RTS Shipping Explained: What ‘Return to Sender’ Means, Common Causes, and How to Prevent It

When shipping packages, you may come across the term RTS, which stands for “Return to Sender.” This occurs when a carrier cannot deliver a package and sends it back to the original shipper. For eCommerce businesses, RTS events mean extra costs, frustrated customers, and logistical headaches.

In this guide, we’ll cover:

• What RTS means in shipping

• The most common causes of RTS

• The hidden costs associated with return-to-sender shipments

• How to prevent RTS (and save money)

• How platforms like ShipGenius can help reduce RTS events

  
  

What Does RTS Mean in Shipping?

RTS, or Return to Sender, happens when a package is undeliverable and is returned to the shipper. Carriers like UPS, USPS, FedEx, and DHL mark packages as RTS when delivery attempts fail due to incorrect addresses, customer refusal, or other issues.

Key points about RTS:

• It can occur at any stage of the shipping process.

• Carriers may charge extra fees for RTS packages.

• RTS shipments can delay your delivery times and hurt customer satisfaction.

• It is sometimes completely out of your control, but can be mitigated by taking the proper steps.

Common Causes of RTS Shipments

RTS events are usually preventable. The main causes include:

1. Incorrect or Incomplete Address

A missing apartment number or a typo in the street name is one of the top reasons for failed deliveries.

2. Customer Refusal

If the customer changes their mind, refuses to pay duties, or declines the package at the door, it triggers RTS.

3. Failed Delivery Attempts

Carriers like UPS and FedEx usually attempt delivery 1–3 times. If the recipient isn’t available, the package is returned.

4. Damaged Packages

Carriers may automatically RTS a package if it’s significantly damaged in transit.

5. Restricted or Prohibited Items

Shipping restricted items without proper documentation may cause RTS by customs or carriers.

The Hidden Costs of RTS

RTS events can quietly eat into your margins. Common costs include:

• Extra shipping charges (often the full return rate)

• Lost product value if items can’t be resold

• Increased customer support time dealing with complaints

• Damage to your brand reputation due to delivery delays

How to Prevent RTS Shipments

1. Validate Customer Addresses

Use address validation tools or platforms like ShipGenius that automatically check for missing or incorrect data.

2. Communicate Delivery Expectations

Provide customers with tracking information and delivery notifications to avoid missed attempts.

3. Confirm International Duties & Taxes

Make sure customers know about customs fees or duties to prevent refusal.

4. Use Quality Packaging

Sturdy, well-sealed packaging reduces the risk of carrier returns due to damage.

5. Offer Easy Returns

Sometimes, a smooth return process reduces RTS because customers don’t reject packages outright.

RTS Across Popular Shipping Platforms

Competitors like ShipStation, Pirate Ship, and EasyPost provide basic RTS tools, but often lack real-time address correction and automation.

ShipGenius goes a step further by:

• Automatically validating addresses before label creation

• Flagging high-risk shipments that could trigger RTS

• Offering analytics on RTS trends to help reduce errors

FAQs About RTS Shipping

1. Who pays for RTS shipments?

Usually, the shipper is responsible for both the outbound and return shipping costs.

2. Can an RTS package be redirected?

Some carriers (like UPS) allow you to intercept or redirect RTS packages for a fee.

3. Does RTS affect delivery speed for other packages?

No, but it can slow down your ability to serve customers due to time spent resolving returns.

Conclusion

RTS (Return to Sender) shipments are a common pain point for eCommerce businesses, but they’re not inevitable. By validating addresses, improving communication, and using a smart shipping platform like ShipGenius, you can dramatically reduce RTS rates and improve customer satisfaction.