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.
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.
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.
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.