02 — Product
3x+
Minimum Markup
Product cost to selling price
₹400-799
Sweet Spot AOV
Indian D2C optimal range
<5%
Return Rate Target
Quality threshold
3x
minimum markup needed for viable D2C
If you can't sell for 3x what it costs, the unit economics don't work
| Criteria | Weight | Why It Matters | Check |
|---|---|---|---|
| Proven Demand | 25% | People are already buying similar products | Must Have |
| 3x+ Markup Potential | 20% | Selling price ≥ 3× product cost | Critical |
| Low Competition Gap | 15% | Room for new brand in the space | Important |
| Sourcing Feasibility | 15% | Available suppliers in India | Important |
| Shipping Friendliness | 10% | Light, durable, small = better margins | Nice |
| Regulatory Simplicity | 5% | No FSSAI/BIS = faster launch | Bonus |
| Category | Avg AOV | Typical Gross Margin | Competition | Shipping | Verdict |
|---|---|---|---|---|---|
| Skincare | ₹499-799 | 55-65% | High | Easy | Competitive |
| Haircare | ₹399-699 | 50-60% | Medium | Easy | Good Entry |
| Supplements | ₹599-999 | 60-70% | Medium | Easy | Good Entry |
| Fashion Accessories | ₹299-599 | 50-65% | Very High | Easy | Crowded |
| Home Décor | ₹699-1499 | 45-55% | Low | Hard | Niche |
| Fitness | ₹499-999 | 50-65% | Medium | Medium | Good Entry |
Note: These are gross margins (price − COGS). Contribution margin after shipping, packaging, and gateway is typically 20-30% lower.
Amazon India Best Sellers
See what's actually selling in your category
Meesho Trending
Price-sensitive demand signals
Instagram Hashtag Search
See what products influencers are promoting
Sources: Amazon India Best Sellers, Meesho Trending, Instagram Commerce Insights, IndiaMART Category Trends