You sold ₹1,000. How much did you actually keep?

The order notification says ₹1,000. It feels like money earned. Then the product, box, courier and payment fee each take a share. By the time the ad bill arrives, that cheerful number tells you very little about what is left.

To estimate the money left from an ecommerce order, start with revenue after discounts and refunds, then subtract the costs that belong to that order. The result is often called contribution: money available to cover fixed bills and profit. It is not the same as final net profit.

Keep revenue, cash received and profit separate

A bank deposit is not the full story

A payment settlement may include several orders and deduct fees or adjustments. A COD order may be delivered before its cash reaches your account. Match each settlement to its orders and charges. Do not assume the bank deposit is the sales total or the profit.

Compare costs on the same tax basis

The example below leaves tax out to make the arithmetic clear. In your own books, use consistent treatment of tax collected and recoverable tax, with help from your accountant. Mixing a tax-inclusive sale with tax-exclusive costs can make the apparent margin misleading.

Shopify's explanation of profit margins distinguishes gross, operating and net profit. Use those names carefully; the order worksheet here is a narrower management exercise.

Follow the ₹1,000 through a worked example

All figures in this table are hypothetical. They show the method, not a typical industry margin or a Kyloth fee schedule.

The example leaves ₹250, or 25% of revenue, before rent, fixed salaries, subscriptions, other overheads and taxes not included here. It does not prove the business has a 25% net profit margin. The remaining bills still need paying.

Include the awkward costs as well

Give advertising a clear boundary

If you spend ₹3,000 on a campaign and attribute 20 orders to it, the simple allocation is ₹150 per order. That is a reporting choice, not proof the campaign caused every order. Record the attribution method and time period so the next comparison uses the same rules.

Avoid counting returns twice

An expected-cost allowance helps plan before all outcomes are known. Once the actual return cost is recorded, replace the estimate for that order rather than adding both. Separate refunded revenue, lost freight and stock that can be sold again. The COD RTO guide explains why an undelivered parcel is not automatically a total product loss.

Provider prices and shipping charges vary. Read the current invoices and contracts rather than borrowing the numbers from this example. Shopify's shipping guidance is useful for understanding who absorbs delivery cost, but it does not supply your actual rate.

Compare a discount with a better offer

Work out what the discount removes

If the example order gets another ₹100 discount and all costs stay the same, contribution falls from ₹250 to ₹150. Revenue falls by 10%, but the money left falls by 40%. That is arithmetic for this example, not a prediction of how buyers will respond.

Test value without assuming it is free

A bundle might spread delivery cost across two items. Better product information might answer a question without changing the price. A gift adds its own product and packing cost. Use the same worksheet for each idea, then observe whether buyers want it. The product-description guide is one place to improve clarity before cutting price.

Build a small weekly review

Choose a finished batch of orders and record revenue, product cost, fees, packaging, delivery, ads and returns. Mark estimated lines so nobody mistakes them for final invoices. Compare the result by product or channel when the sample is large enough to be meaningful.

Pick one leak you can act on: a costly parcel size, a discount used too broadly, or a product that is often sent back. Check the shipping-cost guide for the delivery part. A workbook is useful only when it changes the next decision.