How is e-commerce net profit calculated?

Net Profit is calculated by subtracting product cost of goods (COGS), packaging, marketing ad spend (CAC), and courier return losses from your total delivered gross revenue.

What is Pay-on-Delivery (POD) return rate risk?

In African e-commerce, POD return rates typically range between 15% and 35%. When a customer rejects an order, you still pay two-way logistics and ad acquisition fees, directly eroding your profits.

Stop Delivery Cash Leaks

E-Commerce Profit & POD Risk Calculator

Selling with Pay-on-Delivery across Nigeria? Factor in failed deliveries, courier return fees, and ad spend to reveal your true bottom-line profit.

Pricing & Cost Variables

Currency:

Selling Price *

Retail price charged to customer

Product Cost / COGS *

Wholesale cost per item

Ad Spend per Order / CPA

Meta / TikTok ad cost to get 1 order

Packaging & Box

Bags, tape, branded inserts

Outbound Courier Fee *

Fee to ship parcel to customer

Return (RTO) Fee

Charged if customer rejects parcel

Monthly Order Volume 100 Orders

Pay-on-Delivery Rejection / Return Rate (%) 25% Rejection Rate

True Net Profit Telemetry

Healthy Margin

Net Profit Per Delivered Item

True Net Margin

Total Monthly Net Profit

Money Lost to Failed Deliveries

Monthly Cost & Delivery Breakdown

Delivered Orders: 75 orders

Returned / Ghosted Orders: 25 orders

Gross Cash Collected: 0

Total Product Cost (COGS): 0

Total Advertising Spend: 0

Break-Even Ad CPA (Maximum allowable): 0

💡 Your numbers look healthy! By using WaSellio's POD Commitment Fee, you could recover the lost courier money and boost your monthly profit even further.

Frequently Asked Questions

What is a healthy profit margin for social commerce in Nigeria?

In social commerce and WhatsApp sales, target a gross markup of at least 2.5x to 3x your wholesale cost (COGS). After accounting for advertising CPA, packaging, and dispatch fees, your net profit margin should ideally sit between 25% and 40%.

How does Pay-on-Delivery (POD) secretly destroy profits?

When a buyer rejects a parcel or switches off their phone upon delivery, you lose both the outbound courier fee, the return (RTO) fee, and the ad spend spent acquiring that lead. At a 25% rejection rate, 1 out of every 4 parcels eats up the profits made from the successful 3.

How can I stop customers from ghosting couriers?

Use WaSellio's automated order system with a Delivery Commitment Fee. By asking buyers to pay just the delivery fee upfront while paying for the item upon arrival, delivery completion rates skyrocket from 65% to over 95%.