Your ₹40 margin might be a loss. Every return costs you ~₹160. Find your real profit after returns, GST and packaging — and the exact price you should list at.
What one unit costs you (purchase + transport).
Total ad spend ÷ total orders. Leave 0 if no ads.
Clothing up to ₹2,500 → 5%. Above ₹2,500 → 18% (GST 2.0, Sept 2025).
The shipping price Meesho shows on your catalog. You pay 18% GST on it — ₹10.08 deducted on every delivered order.
The price the customer pays. GST is included inside it.
Meesho average is 15–25%. Fashion & sarees often run higher.
The full amount deducted from your settlement per return.
Out of every 100 returns, how many come back broken? Their full product cost is lost.
🚨 YOU ARE LOSING MONEY
Real average profit per order, all costs included
−₹10.73
| Delivered orders (85) — salesforward shipping is paid by the customer | ₹11,900 |
| Product cost (85 units sold)undamaged returns go back to stock | −₹8,500 |
| Shipping GST (18% of ₹56 × 85 delivered) | −₹857 |
| Packaging (100 orders) | −₹500 |
| Ad cost (100 orders) | −₹0 |
| Return shipping (15 returns × ₹160) | −₹2,400 |
| Damaged returns (1.5 units — product cost lost) | −₹150 |
| GST paid to governmentGST on returned orders is reversed via credit notes | −₹567 |
| Net Loss per 100 orders | −₹1,073 |
* Meesho charges 0% commission and the customer pays the shipping price — but 18% GST on that shipping is deducted from your settlement on every delivered order, and the full return shipping fee on every return. TCS (0.5%) and TDS (0.1%) are also deducted but come back as tax credits when you file returns, so they are not counted as costs here.
A new seller buys a kurti for ₹100 and lists it at ₹140, expecting ₹40 profit per order. Here is what 100 orders actually look like at a normal 15% return rate:
The killer is the return rate: returns don't just cancel one sale — each one burns real cash on two-way shipping while earning nothing. That's why a product can be profitable at 10% returns and bleeding money at 18%. Use the calculator's "max return rate you can survive" number before you price anything.
Forward shipping is paid by the customer — but every return costs you a shipping fee (default ₹160) plus dead packaging. Broken returns are worse: the full product cost is gone too.
Meesho prices include GST. Apparel up to ₹2,500 → 5%, above → 18%. GST on returned orders is reversed via credit notes. Buy with a pakka bill? Purchase ITC is set off automatically.
Meesho charges 0% commission. TCS (0.5%) and TDS (0.1%) are deducted but refunded as tax credits when you file — so the calculator shows true profit, not confusing settlement math.
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