Chandan Singh, an ecommerce seller, reveals the actual costs and profit margins for a product sold online, breaking down manufacturing, shipping, packaging, and platform fees. He explains pricing strategies across marketplaces like Flipkart, Amazon, and Meesho, and emphasizes the importance of doubling costs and selling stories over products.
A short editorial from the VEONIB team on why this content matters.
Chandan Singh provides a transparent breakdown of ecommerce costs and pricing, emphasizing that doubling costs is essential for sustainable profit.
Unlike typical ecommerce advice, this video reveals actual numbers and stresses selling stories over products, a unique angle for organic customer engagement.
Aspiring ecommerce sellers in India should watch this video to understand real profit margins and adopt a story-driven selling approach.
Buying and selling goods online through platforms like Amazon and Flipkart.
The difference between the cost to produce and the price at which a product is sold.
The expense of producing or sourcing a product from suppliers.
The fee charged for shipping a product to customers.
Expenses for materials and labor to package a product for shipping.
The percentage of sold items that customers send back for a refund.
The method of setting a product's selling price to maximize profit and competitiveness.
Charges imposed by ecommerce platforms for listing and selling products.
How much does it cost to manufacture the product?
The manufacturing cost is approximately ₹80, but it can vary based on locality and supplier.
What is the delivery cost for the product?
Delivery cost ranges from ₹80 to ₹100 depending on size and weight.
Are there hidden charges on platforms like Flipkart and Amazon?
Yes, there are hidden charges like logistics fees, typically ₹5-6 per product.
How much does packaging add to the cost?
Packaging, including materials and small gifts, adds about ₹20 to the total cost.
What is the total cost per product?
The total cost per product is around ₹185, including manufacturing, delivery, platform fees, and packaging.
At what price should I list the product?
List at double your total cost, so around ₹350-₹360, to cover returns and profit.
Why is it important to double the cost?
Doubling the cost ensures you cover return charges and still make a profit.
Can I sell at a low margin to get more orders?
No, low margins can lead to bankruptcy because returns and fees will eat into your profit.
How do returns affect profit?
Returns can wipe out profits; if 3 out of 10 items are returned, you may incur a loss.
What is the best way to sell online?
Sell the story behind the product to connect with customers and build trust.