E-Commerce Profit & Settlement Calculator: Avoid Hidden Seller Losses
LabelCropTools product documentation · Updated
Many online sellers believe selling a product for ₹799 with a ₹300 sourcing cost guarantees ₹499 in profit. In reality, marketplace referral commissions, fixed closing fees, weight slab shipping, 18% GST, and 20% customer returns often leave the seller with razor-thin margins or net losses.
Understand marketplace deduction layers
Marketplaces deduct referral commission (0% to 18%), closing fees per order slab (₹5 to ₹50), forward shipping charges based on weight slabs (₹40 to ₹100+), and pick-and-pack fees.
On top of all marketplace fees, an 18% GST is deducted. While sellers can claim Input Tax Credit (ITC) if GST registered, it directly affects short-term cash flow.
The hidden cost of Return to Origin (RTO)
When a cash-on-delivery (COD) order returns undelivered, the seller loses packaging costs and frequently pays return shipping charges. Calculating your break-even RTO percentage tells you the maximum return rate your product can tolerate before losing money.
Set sustainable minimum selling prices
Always test your product pricing with an accurate calculator before launching catalog promotions or ad spend on marketplace platforms.
Tools for this workflow
Related reading
This guide describes the current product workflow, rather than a marketplace or printer certification. About this documentation · Report an issue · Product limitations