Yes, you will be compensated for undelivered items less the returned items to you. All the items that are not suitable to be returned to you will remain under the status "Items Undelivered" in the Seller Invoice.
You can view further details under the Finance section in Partner Portal:
1) Select a month to view more details.
2) Scroll down to the end to the Invoices of the Month:
3) Click on "Seller Invoice" to see which are the items that will be returned to you and items that remains as undelivered.
In this case of undelivered items, we are going to pay for the items at the retail price "discounted" of the RedMart commission as if a customer would - and this will be reflected in your invoice accordingly as seen below in item (d) and (i).
Learn how commission is calculated for GST and non-GST registered sellers here.