Time to resolution (days from RTS to customer refund or re-shipment)

In summary, RTS (Return to Sender) marks a failed delivery that requires swift attention. For beginners, preventing RTS begins with accurate addresses, clear communication, and appropriate shipping documentation. When RTS happens, treat it as a teachable event — analyze causes, fix process gaps, and communicate clearly with customers to minimize costs and preserve satisfaction.