Seller ProfitProfit on spices and packaged food: a worked example
How this kind of product earns or loses money online, with example figures you can replace by your own.
How this product sells
Packaged food has strict labelling and shelf-life rules, and customers buy again if they like it, so repeat orders matter more than the first sale. A product that is spoiled or past its date cannot be resold.
What to watch
Food licence and label requirements in your country, shelf life and stock rotation, moisture-proof packing, weight-based shipping bands, and the share of customers who reorder.
A worked example with made-up numbers
The cost, price and every fee below are made up to show the working in Indian rupee; they are not the fees of any marketplace and the GST rate is an example. Replace each with your own.
| Selling price (GST included) | ₹249 |
| Sale value without GST | ₹237.14 |
| Cost of the unit | -₹70 |
| Fees and shipping (example percentages) | -₹113.20 |
| Packaging and advertising | -₹34.00 |
| Profit per delivered unit | ₹19.94 |
| Margin | 8.4% |
| Expected profit per order placed, after 3% returns | ₹16.04 |
What changes the answer
- If returns double to 6%, the expected profit per order placed becomes ₹12.15.
- If the advertising cost per order doubles, the profit per delivered unit becomes -₹0.06.
- If you cut the price by 10 percent, the profit per delivered unit becomes -₹0.45 (margin -0.2%).
A tip for this product
Work out the profit of the first sale and the profit of a repeat sale separately. Many food sellers accept a thin first margin because the reorders carry no advertising cost.
Try your own figures
Common questions
Does this page tell me the food rules?
No. Licence, label and shelf-life rules differ by country and change. Ask the food safety authority of your country before you sell. The calculator only does the money.
Why separate first and repeat orders?
Advertising and discounts are spent to win the first order. A repeat order costs almost nothing to get, so its profit is higher and can pay for the first order.
Keep going
Fee percentages, GST rates and other figures in the examples on this site are made up to show the working. They are not the fees or rates of any marketplace or country: type the numbers from your own seller account and from the tax authority. Checked 14 November 2026.