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Marketplace Seller Fee Calculator

Marketplace economics after commission, logistics and returns. A return does not just cancel a sale: the outbound cost is already spent and the return shipping is charged again, so a twelve percent return rate costs far more than twelve percent of profit.

Also called: amazon seller calculator, flipkart fee calculator.

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Profit per sale after returns
₹613

₹613 per sale after a 12% return rate, from ₹674 before returns. Total marketplace costs are ₹425, which is 21.25% of the selling price.

Profit before returns
₹674
Marketplace costs
₹425
Fees as a share of price
21.25%
Settled to you per sale
₹1,574
Net margin
30.66%
Price needed to break even
₹1,278
Method and background

How this is calculated

Commission, shipping and collection all come off the selling price. Returns are the part that catches sellers: the item ships out, comes back, and both legs are charged, so a returned order costs money rather than merely making none. At double-digit return rates in categories like apparel, the return provision is often larger than the net margin, which is why the break-even price is shown.

a return costs the fees twice over and returns the product in unknown condition
P
Selling price
r
Return rate

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

an apparel listing

Selling price
₹1,999
Marketplace commission
15%
Shipping charged to you
₹85
Payment collection fee
₹40
Your cost of the product
₹900
Return rate
12%
Tax on the sale
18%

Profit per sale after returns₹613

15% of 1999 plus 85 plus 40

Open this example

no returns keeps the gross profit

Selling price
₹1,999
Marketplace commission
15%
Shipping charged to you
₹85
Payment collection fee
₹40
Your cost of the product
₹900
Return rate
0%
Tax on the sale
18%

Profit per sale after returns₹674

boundary

Open this example

Method and limits

What it assumes

  • Returned goods are resellable, which in apparel is often optimistic.

What it deliberately does not model

  • Advertising on the marketplace is not included and is usually necessary.
  • Tax treatment of marketplace supplies varies and is simplified here.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Why do returns hurt so much?
Because both shipping legs are charged and the commission on the original sale is often not fully refunded. One return can wipe out the profit on several completed orders.