Baby & kids D2C
See the ROAS after the doorstep, not the one Meta booked.
Meta counts every booked baby order as a sale and fires 4× ROAS — then 30-35% of it RTOs, hygiene SKUs write off in full, and your 5-15% margin turns to a loss. Margifi recomputes delivered ROAS on courier-confirmed revenue, SKU by SKU.
- 4× on the ad manager, ~2.6× after a 32% RTO lands.
- Diapers, wipes and feeding gear come back as full write-offs — not a ₹200 freight line.
- ~55% COD, and no way to see who refuses at the door.
Connect Shopify + Meta + your courier. No pixel, no code.
Typical Indian baby & kids benchmarks — your real numbers will differ.
The delivered-ROAS gap
The 4× you scale on isn't the ROAS you bank
Meta's purchase event fires on the thank-you page and never learns the COD order was refused at the doorstep three days later. On a 30-35% RTO rate against a 5-15% margin shelf, the booked ROAS and the delivered ROAS are two different numbers — and only one of them pays your bills.
Profit truth
Profit truth
A 4× ROAS on a 10%-margin shelf still nets a loss
Meta fires its purchase event on the thank-you page, so it counts the booked COD order and never learns it was refused three days later. Baby care runs a healthy-looking 4× while bleeding 30-35% RTO on a 5-15% margin shelf — so a 3-4× ROAS routinely lands at POAS below 1.0 once COGS, freight and returns stack up. The campaign you're proud of is the one draining cash.
- Delivered ROAS recomputed on courier-confirmed revenue — per campaign, not booked orders.
- Profit waterfall: revenue → after COGS → after shipping & returns → after ad spend → net.
- Blended ROAS pulled apart — see the ~60% of SKUs that are unprofitable to advertise.
Returns & RTO
Returns & RTO
Kidswear comes back at 25-40% — and hygiene SKUs come back worthless
There's no standard India kids size chart and babies outgrow a size in 2-3 months, so parents guess and return — apparel is India's most-returned category at 25-40%, with fit driving ~53% of it. Worse, a returned diaper, wipe or feeding item legally can't be restocked, and toys arrive broken: you eat full COGS plus both-way freight, not a ₹200 shipping line. Then festive gifting nearly doubles RTO to ~39% right when you scale hardest.
- NDR & Out-for-Delivery calling worklist — ranked by rescue value & pincode risk; call the save-able orders inside the 24-72h window before they RTO. Live
- Return-loss charged back to the exact size & SKU — reverse freight plus full-COGS hygiene write-off, not a lumped returns line.
- In-transit projection + delivered-ROAS trend so festive scaling runs on delivered revenue, not booked.
COD reliability
COD reliability
New mothers pay COD — and COD RTOs at ~26% vs under 2% prepaid
Baby care skews to cautious first-time mothers in Tier 2-3 cities who default to COD so they can inspect a safety-sensitive product before paying. But COD carries no doorstep commitment: it RTOs at ~26% versus under 2% prepaid, costs 50-100% more to fulfil, and runs net contribution 8-15 points lower. A brand at ~55% COD loses 5-8% of revenue to COD costs alone — with no way to see which repeat phone numbers are serial refusers.
- COD reliability score per phone number (RTO Shield) — flag serial refusers before you ship.
- COD → prepaid conversion upside — a prepaid nudge converts 20-30% of COD intenders.
- COD-vs-prepaid delivered-margin split so you can price the COD tax honestly.
Products & catalogue
Products & catalogue
A wide baby catalogue hides which products actually pay
Onesies, bottles, toys, diapers, bundles — wildly different margins and return rates, all collapsed into one blended ROAS that feels trustworthy. Operators find ~60% of SKUs are unprofitable to advertise while 40% subsidise them, and your DPA feed happily spreads spend across every one — including the high-RTO, negative-margin ones. Without product-level delivered profit you can't prune the feed.
- Catalogue / DPA product-level profit — spend, delivered ROAS, RTO and delivered profit per product_id; cut loss-makers from the feed. Live
- Per-SKU delivered-profit ranking with Scale / Keep / Stop verdicts.
- Dead-stock value & days-of-cover so you stop funding what won't move.
My ad manager said 4× so I doubled festive spend. Three weeks later a third of it had bounced back as RTO, and the diaper packs came back unsellable. On paper I scaled a winner — in the bank I'd funded my worst-delivering cohort.
Baby & kids founder — illustrative
Illustrative — a category benchmark, not a single brand's numbers.
Questions
Margifi for baby & kids — FAQ
For hygiene-sensitive SKUs — diapers, wipes, bottles, feeding gear — a refused unit can't legally be resold, so Margifi charges the full COGS plus both-way freight as return-loss against the exact ad and SKU that sold it, not a flat shipping estimate. Damaged toys and hard-goods are treated the same way. You see the real profit hole, traced to the SKUs and lanes that keep breaking.
See your real delivered profit, baby & kids.
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