How to Calculate Profit for Meesho Suppliers: A Step-by-Step Guide

Meesho Supplier Profit Calculation

To calculate Meesho supplier’s profit one must consider the following steps:-

• Revenue Calculation – One must begin the calculation by total revenue generated by the supplier on Meesho for a specific month. This also includes the total sales made during that period. 
• Cost of Goods Sold – Make sure to determine the cost of goods sold by the supplier during the same month. This must include all expenses directly associated with producing or acquiring the products sold on Meesho. 
• Operating Expenses – For profit calculation, operating expenses incurred by the supplier is very important. 
• Profit calculation – Substract the total cost of goods sold and the operating expenses from the revenue generated to get your net profit or loss for that particular month. 
• Analysis – At the final stage analyze the calculated profit/loss figure to access the financial performance of the supplier on Meesho. It will help your business for better optimization and improvement. 

Challenges In Monthly Profit/Loss Calculation on Meesho For Suppliers 

Calculating monthly profit or loss on Meesho for suppliers can come with various challenges for suppliers due to dynamic nature of e-commerce sales and other factors involved in the business. Some of the key challenges are the following:-

• Transaction Fees and Charges – Suppliers always need to consider transaction fees, other fees, and any other deductions imposed by Meesho when calculating their profit or loss. These small fees can vary on the type of transactions and services utlized, impacting the overall profitability. 
• Variable Costs – This includes packaging, shipping, and other operational expenses, which can be very challenging for suppliers. Any fluctuations in these costs can directly impact profit margins and it surely requires careful monitoring and adjustment. 
• Inventory Management – Effective inventory management is very important for Meesho suppliers. Suppliers need to track the stock levels, monitor product demand, and avoid any overstocking so that extra spending is not done. 
• Competitive Pricing – Setting competitive prices while ensuring profitability is a balancing act for suppliers on Meesho. Pricing strategies used by suppliers must be upon trends, competitor pricing, and customer preferences. 
• Return dates and refunds – Dealing with returns, refunds, and customer complaints can somehow affect the profit margin of Meesho. Suppliers need to factor in potential losses from returns when assessing their monthly financial performance. 

How to Calculate Suppliers Monthly Profit Loss on Meesho?

You are required to download order data and payment data from your Meesho supplier platform. Take all the necessary information regarding your order and payments on Google Sheets or Microsoft Sheets as per your choice. Such as order no, SKU, quantity, sub-order number, live order status, final settlement, and others. 

Now, take out all the payments that are completed or are still pending for all orders of a month. After all the payments are taken out make sure to take out the total of all payments received.

Then you are required to check the order status if they are delivered, not delivered, or cancelled along with the cost pricing of each product. 

At the end, take out the total payment received, cost price, actual cost price received, packaging cost (subtract), and ads cost (subtract), Take out the miscellaneous cost by adding cost and operation.

Now, from total payment, subtract the actual cost, subtract packaging cost, subtract ad cost as well. After doing this you will get your final profit and loss details.

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