How to Price Sarees Online: Margins, Shipping and Returns (With Examples)

Most saree sellers price the way their wholesaler suggests: double the cost and round up. That works in a shop, where the customer walks out with the saree. Online, every order also has to pay for a courier, a box, a payment fee and the occasional return. This article shows how to build a price that covers all of it. For sourcing, photography and the festive calendar, read the full guide to selling sarees online.

Step 1: list every per-order cost
For a typical packed saree in the 500 g–1 kg slab: courier ₹60–₹110 depending on distance, packaging ₹20–₹40 (more for a rigid silk box), payment gateway around 2% of the price, and a returns buffer. If roughly 1 in 10 orders comes back, spread the two-way shipping on that one order across the other nine.

Step 2: price from a target margin, not a multiplier
Add product cost and per-order costs, then divide by (1 − your target net margin). A ₹650 georgette saree with ₹210 of per-order costs is ₹860 all-in. For a 40% net margin: ₹860 ÷ 0.60 ≈ ₹1,433, so ₹1,449 or ₹1,499 is a sound price. Compare that with the "double it" price of ₹1,299, which leaves you about 34%.

Step 3: treat silk differently
High-value sarees carry a bigger risk per order. A refused COD parcel on a ₹6,000 Banarasi costs two-way shipping and ties up stock for weeks. Many sellers take a UPI advance to confirm silk orders, or offer free shipping only on prepaid orders, and use a lower price multiple, because buyers of silk sarees compare prices carefully.

Step 4: keep GST out of your margin
Sarees are generally taxed at 5% GST as woven fabric (confirm the HSN code with your supplier invoice or CA). If you’re registered, the GST you collect isn’t your revenue, so calculate margin on the pre-GST price. A GST calculator makes it easy to separate the tax from a GST-inclusive price.

Step 5: check the result
Put your numbers into the profit margin calculator. If a saree only works at a price your buyers won’t pay, change the product (a different fabric or supplier), not just the margin. Selling at a loss doesn’t become profitable at higher volume.