What is NDR (Non-Delivery Report)?
Reviewed by CA Apurav GargLast reviewed
In short
An NDR (Non-Delivery Report) is the courier's notice that a delivery attempt failed, with the reason given. The seller must act on it quickly, or the shipment is usually returned to origin as an RTO.
What it is
When a courier cannot deliver a parcel, it records a non-delivery with a reason, such as customer not available, wrong or incomplete address, customer refused, or customer asked to reschedule. The list of these failed attempts, sent to the seller through the courier or shipping aggregator's dashboard, is the NDR.
Couriers usually allow a limited number of re-attempts and a short window for the seller to respond. If the seller does nothing, the parcel is sent back to origin, and the seller pays for both trips.
Why it matters
An NDR is the last chance to save an order before it becomes an RTO. Every RTO costs forward and return shipping and packaging, and earns nothing. Acting on NDRs is usually the fastest way to bring the RTO rate down, especially for cash-on-delivery orders.
How to act on NDRs
- Check the NDR list at least daily. Most aggregators let you act on each NDR in the dashboard or through an integration.
- Contact the customer by call, SMS or WhatsApp to confirm they still want the order, the right address and a good time.
- Choose the action: re-attempt, re-attempt with an updated address or phone number, or let it return if the customer has cancelled.
- Check the courier's reason. Some "customer not available" NDRs are raised without a real attempt. Ask for proof, such as a call record, if a pattern appears for one courier or area.
Reading NDR data
Track NDRs by reason, courier, pin code and payment method. Patterns help prevent NDRs before they happen:
- Many address NDRs: improve address checks at checkout.
- Many refusals on COD: confirm COD orders before dispatch, or encourage prepaid payment.
- Many NDRs in certain pin codes or with one courier: change the courier allocation there.
On marketplaces, the marketplace's logistics handles failed deliveries itself. You see the result as RTOs in your returns reports, not as NDRs to act on.
Example in rupees
A brand ships 1,000 orders in a week through a shipping aggregator. 120 get an NDR on the first attempt:
| NDR reason | Orders | Action taken |
|---|---|---|
| Customer not reachable | 50 | Called and messaged; new time agreed |
| Customer asked to reschedule | 30 | Re-attempt booked for the requested day |
| Address incomplete | 20 | Customer confirmed the address; updated with the courier |
| Customer refused (COD) | 20 | Confirmed cancellation; no re-attempt |
| Total | 120 |
Of the 100 orders re-attempted, 70 are delivered. The other 50 orders, 30 that failed again plus the 20 refused, return as RTO. Without the follow-up, most of the 120 would have become RTOs.
At an RTO cost of ₹135 an order, the 70 orders saved are worth ₹9,450 in shipping alone, plus the margin on the 70 sales. The figures are illustrative.
Related terms
Work it out for your business
Want help applying this to your own accounts?
We handle bookkeeping, reconciliation, GST and TDS for D2C and marketplace sellers, and can walk you through how this works in your business.
General information only, not professional advice. Rules and rates change — check the official source before you act.