How to Calculate Profit Margin on Meesho — Formula + Examples
The exact formula to calculate your true Meesho profit margin per order, including fees, shipping, returns and TCS — with a worked example.
TrackEcom Team
TrackEcom

How to Calculate Profit Margin on Meesho — Formula + Examples
Your true Meesho profit margin = (settled amount − product cost − all charges − return loss) ÷ order value. The number Meesho shows you is not your margin; only after subtracting product cost and every deduction do you see what you actually keep.
Key Takeaways
- Net profit = settled amount − product cost − charges − return loss.
- Margin % = net profit ÷ order value × 100.
- Calculate at SKU level, not just overall.
- Negative-margin SKUs silently drain your cash.
Worked Example
| Item | Amount |
|---|---|
| Order value | ₹400 |
| Product cost | −₹180 |
| Fees + shipping + TCS | −₹70 |
| Return buffer | −₹30 |
| Net profit | ₹120 |
| Margin % | 30% |
Why SKU-Level Matters
An overall "20% margin" can hide SKUs at −10%. Calculate per SKU to find and fix the losers. Use a free profit tool or a full Meesho profit dashboard to automate it.
FAQs
What is a good profit margin on Meesho?
After all deductions, 15–30% net is healthy for most categories. Below 10% leaves little cushion for returns.
How do I find my real Meesho margin?
Subtract product cost, all charges and return loss from the settled amount, then divide by order value.
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