For fashion & apparel D2C

Your 8× drop is a booked number. A third of it comes back.

A strong catalogue genuinely posts 6×–20× order ROAS on Meta — but apparel is India's highest-RTO category, so that's the booked order, not the piece that got delivered and kept. Our live pilot, an apparel-family brand, booked 5.6× and delivered 1.56×. Margifi recomputes every drop on courier-confirmed delivered revenue before you reorder into it.

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  • Delivered ROAS per campaign and per drop — courier-confirmed, after every RTO
  • Fit and bracketing returns charged back to the exact style and ad that sold them
  • COD risk scored by region and pincode before the parcel ships
Order → Delivered ROAS2.4×from ~8× bookedEstimated
COD share65%Estimated
Apparel RTO rate30%25–35% bandEstimated
Returns that are fit & size53%Estimated

Benchmark ranges for Indian fashion & apparel — your numbers will differ, and Margifi computes them from your own courier data. Category benchmarks — not Margifi results.

Profit truth

The 8× launch winner was under break-even

Meta counts the booked order and never nets out the quarter-to-third that comes back, the reverse freight, the COD fees or the write-offs — so you scale a 9× “winner” that's under break-even and reorder fabric into it. And because those costs land weeks later across five statements, you can't answer “did the drop make money?” without a manual reconciliation. Margifi recomputes every campaign on courier-confirmed delivered revenue, the day it happens.

  • Delivered ROAS per campaign and drop, against your true break-even marker
  • Profit waterfall: revenue → after COGS → after shipping + returns → after ad spend → net
  • Delivered CAC — your real cost per kept customer when a slice of first orders never arrive

Returns & RTO

Order three sizes, keep one — you pay the freight on all three

Fit and size drive ~53% of apparel returns, and bracketing — order three, keep one — is normal shopper behaviour now. The piece often comes back worn, creased or tag-pulled: a write-off on top of the forward freight you already paid, and Shopify's gross revenue never shows which style it was. Margifi flags the shaky in-flight COD orders while a call can still save them, then charges every return's full cost back to the exact style and ad.

  • NDR + Out-for-Delivery calling worklist — which COD orders to call inside the 24–72h rescue window Live
  • Return loss — reverse freight + forward freight + the restock cost you set — charged to the exact style and ad
  • Per-style delivered margin after returns, with Scale / Keep / Stop verdicts

COD reliability

Two-thirds of the drop sells on COD — the mode that refuses at the door

Indian fashion runs ~65% COD, and COD RTOs at roughly 26% against under 2% for prepaid — the buyer commits at zero risk and refuses for free. Yet the dashboard, the ad platform and the cash-flow plan all book every COD order as revenue. Margifi reads your own courier-confirmed RTO by region and pincode before you ship and quantifies what converting the riskiest lanes to prepaid would recover — without blanket-blocking the Tier-2/3 buyers who actually convert.

  • COD RTO rate by region and pincode — courier-confirmed, before the order ships
  • COD → prepaid conversion upside, quantified in rupees
  • COD vs prepaid delivered-margin split per campaign and drop

Products & catalogue

Every drop leaves working capital in styles that never get kept

New drops every few weeks means money sits in styles that won't scale — slow sellers, plus pieces that “sell” on Meta and come back at high RTO. Catalogue/DPA ads make it worse: the feed optimizes to order-time purchases and keeps spending on styles with negative delivered margin. Margifi ranks every style on delivered profit and prunes the losers straight out of the feed before the next restock.

  • Catalogue / DPA product-level profit — cut loss-making styles from the feed Live
  • Per-SKU delivered-profit ranking with Scale / Keep / Stop verdicts, plus RTO and prepaid share
  • Dead-stock value and days-of-cover — reinvest into low-RTO, high-prepaid styles

Where fashion & apparel usually lands

Meta order ROAS6×–20×Estimated
Apparel RTO25–35%Estimated
Fit share of returns~53%Estimated
Delivered ROASoften under break-evenEstimated

Benchmark ranges for the category — the only real numbers we publish are from our live pilot.

See the live pilot brand

Margifi for fashion & apparel — FAQ

Because Meta reports the booked order, not the delivered one. In apparel, 25–35% RTO plus reverse freight, COD fees, discounts and write-offs land days-to-weeks after the sale, spread across five courier statements. A brand at 15% returns and 10% discounts is working with net revenue 22–25% below what the dashboard shows. Margifi recomputes ROAS and net margin on courier-confirmed delivered revenue, so the real number shows up the day it happens.

See your real delivered profit, fashion & apparel.

Connect Shopify and Meta and watch order ROAS become delivered ROAS — net of every RTO.

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