The Meesho Reality: 0% Commission vs High RTOs
Meesho has revolutionized Indian e-commerce by charging **0% commission / referral fees** and **0% fixed fees**. That means you keep 100% of the sale value (minus product GST).
However, Meesho caters to a massive Tier-2/Tier-3 customer base that relies heavily on Cash on Delivery (COD). Because of this, return rates on Meesho are famously high:
- Customer Returns / RTOs: Usually range from 15% to 35% of all orders.
- RTO Logistics Fees: When a package is returned, the seller bears return shipping fees (typically ₹110 to ₹140 per parcel).
- Inventory Damages: Roughly 5% to 15% of returned packages come back damaged or with contents stolen/lost, meaning the product cost is written off.
Our model maps these exact risks to show your weighted average profitability per order, helping you price products to survive return losses.