A ₹999 product with 5% GST. Landed cost ₹300, shipping ₹70 and packaging ₹20 per order, a 2.5% payment-gateway fee and ₹150 of marketing per order. 1,000 orders a month today, no shipping charged to customers. Each order leaves a CM3 of ₹386.45, or ₹3,86,454 a month.
Example 1: 20% off
The customer pays ₹799.20. Net revenue ₹761.14, fee ₹19.98, CM2 ₹351.16, CM3 ₹201.16. To earn today’s ₹3,86,450 a month: 3,86,450 ÷ 201.16 = 1,921.1 orders, so 1,922 orders, 92.1% more.
- Customer pays (incl. GST)
- ₹799.20
- Units in the order
- 1
- CM3 per order
- ₹201.16
- Orders a month to earn the same
- 1,922
- More orders needed
- 92.1%
Example 2: Buy 2 get 1 free
The customer pays ₹1,998 for 3 units. Net revenue ₹1,902.86, fee ₹49.95, CM2 ₹862.91, CM3 ₹712.91. 3,86,450 ÷ 712.91 = 542.1 orders, so 543 orders (45.8% fewer), or 1,627 units.
- Customer pays (incl. GST)
- ₹1,998.00
- Units in the order
- 3
- CM3 per order
- ₹712.91
- Orders a month to earn the same
- 543
- Fewer orders needed
- 45.8%
- Units a month
- 1,627
Example 3: 2 for ₹1,799
Net revenue ₹1,713.33, fee ₹44.98, CM2 ₹978.36, CM3 ₹828.36. 3,86,450 ÷ 828.36 = 466.5 orders, so 467 orders (53.3% fewer), or 934 units.
- Customer pays (incl. GST)
- ₹1,799.00
- Units in the order
- 2
- CM3 per order
- ₹828.36
- Orders a month to earn the same
- 467
- Fewer orders needed
- 53.3%
- Units a month
- 934
Example 4: ₹150 off
The customer pays ₹849. Net revenue ₹808.57, fee ₹21.23, CM2 ₹397.35, CM3 ₹247.35. 3,86,450 ÷ 247.35 = 1,562.4 orders, so 1,563 orders, 56.2% more.
- Customer pays (incl. GST)
- ₹849.00
- Units in the order
- 1
- CM3 per order
- ₹247.35
- Orders a month to earn the same
- 1,563
- More orders needed
- 56.2%
Example 5: Free shipping above an order value
The same product. Today customers buy 1 item per order and pay ₹59 shipping on it.
- CM3 per order today
- ₹441.17
- Contribution per extra item
- ₹626.45
- Items per order needed
- 1.09
- Free shipping pays for itself from
- ₹1,087 or more
Example 6: Pricing for a 20% CM3
The same costs, aiming to keep 20% of net revenue as CM3.
- Minimum selling price (incl. GST)
- ₹733
- Highest landed cost at ₹999
- ₹496
Our MIS & Reporting service tracks contribution by channel, SKU and campaign every month, so you can see what a sale actually earned.