Nykaa seller margin is what remains after commission, other marketplace charges, taxes on fees, returns costs, marketing and product cost are deducted from the selling price. Your commission and fee rates depend on your agreement and category, so confirm them in your seller contract or rate card, then compare them with what the settlement report actually deducts.
What "commission" means in a marketplace agreement
Sellers often say "commission" for everything the marketplace keeps. In practice, the commission is only one line in a larger fee stack. Depending on your commercial arrangement, it may be a percentage of the selling price, or it may be built into a margin-based arrangement. Rates can differ by brand, category and negotiated terms.
We are not quoting Nykaa rates here because they change and vary by agreement. Treat your signed agreement, rate card and any later addenda or email confirmations as the source of truth, and confirm the latest terms with your Nykaa account contact.
The fee stack to look for
Whatever your model, list every deduction type that can apply to an order. Use this as a checklist against your agreement and your settlement report.
| Component | What to check |
|---|---|
| Commission | Rate, and the base it is applied to (price before or after discount) |
| Fixed or collection charges | Whether they apply per order, per item or by price slab |
| Shipping or logistics | Weight or slab rules, and who bears the cost |
| Returns and reverse charges | Whether commission is reversed on returns, and what stays charged |
| Marketing or visibility | Ad spend, promotional contributions, co-funded discounts |
| Taxes on fees | GST on fees, TCS and TDS as applicable; confirm with your tax adviser |
From selling price to margin
A usable margin calculation works per order, then per SKU, then per month. The basic flow is:
- Start with the customer selling price after any discount you fund.
- Subtract commission and other marketplace charges.
- Account for taxes on fees and any TCS or TDS, noting which are adjustable and which are real costs.
- Subtract product cost, packaging and inbound logistics.
- Adjust for returns, damages and unrecovered shipments.
- Subtract marketing spend attributed to the order.
Most margin surprises come from steps 3, 5 and 6. Sellers usually track commission closely but average out returns and marketing, which hides loss-making SKUs.
Where to find the terms and the actuals
- Seller agreement and rate card: the agreed commission, fee slabs, payment cycle and return terms.
- Settlement or payout report: what was actually deducted, order by order.
- Sales and returns reports: to match orders to settlements and returns.
- GST and TCS/TDS statements: for the tax lines; your tax adviser should confirm treatment.
Put the agreed terms in a simple sheet: fee name, rate or slab, applicable base, effective date. Without effective dates you cannot tell whether a deduction was right when a rate changes mid-year.
Common places where margin leaks
- Wrong base for commission: charged on a higher value than agreed, for example before a discount you were promised would be excluded.
- Fees not reversed on returns: if your terms say they should be.
- Slab mismatches: weight or price slabs applied incorrectly.
- Returned items not received back: or received damaged, with no claim raised.
- Delayed or short settlements: payouts that do not match the order totals.
- Old rates still applied: after a renegotiation.
Each of these is small per order and large over a year, which is why a sample check is not enough.
A monthly routine that keeps margin honest
Reconcile every month, not once a year. Match sales to settlements, recompute expected fees from your agreed terms, and list differences by reason. Then track returns and open recovery cases until money or credit is received.
Doing this in spreadsheets works at low volume. As order counts grow, tools help. MarketplaceMetrics by Fundle reconciles marketplace sales and settlements, checks commissions and fees against agreed terms, and tracks returns and recovery cases. Myntra Excel reports are currently reviewed; Nykaa coverage would be a scope discussion, so ask for the current position.
Worked example
Illustrative example only. The rates and amounts below are assumptions to show the method. They are not Nykaa's actual rates.
| Line (per order, illustrative) | Amount |
|---|---|
| Selling price | ₹1,000 |
| Commission (assumed 15%) | -₹150 |
| Fixed and shipping charges (assumed) | -₹80 |
| Taxes on fees (assumed lump sum) | -₹40 |
| Expected payout | ₹730 |
| Product cost | -₹400 |
| Margin before returns and marketing | ₹330 (33.0%) |
| Average returns cost (assumed) | -₹12 |
| Marketing per order (assumed) | -₹50 |
| Net margin | ₹268 (26.8%) |
The headline 33% shrinks to 26.8% once returns and marketing are included. If the settlement shows a payout below ₹730 for an order like this, the difference is what you investigate against your agreed terms.
Questions and answers
What is the Nykaa commission rate for sellers?
There is no single rate to rely on. Commission depends on your category, brand and negotiated agreement, and it can change. Check your signed seller agreement, rate card and latest addenda, and confirm current terms with your Nykaa account manager before using any number in planning.
How do I calculate my actual margin on Nykaa?
Start from the selling price, subtract commission, other charges and taxes on fees, then product cost. Next adjust for returns and marketing spend. Do it per SKU using actual settlement data, because averages hide products that lose money after returns.
Where can I see what Nykaa deducted from my payout?
Use the settlement or payout report in your seller panel or the one shared by your account team. It should show order-level deductions. Match it to your sales and returns reports and compare each fee with your agreed terms.
How often should I audit marketplace fees?
Monthly is a sensible routine, as it keeps differences small enough to raise with the marketplace while records are fresh. Also audit after any rate change, renegotiation or new category launch, since those are when wrong rates are most likely to appear.