⌘K
GETTING STARTED
FIND — Get an Idea
VALIDATE — Hit PMF (Phase 3)
UNIT ECONOMICS — First (Phase 4)
SCALE — Build to ₹1L/mo
AI & AUTOMATION
ANALYTICS & DATA
FINANCE
TOOLS & CALCULATORS
RESOURCES
Phase 7 of 13 — Supply Chain · Days 54-63
30-50
First Units
Minimum viable inventory
₹55-65
Shipping Cost
Per 500g shipment
25-40%
COD RTO Rate
Industry average in India
7-14 days
Reorder Lead Time
Plan inventory accordingly
₹55-65
per shipment — the hidden cost most founders ignore
This includes pickup, transit, delivery — but NOT return shipping for RTO
| Cost Component | Amount | % of Revenue | Notes |
|---|---|---|---|
| Selling Price | ₹599 | 100% | Your MRP |
| Product Cost | ₹120-150 | 20-25% | 3x+ markup from supplier |
| Shipping Cost | ₹55-65 | 9-11% | 500g zone B via aggregator |
| Packaging | ₹20-30 | 3-5% | Mailer box + thank you card |
| Payment Gateway (2%) | ₹12 | 2% | Razorpay/Cashfree |
| RTO Buffer (8-10%) | ₹48-60 | 8-10% | Average RTO cost per order |
| Marketing CAC | ₹150-300 | 25-50% | Meta/Google ads |
| Net Profit/Order (Target) | ₹100-140 | 17-23% | Target |
| Courier | 500g Zone A | 500g Zone B | 500g Zone C | Best For |
|---|---|---|---|---|
| Delhivery | ₹33-38 | ₹47-55 | ₹67-80 | General |
| Xpressbees | ₹30-35 | ₹44-52 | ₹62-75 | Affordable |
| Ecom Express | ₹35-40 | ₹50-58 | ₹70-85 | COD |
| DTDC | ₹40-48 | ₹55-65 | ₹75-95 | Speed |
| BlueDart | ₹50-60 | ₹65-80 | ₹90-110 | Premium |
₹30-40
500g shipment
Radius: Within same state
Delivery: 2-3 days
RTO Rate: 15-20%
₹45-60
500g shipment
Radius: Neighboring states
Delivery: 3-5 days
RTO Rate: 25-30%
₹65-90
500g shipment
Radius: Rest of India
Delivery: 5-7 days
RTO Rate: 30-40%
25-40%
COD RTO — the silent margin killer
Every RTO order costs ₹80-120 in wasted shipping + packaging
| Factor | COD | Prepaid | Action |
|---|---|---|---|
| RTO Rate | 25-40% | 2-5% | Prepaid Wins |
| Shipping Cost | ₹10-15 extra | Standard rate | Prepaid Wins |
| Cash Flow | Delayed (7-14 days) | Immediate | Prepaid Wins |
| Conversion Rate | Higher (60-70% of orders) | Lower (30-40% of orders) | COD Advantage |
| Customer Trust | High (pay on delivery) | Requires brand trust | COD Advantage |
Mailer Box: ₹15-25 per unit (custom printed)
Poly Mailer Bag: ₹3-8 per unit (for lightweight items)
Bubble Wrap: ₹2-5 per unit
Thank You Card: ₹4-10 per unit
Tissue Paper: ₹2-5 per unit
Total: ₹20-45 per order
Great unboxing drives organic growth
UGC Content: Beautiful packaging = Instagram photos
Repeat Purchase: Premium unboxing increases reorder rate by 15-20%
Word of Mouth: 40% of customers share packaging they love
Review Rate: Thank-you cards with review links increase reviews by 30%
| Stage | Units | Reorder Point | Lead Time |
|---|---|---|---|
| Launch | 30-50 units | N/A — first batch | 7-14 days |
| Month 1 | 50-100 units | At 50% stock | 7-14 days |
| Month 2 | 100-200 units | At 40% stock | 7-14 days |
| Month 3+ | 200-500 units | At 30% stock | Pre-order forecast |
Sources: Shiprocket D2C Shipping Report 2024, Delhivery Bluebook, Indian D2C Supply Chain Benchmarks
Ready to move forward? Continue to Phase 6.
Phase 6: Store Setup →