ComplyLocal - Business Registration & Compliance Services
Revenue is vanity. Contribution is sanity.

E-commerce Profitability Analysis - Know Your True Profit on Every SKU, Every Order

Computed by Chartered Accountants. Not by dashboards guessing.

SKU-level true contribution after marketplace fees, RTO, shipping, payment fees, allocated ads, packaging and storage, with break-even ROAS built into decisions.

  • True contribution per SKU and marketplace
  • Nine hidden variable costs allocated to product level
  • Break-even ROAS calculated from contribution margin
  • RTO, storage and slow-mover analysis
  • Kill, scale or reprice recommendations reviewed by a CA

Check my SKU profit

Our expert will call you within 2 hours

  • 4.9 star Google
  • 10,000+ Filed
  • CA-led team
Or chat on WhatsApp

Platforms we work with

  • Amazon logo
  • Flipkart logo
  • Meesho logo
  • Myntra logo
  • Nykaa logo
  • Ajio logo
  • JioMart logo
  • Snapdeal logo
  • ONDC logo
  • Shopify logo

Fee structures we decode, platform by platform.

9

Hidden costs allocated to every SKU

Fees, shipping, RTO, ads, packaging and storage

1 / CM%

Break-even ROAS formula

Contribution margin sets the ad ceiling

4

Ageing buckets for slow movers

0-30, 31-60, 61-90 and 90+ days

SKU

The level real profit lives at

Not blended marketplace dashboards

Quick ROAS check

Is your ROAS actually profitable?

Three quick inputs show whether your ad number deserves a SKU-level contribution review.

Question 1 of 3

What is your usual selling price band?

SKU-level profit math

E-commerce Profitability Analysis for Indian Online Sellers

Our ecommerce profitability analysis computes product-wise profitability from settlement, ad, shipping, payment and inventory data. The output is true contribution per SKU, not a platform dashboard that stops at sales and headline ROAS.

The model connects with e-commerce accounting and bookkeeping and monthly MIS and KPI reporting, so the profit math is reconciled to books, tax credits and marketplace settlements before you scale, kill or reprice SKUs.

Check SKU profitability

What is true contribution per SKU?

E-commerce profitability analysis is the SKU-level computation of true contribution: selling price minus marketplace commission, shipping, RTO losses, payment fees, allocated ad spend, packaging and storage, so you know which products fund your growth and which quietly burn it.

For a Rs.1,000 sale, the waterfall may remove Rs.150 commission, Rs.80 shipping, Rs.45 RTO allocation, Rs.20 payment fees, Rs.200 allocated ads and Rs.60 packaging or storage. That leaves Rs.445 before product cost and fixed overheads. If the product cost is Rs.430, the SKU is barely alive even though the dashboard shows a sale.

True Contribution per SKU is the canonical number this page owns. It works because settlement reports carry the fee data most sellers ignore: commission slabs, fixed fees, weight handling, storage, ad recovery and return costs mapped back to the product.

True profit is a waterfall, not a headline sales number.

Profit waterfall

The profit waterfall shows what the dashboard hides

A platform P&L may stop at revenue and fees. We keep walking the order down through shipping, RTO, payment costs, ad allocation, packaging, storage and GST-on-fees ITC so contribution is not inflated.

  • Rs.1,000 sale can shrink to Rs.445 before product cost
  • RTO and return shipping are allocated to the SKU
  • GST on fees and ads is netted where eligible
Build my waterfall

Break-even ROAS = 1 / contribution margin percentage.

Break-even ROAS

Break-even ROAS is the number your ad dashboard will not protect

Break-even ROAS equals 1 divided by contribution margin percentage. At 20% contribution, ROAS must be 5.0. At 25%, it must be 4.0. At 33%, it can fall near 3.0 before ads start losing money.

