How to Block Shiprocket & Delhivery High-RTO Pincodes in Shopify Checkout

Key Takeaways & Quick Workflow

1. Export the Risk Data: Download your RTO Risk Report from your Shiprocket Analytics dashboard or Delhivery One NDR console.
2. Filter the Top 10% Riskiest Pincodes: Identify delivery postal codes with >35% return-to-origin rates.
3. Block COD at Checkout: Import those pincodes into Lokally's Payment Rules to automatically hide Cash on Delivery (COD).
4. Add a Prepaid Incentive: Give shoppers in those restricted pincodes ₹50–₹100 off on UPI to maintain sales conversion while eliminating return losses.

If you operate a Shopify D2C store in India shipping via 3PL aggregators like Shiprocket, Delhivery, Bluedart, or Shadowfax, you already know the pain of Return to Origin (RTO).

Courier companies charge you forward shipping (₹60–₹120) and reverse return shipping (₹80–₹150) whenever a shopper refuses a COD delivery. Over 60% of these rejected shipments originate from a concentrated cluster of high-risk delivery pincodes.

While courier panels like Shiprocket flag high-RTO risk after the order is placed, the most profitable brands stop the problem before checkout occurs. In this guide, we'll walk you through how to export high-RTO pincodes from your courier partner and block COD on Shopify automatically.

Step 1: Export High-RTO Pincodes from Shiprocket

If you ship via Shiprocket:

1. Log into your Shiprocket Dashboard.
2. In the left navigation menu, go to Analytics & Reports → Order Analytics.
3. Select the date range for the last 90 or 180 days (this gives you statistically reliable data).
4. Click on the RTO Breakdown or NDR (Non-Delivery Report) Funnel.
5. Select Export Orders as CSV.
6. Open the exported spreadsheet in Google Sheets or Microsoft Excel.
7. Create a Pivot Table:
   • Rows: Delivery Pincode (or Destination Pincode).
   • Values: Count of Order ID, Count of RTO Orders.
   • Calculated Field: RTO Rate = RTO Orders / Total Orders.
8. Filter for pincodes with more than 5 total orders and an RTO rate exceeding 35%.
9. Copy this column of 6-digit pincodes.

Step 2: Export High-RTO Pincodes from Delhivery One

If you use Delhivery One or Delhivery Direct:

1. Log in to the Delhivery One Portal.
2. Navigate to Insights / Reports → Performance Reports.
3. Select RTO / NDR Summary Report.
4. Download the Zone / Pincode Summary CSV.
5. Sort by Return Percentage in descending order.
6. Extract the high-return pincodes into a single column.

Step 3: Format Your Pincode CSV for Lokally

Lokally accepts clean CSV or plain text lists of postal codes. Your file should simply contain one 6-digit Indian pincode per row:

pincode
110006
201301
226010
800001
842001

Save the file on your computer as high-rto-pincodes.csv.

Step 4: Configure the Payment Rule in Lokally

To prevent customers in these pincodes from selecting Cash on Delivery:

1. Open your Shopify Admin and go to Apps → Lokally.
2. In the Lokally sidebar, click Payment Rules.
3. Click Add Rule.
4. Set the rule parameters:
   • Rule Name: Block COD - Shiprocket High RTO Pincodes.
   • Action: Hide Payment Method.
   • Payment Method: Select Cash on Delivery (COD).
5. Under Location Settings:
   • Select Location Type: Pincode.
   • Click Upload CSV and upload your high-rto-pincodes.csv.
6. Click Save and Publish.

Because Lokally uses Shopify Functions (Payment Customization API), the rule executes instantaneously on Shopify's native checkout servers. When a customer enters an address in one of your flagged pincodes, the Cash on Delivery radio button disappears instantly.

Step 5: Convert Genuine Buyers with a Prepaid Incentive

A common mistake merchants make is simply disabling COD without offering an alternative. Shoppers in Tier 2 and Tier 3 cities who genuinely want your product might think your store is broken.

To maximize revenue while eliminating return risks:

1. In Lokally, go to Regional Pricing → New Rule.
2. Select the same high-RTO pincode list.
3. Add a Fixed Discount of −₹50 or −₹100 (e.g., "Special ₹50 Prepaid Instant Discount").
4. Add a storefront location banner in Lokally:

   "Delivery to your pincode is prepaid only. Enjoy ₹50 OFF + Free Express Shipping at checkout via UPI or Card!"

This simple incentive converts 50% to 70% of former COD shoppers into secure, non-returnable prepaid orders.

What Shoppers See at Checkout

Frequently Asked Questions

Will blocking high-RTO pincodes hurt my overall sales?

Data shows that blocking the top 8–10% riskiest pincodes reduces overall RTO by 40–60% with only a 3–5% impact on gross orders. When paired with a ₹50 UPI discount incentive, net revenue actually increases due to saved courier return penalties.

Can I still deliver to these pincodes if customers pay online?

Yes! Lokally does not block the delivery pincode completely—it only hides the Cash on Delivery option. Customers can still complete their purchase using UPI, Google Pay, PhonePe, Paytm, or Credit/Debit Cards.

How often should I update my high-RTO pincode list?

We recommend reviewing your Shiprocket or Delhivery NDR logs every 60 to 90 days. RTO patterns tend to be geographically stable, so quarterly updates are sufficient to keep return rates low.

Related reading: India E-commerce RTO Statistics (2025–2026) and How to Set Up Payment Method Rules on Shopify.