Free Tool · Digital & Commerce

E-commerce Unit Economics & Contribution Calculator

After fees, shipping, returns and ads — what does one order actually leave behind?

Marketplace dashboards show revenue. Your bank account shows what survived fees, shipping, returns and ads. Enter the real stack; get contribution per placed order and the ad spend you can actually afford.

For: E-commerce / D2C Head·Free — no sign-up for results·Related service: E-commerce & Marketplace Growth
Returns assume 50% of product cost is recovered as resaleable stock — adjust your expectation accordingly. Fixed overheads are excluded by design.
Per-order contribution
₹278
per placed order, after expected returns and ads
Successful-order contribution₹466
Break-even ad cost per order₹428
Where the money goes
Selling price
₹1,500
Discount
₹0
GST
-₹229
Product cost
-₹600
Platform fee
-₹75
Payment fee
-₹30
Packaging
-₹30
Shipping
-₹70
Returns (expected)
-₹38
Ads per order
-₹150
Contribution / order
₹278
Your numbers stay in your browser until you choose to download or share.

How it works

GST is removed first (it was never your money), then product cost, platform and payment fees, packaging, forward shipping, an expected return cost (return rate × reverse cost with 50% goods recovery), and per-order ad spend.

Successful-order contribution and per-placed-order contribution are shown separately — the difference is what returns cost you.

Break-even ad cost = the most you can pay to acquire an order before it loses money. Fixed overheads are excluded deliberately and labelled.

Worked example

A ₹1,500 product with ₹600 landed cost, 5% marketplace fee, ₹70 shipping and 10% returns: the waterfall leaves roughly ₹219 per placed order before ads. Any acquisition cost above that is buying losses.

Illustrative figures, not a client outcome.

Questions, answered

Why remove GST first?

GST collected is passed to the government — it was never revenue. Calculating fees and margins on tax-inclusive prices overstates both and hides the real contribution.

How do I handle RTO (return to origin)?

RTO is worse than a normal return: you pay forward and reverse shipping and recover stock late. Increase the return rate and reverse cost to model it — watch what it does to per-order contribution.

Version 1.0 · Reviewed 2026-10 · Methodology is fixed and version-controlled; results depend on your inputs.

Marketplace revenue growing, contribution shrinking? Fix the economics.

BLEZZINGS runs this analysis inside a focused engagement — with your data, your market and a plan to act on it.