MARKETPLACE LAUNCHES
Start with what the brand actually realises on an order. A marketplace can bring in new customers and still leave too little contribution to pay for stock, returns or launch marketing.
Example · what a launch order contributes
Net realised sales
₹600 per order on a consistent tax basis.
Variable costs
₹220 product and packaging + ₹140 fees and fulfilment + ₹40 expected return cost = ₹400.
Contribution
₹200 before ads. At ₹90 acquisition cost, ₹110 remains. A ₹22,000 one-off launch cost needs 200 such orders to recover.
Build the estimate from the settlement
Ask how the channel settles an order. Start with the selling price and identify which discounts the brand funds. Account for relevant taxes, commission, shipping or fulfilment, product cost and packaging. Avoid deducting a discount twice if it is already reflected in the selling price.
Allow for returns and launch spend
Include what a returned order costs once you factor in reverse shipping, handling and inventory you may be unable to resell. Keep one-off launch costs separate from recurring expenses. Model a regular week as well as a sale week so you can see how much the result depends on the deal.
Set the pilot around a decision
Pick a small assortment with enough stock to complete the test. Decide the minimum contribution you can accept and how much launch spend you can commit. Review realised sales, returns and contribution per order before adding products or buying another placement.
Model cash separately from contribution
Build a simple timeline for inventory purchase, inbound delivery, customer orders, settlement and returns. A profitable order can still tie up cash for weeks. Set an opening-stock limit using the downside sales scenario and the actual replenishment lead time.
Decide what would justify a reorder
For each SKU, track realised price, return-adjusted contribution, sell-through and stock cover. Use a regular week and a deal week as separate scenarios. Set the minimum contribution and a maximum amount you are prepared to lose on the pilot before committing inventory.