How to calculate Meesho seller profit
Meesho's 0% commission model removes two common marketplace charges, but it does not make every sale cost-free. Product cost, logistics, GST on applicable fees, returns, RTO and promotions still determine your actual margin.
Logistics GST = Logistics Fee × GST Rate
Return Reserve = Selling Price × Return / RTO Reserve Rate
Net Profit = Selling Price − Product − Logistics − GST − Return Reserve − Ads − Other
Why use a return reserve?
A reserve converts expected returns and RTO losses into a per-order planning cost. Replace the default percentage with your own historical return rate for a more useful forecast.
Meesho margin checklist
- Use the exact logistics charge for the product and destination.
- Include packaging and promotional discounts.
- Update the return reserve using your account data.
- Compare net margin, not only gross selling price.
Frequently Asked Questions
Does Meesho charge seller commission?
Meesho's official supplier pricing page advertises 0% commission and 0 collection fee. Sellers should still verify current terms and account-specific costs.
Why is GST included in the calculator?
GST may apply to logistics or other marketplace services. The calculator lets you model GST on the logistics amount using an editable rate.
What is a good Meesho profit margin?
A sustainable target depends on category, return rate and operating costs. Use net margin after returns and logistics rather than gross margin alone.