₹1 Lakh Store
⌘K
GETTING STARTED
FIND — Get an Idea
VALIDATE — Hit PMF (Phase 3)
UNIT ECONOMICS — First (Phase 4)
    • Contribution Margin Model
    • COGS Breakdown Sheet
    • Break-Even Calculator
    • Gross Margin Benchmarks
    • Shipping Cost Optimization
    • Platform Fee Comparison
    • Price Sensitivity Testing
    • LTV:CAC Framework
    • Scenario Planning Tool
SCALE — Build to ₹1L/mo
AI & AUTOMATION
ANALYTICS & DATA
FINANCE
TOOLS & CALCULATORS
RESOURCES
  1. UNIT ECONOMICS — First (Phase 4)
  3. Gross Margin Benchmarks

07 — Unit Economics

Gross Margin Benchmarks

How does your margin compare to successful Indian D2C brands? Here are the numbers to beat.
40%+ Minimum CM50-60% Good CM60%+ Excellent CM3x Price:COGS

40%+

Minimum CM

Below this you can't scale

50-60%

Good CM

Healthy for most categories

60%+

Excellent CM

Best-in-class D2C brands

3x

Price:COGS

Minimum markup ratio

GM Benchmarks by Category

CategoryTypical GMBest-in-Class GMAvg Selling Price
Skincare55-65%70%+₹499-799
Haircare50-60%65%+₹399-599
Wellness55-70%75%+₹699-999
Fitness45-55%60%+₹499-999
Fashion40-55%60%+₹299-599
Food25-40%45%+₹199-499

How Top Indian D2C Brands Achieve 60%+ GM

Premium Positioning

Price above category average

Build brand story to justify premium

Use packaging as differentiation

Target quality-conscious buyers

Bundle Strategy

Sell 2-pack and 3-pack bundles

Bundle increases AOV by 40-60%

COGS per unit drops with bundles

Shipping cost amortized across bundle

Prepaid Push

Offer 5-10% discount on prepaid

Eliminate COD charges (₹20-40/order)

Reduce RTO by 50-70%

Faster cash flow (no 7-14 day delay)

Gross Margin — Must Complete