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Meesho Profit & Seller Commission Calculator

Compute net profit margin, Meesho commission, shipping fee, TCS/TDS, GST, and seller ROI.

Meesho Profit & Seller Commission Calculator: how it works

Most marketplace sellers calculate profit per delivered order and are surprised when the bank balance disagrees. The gap is the return rate.

What comes out of a sale

DeductionTypical basis
GSTBacked out of the listed price, which is GST-inclusive
Platform commission0% on many Meesho categories, 5–25% elsewhere
TCS under GST0.5% of taxable value
TDS under section 194-O0.1% of taxable value
ShippingA flat charge by weight and distance

The return rate is the real variable

A returned order earns nothing but still costs you forward shipping, reverse shipping and packaging. On categories like apparel, where return rates of 25 to 40 percent are normal, this single factor decides whether the business works.

Effective profit = (Profit per delivered order × (1 − r)) − (r × return cost)

r = return rate as a decimal

Worked example

Worked example · ₹499 selling price with a 25 percent return rate

Given

  • Selling price: ₹499 including 5% GST
  • Product cost: ₹220
  • Shipping: ₹70
  • Packaging: ₹15
  • Return cost: ₹120
  • Commission: 0%

Working

  1. 1GST backed out = 499 × 5 ÷ 105 = ₹23.76
  2. 2TCS + TDS on ₹475.24 = ₹2.85
  3. 3Net realisation = 499 − 23.76 − 2.85 − 70 = ₹402.39
  4. 4Profit per delivered order = 402.39 − 220 − 15 = ₹167.39
  5. 5Return loss spread over all orders = 0.25 × (120 + 15) = ₹33.75
  6. 6Effective = (167.39 × 0.75) − 33.75

Effective profit per order: ₹91.79, not ₹167

The headline figure overstates reality by 82 percent. At a 45 percent return rate the same listing would lose money on every order placed.

What to do about returns

  • Accurate sizing charts and multiple product photographs are the cheapest intervention available.
  • Categories differ enormously: electronics accessories run well under 10 percent, apparel far higher.
  • Price to your effective margin, not your delivered margin.
  • Track returns per SKU. One bad product can drag an otherwise healthy catalogue into loss.

Frequently asked questions

Back GST out of the selling price, deduct commission, TCS at 0.5 percent, TDS at 0.1 percent and shipping, then subtract product and packaging cost. Finally adjust for your return rate, which is usually the largest single factor.

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