There is no good MER. There is your break-even.
Anyone quoting one universal number is selling something. Your break-even MER depends on your margin, your COD share, and your returns. Enter your numbers and see yours.
Your numbers
Revenue minus product cost and shipping, before marketing. If unsure, use your rough contribution margin per order.
What share of your orders are cash on delivery.
Of COD orders, how many never complete.
Of delivered, paid orders, how many come back.
The reported MER you aim for today. We will tell you if it clears your real break-even.
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Why your break-even is higher than the formula says
The classic answer is simple: break-even MER is one divided by your gross margin. A 40% margin means a break-even MER of 2.5x. But that assumes every reported sale is a sale you kept.
In Indian D2C, it is not. COD failures and returns shrink the revenue you actually retain, so to break even on retained revenue you have to clear a higher reported MER. The wider your gap, the higher the bar. That is why two brands with identical margins can have very different real break-even points, decided entirely by their COD and return profile.
What is a good MER for Indian D2C?
There is no universal good MER, and anyone quoting one is compressing away what matters. The honest benchmark is your own break-even, which depends on your margin, COD share, and return rate. This tool computes yours.
How is break-even MER calculated?
Break-even on retained revenue is one divided by your gross margin. Because COD failures and returns shrink what you keep, your break-even reported MER is that number divided by the share of revenue you retain after those failures.