Clothing & Apparel Calculator
Calculate product costing for clothing, fashion, and apparel with high return rate buffers.
Cost & Fee Inputs
Marketplace Fees & Returns
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Profit Margin Summary
Recommended Selling Price (MRP)
₹637.74
25.00% Net Margin
Total Landed Cost:
₹478.30
Break-Even Price:
₹418.57
Net Profit per Unit:
₹159.43
Return Buffer Cost:
-₹10.00
Platform Margin Comparison for ₹600 Item
| Platform | Commission | Shipping Est. | Net Profit (Est.) | Margin |
|---|---|---|---|---|
| Amazon | 15% | ₹60 | ₹178.40 | 29.7% |
| Flipkart | 12% | ₹45 | ₹217.00 | 36.2% |
| Shopify | 0% | ₹70 | ₹280.60 | 46.8% |
| Meesho | 0% | ₹40 | ₹314.00 | 52.3% |
| Blinkit | 18% | ₹25 | ₹222.00 | 37.0% |
| Zepto | 17% | ₹25 | ₹228.00 | 38.0% |
| Swiggy | 18% | ₹28 | ₹216.88 | 36.1% |
| Nykaa | 22% | ₹50 | ₹145.00 | 24.2% |
| Myntra | 20% | ₹55 | ₹138.80 | 23.1% |
| Ajio | 18% | ₹50 | ₹163.00 | 27.2% |
| JioMart | 10% | ₹40 | ₹247.00 | 41.2% |
| Etsy | 6.5% | ₹150 | ₹159.00 | 26.5% |
| Custom | 0% | ₹60 | ₹297.00 | 49.5% |
What is the Ideal Profit Margin in Ecommerce?
25% – 35% Recommended Sweet SpotIn Indian ecommerce (Amazon, Flipkart, Meesho, and Shopify D2C), maintaining an ideal net profit margin of 25% to 35% is vital to buffer against customer returns (RTO), platform commissions, payment gateway deductions, and advertising costs (CAC).
| Category / Niche | Gross Margin | Ideal Net Margin | Key Business Factors |
|---|---|---|---|
| 📱 Electronics & Accessories | 25% – 35% | 12% – 18% | High sales volume, price competition, low returns (3-5%) |
| 🛒 FMCG, Food & Grocery | 30% – 40% | 15% – 22% | High repeat purchase rate, short shelf-life |
| 🏠 Home Decor & Kitchenware | 50% – 60% | 25% – 35% (Ideal) | Standard returns (8-12%), healthy unit profitability |
| 👗 Fashion, Apparel & Saree | 60% – 70% | 30% – 45% | High RTO / returns (18-30%) require larger safety markup |
| 💄 Cosmetics & Beauty D2C | 70% – 85% | 40% – 60% | Low parcel weight, high ad CAC, strong repeat brand loyalty |
| 💍 Jewelry & Fashion Accessories | 75% – 90% | 50% – 70% | Minimal shipping weight, highest markup potential |
Understanding Clothing & Apparel Costs
The Clothing & Apparel category presents unique challenges for ecommerce sellers, particularly regarding packaging costs (₹25 average) and return rates (20%).
Our Clothing & Apparel product costing calculator helps you determine the optimal selling price. It takes into account your landed cost, marketplace fees, and the specific logistics costs associated with your niche to ensure you maintain a healthy bottom line.
Frequently Asked Questions
In the Clothing & Apparel niche, a net margin of 15% to 25% is generally considered healthy, provided you accurately account for packaging (₹25) and returns (20%).
You should aim for at least a 2.5x to 3x markup on your landed cost to absorb marketplace commissions, free shipping offers, and return losses.
Product Cost (COGS) is the direct procurement or manufacturing cost to produce one unit of your product. It includes supplier purchase price or raw materials plus direct labor per unit.
Packaging Cost includes all protective and branding materials used to pack an individual product safely for transit, including boxes, bubble wrap, polybags, security tapes, brand stickers, and invoice pouches.
Inbound Freight is the bulk transport cost to bring inventory from suppliers to your warehouse. Outbound Shipping is the individual courier delivery charge paid to logistics carriers (Shiprocket, Delhivery, Amazon Easy Ship) to deliver the parcel to the customer.
Expected Return Rate is the percentage of fulfilled orders that get returned by customers or returned as RTO (Return to Origin on failed COD deliveries). Sellers must buffer reverse shipping costs across successful orders to protect profits.
Platform Referral Fee is the percentage commission charged by marketplaces (Amazon, Flipkart) on each sale. Closing / Fixed Fee is a flat transaction fee charged per sold unit based on price tiers.
Total Landed Cost is the sum of product cost, packaging, shipping, platform fees, marketing (CAC), and return buffers. Break-Even Price is the minimum selling price where Total Revenue equals Total Costs (Zero Profit).