E Commerce and D2C Marketing
D2C economics include acquisition, fulfilment, returns, support and repeat.
Cheat sheet
D2C economics include acquisition, fulfilment, returns, support and repeat.
What to check first
Use delivered retained revenue and costs on all shipped units.
How to make the call
Test sizing guidance and measure net contribution after the returns window closes.
OpenStax · Retailing and wholesaling · further reading for retail & services
Indian practice case
Fictional scenario
A Jaipur apparel site ships 1,000 orders at ₹900 net price before returns. 200 are fully refunded and cannot be resold. The variable cost is ₹550 per shipment.
Reveal the step-by-step solution
- Diagnose the problem.
Use delivered retained revenue and costs on all shipped units.
- Work through the evidence.
Revenue is ₹7.2 lakh, variable cost ₹5.5 lakh, and contribution before acquisition and fixed costs is ₹1.7 lakh.
- Recommend and validate.
Test sizing guidance and measure net contribution after the returns window closes.
More Indian cases
Interview question
How would you use e commerce and d2c marketing to make the decision in this case? Explain which data you need first and what would change your recommendation.
See what a strong answer includes
Revenue is ₹7.2 lakh, variable cost ₹5.5 lakh, and contribution before acquisition and fixed costs is ₹1.7 lakh. Test sizing guidance and measure net contribution after the returns window closes.