  • CM 20% -> break-even ROAS 5.0
  • CM 25% -> break-even ROAS 4.0
  • CM 33% -> break-even ROAS about 3.0
Calculate break-even ROAS
Decision table

Platform P&L vs CA-built profitability

FactorPlatform dashboardRecommendedCA-built profitability
Fee verificationShows charged feesChecks fee logic against settlements
RTO allocationOften blendedAllocated by order or SKU
Ad spend by SKUCampaign-level viewAllocated to product contribution
GST-on-fees ITC nettingUsually ignored in marginNetted where eligible
Returns timingDashboard timing variesMatched to accounting period
Storage accrualNot always visible by SKUAdded to slow-mover analysis

← Scroll →

Use platform dashboards for operations. Use CA-built contribution statements for product decisions.

Review my SKU margin
Profit workflow

How we compute true contribution

  1. 1

    Settlement, ads and courier data ingestion

    Step 1

    Marketplace fees, ad exports, courier/RTO data and payment reports are collected.

    • Settlements
    • Ads
    • Courier
  2. 2

    Cost mapping rules per SKU

    Step 2

    Costs are mapped exactly where possible and allocated by documented rules where needed.

    • Fee rules
    • Allocation logic
  3. 3

    Monthly contribution statement

    Step 3

    SKU, marketplace and channel-level contribution is computed after variable costs.

    • SKU report
    • Channel report
  4. 4

    Slow-mover ageing review

    Step 4

    Inventory ageing buckets are matched with storage fees and sell-through.

    • 0-30
    • 31-60
    • 61-90
    • 90+
  5. 5

    Kill, scale or reprice recommendations

    Step 5

    Your CA reviews the numbers with you so decisions are grounded in contribution, not vanity revenue.

    • Kill
    • Scale
    • Reprice
Hidden loss

Your best-selling SKU might be your biggest loss

High-velocity, high-RTO, ad-heavy SKUs can run negative contribution while volume hides the damage. SKU-level math exposes whether growth is funding profit or burning cash.

High sales, low contribution

Fast-moving products are reviewed after every variable cost.

RTO destroys COD margin

Forward and reverse shipping are allocated to the product.

Ageing reveals storage drag

Slow movers are tied to stock age and storage fees.

Plans

Profitability plans by SKU count

Final pricing depends on SKU count, platforms, ad channels and historical cleanup.

Focused SKU Review

For sellers who want key products reviewed first.

Custom/mo

  • Up to 50 SKUs
  • Contribution waterfall
  • Break-even ROAS
  • Inventory ageing deep dive
Ask for quote
Popular

Full Catalogue Profit

For sellers managing large catalogues and ad spend.

Custom/mo

  • SKU-level contribution model
  • Ad and RTO allocation
  • Slow-mover analysis
  • CA review recommendations
Start profit review
Problems solved

The profit leaks hidden behind top-line sales

The risk

Profitable on dashboard, broke in the bank

Dashboard sales do not include all deductions, timing and tax-credit effects.

How we handle it

We reconcile contribution to settlements, books and bank outcomes.

The risk

RTO eating margin invisibly

Returned COD orders carry forward and reverse logistics costs.

How we handle it

RTO cost is allocated to the SKU instead of dumped into courier expense.

The risk

Ad spend not allocated to products

A blended ROAS can hide SKU-level losses.

How we handle it

Ad cost is mapped by campaign, attributed sales or agreed allocation rule.

The risk

Dead stock accruing storage fees

Slow movers quietly absorb storage and working capital.

How we handle it

Ageing buckets reveal stock that needs repricing, bundling or exit.

Dashboard vs CA statement

Analytics tools estimate. Reconciled contribution proves.

Filing it yourself

  • Tool dashboards depend on platform-side assumptions.
  • RTO, storage and payment fees may stay blended.
  • GST-on-fees credit is often ignored in costing.
  • Ad ROAS is read without contribution margin.

Filing with ComplyLocal

  • Fees are reconciled to settlement data.
  • RTO, shipping, ads and storage are allocated to SKUs.
  • Eligible ITC is netted into the cost model.
  • Break-even ROAS is calculated before scale decisions.
Get CA-verified contribution
Related services

Connect profit math to accounting and reporting

Find the SKUs that fund growth and the ones burning cash

We compute true contribution, break-even ROAS and slow-mover risk from reconciled seller data.