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Pricing & Return Optimization

Reverse Pricing & Return Margin Simulator

Marketplace algorithms are complex. Do not list blindly. Calculate either the exact listing price required to hit a target net profit or test the **profitability of a listing price** after factoring in marketplace fees, GST, separate RTO return splits, and courier damage overrides.

Interactive Model Parameters

The average profit margin you want to retain per shipped order.

%

RTO (Courier Return) Settings

%

Customer Return Settings (After Delivery)

%
%

Stock Damage % represents the percentage of product value (COGS) lost/damaged permanently when customer returns it.

Required Listing Price (M.R.P)941

List this product at 941 to clear a net average profit of 150 across shipped inventory factoring in returns.

Fulfillment Economics (Per 100 Orders)

Delivered Orders (70%) Net Payout292.86 / unit
RTO Orders (20%) Sunk Logistics-₹130.00 / unit
Customer Returns (10%) Payout Loss + Damages-₹290.00 / unit
Listing Price:940.33
Marketplace Commission (10%):-₹94.03
Inclusive GST Tax (18%):-₹143.44
Delivered Net Bank Payout:607.86
Expected Margin:15.95%

Why Separate RTO returns from Customer returns?

In Indian e-commerce (Meesho, Flipkart, Amazon), **RTO (Return to Origin)** and **Customer Returns** have completely different cost structures. RTO packages are returned unopened by the courier, meaning your product value (COGS) is fully recovered. However, **Customer Returns** are delivered products that were opened/tried by buyers. They suffer from high stock damage rates (missing items, damaged packaging, or customer fraud) and always incur reverse shipping fees.

RTO Shipping Charges:

Some marketplaces do not levy return shipping costs on RTO orders (for example, Meesho Supplier Panel does not bill reverse fees for courier returns). Our simulator lets you toggle "Portal charges RTO reverse fee" on or off to exactly match Amazon/Flipkart policies vs Meesho policies.

Stock Damage Loss %:

When an item is returned by a customer, there is a risk of product damage. If 50% of your returns cannot be resold, you effectively lose 50% of the COGS value. Our calculator incorporates this damage index into the expected profit formula to protect your cash flows.

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