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The Business Inputs section is where you configure all the operational parameters that drive the RTO calculations. Every metric in the simulator updates in real-time based on these inputs.

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Component Location

Implemented in: src/components/InputSection.jsx:23-63

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Input Fields

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Monthly Orders

  • Default: 10,000 orders
  • Type: Number (min: 0)
  • Description: Total number of orders processed per month across all payment methods
  • Impact: Base volume for calculating revenue, RTO orders, and total losses

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Average Order Value (AOV)

  • Default: ₹1,500
  • Type: Currency (min: 0)
  • Prefix: ₹
  • Description: Mean value of each order placed
  • Impact: Used to calculate total revenue and realized revenue
Average Order Value should reflect the typical transaction value after discounts and before shipping costs.

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COD Percentage

  • Default: 60%
  • Type: Percentage (min: 0, max: 100)
  • Suffix: %
  • Description: Percentage of orders placed using Cash on Delivery
  • Impact: Determines how many orders are at risk of RTO (only COD orders can become RTOs)

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RTO Percentage

  • Default: 30%
  • Type: Percentage (min: 0, max: 100)
  • Suffix: %
  • Description: Percentage of COD orders that result in Return to Origin
  • Impact: Core metric for calculating RTO losses and break-even thresholds
Industry benchmarks suggest a healthy RTO rate is below 15%. Rates above 25% significantly impact profitability.

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Forward Shipping Cost per Order

  • Default: ₹60
  • Type: Currency (min: 0)
  • Prefix: ₹
  • Description: Cost to ship each order from warehouse to customer
  • Impact: Included in RTO loss calculation for returned orders

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Return Shipping Cost per RTO

  • Default: ₹60
  • Type: Currency (min: 0)
  • Prefix: ₹
  • Description: Cost to ship returned orders back to warehouse
  • Impact: Added to RTO loss per order (forward + return + product cost)

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Product Cost per Order

  • Default: ₹500
  • Type: Currency (min: 0)
  • Prefix: ₹
  • Description: Cost of goods sold (COGS) for each order
  • Impact: Represents blocked inventory or potential loss for RTO orders

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Validation Rules

  • All numeric fields accept only positive numbers or zero
  • Percentage fields are capped at 100%
  • Empty fields default to 0 (except percentage fields which retain their value)
  • Values are parsed as floats to support decimal inputs

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Reset Functionality

The “Reset” button (InputSection.jsx:36-43) restores all inputs to their default values: 
const handleReset = () => {
  setData(defaultData);
};
Use the Reset button to quickly return to example data if you want to compare different scenarios.

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Data Persistence

All input values are automatically saved to browser localStorage (App.jsx:43) whenever they change, ensuring your configuration persists across sessions: 
useEffect(() => {
  localStorage.setItem('rtoSimulatorData', JSON.stringify(data));
}, [data]);

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Example Configuration

Here’s a sample configuration for a mid-sized e-commerce business:
InputValue
Monthly Orders15,000
Average Order Value₹1,200
COD Percentage45%
RTO Percentage18%
Forward Shipping₹50
Return Shipping₹50
Product Cost₹400
This would result in approximately 1,215 RTO orders per month with significant financial impact.

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How Inputs Drive Calculations

These inputs feed into the calculateMetrics() function (calculations.js:1-57) which computes:
  • Total Revenue: monthlyOrders × averageOrderValue
  • COD Orders: monthlyOrders × (codPercentage / 100)
  • RTO Orders: codOrders × (rtoPercentage / 100)
  • RTO Loss per Order: forwardShippingCost + returnShippingCost + productCost
  • Total RTO Loss: rtoOrders × rtoLossPerOrder
See Metrics Display for detailed calculation breakdowns.