Shipping Calculator India & Inventory Calculator: Fulfilment Cost & Stock Math

• Shipping cost in India: courier rates range from ₹40–₹80 for 500g within zone, ₹80–₹150 across zones. Volumetric weight often applies — a large light package is charged on volume, not actual weight.
• Free shipping above a threshold (typically ₹499–₹999) is the single highest-impact conversion rate lever in Indian e-commerce — but you must model whether the economics work.
• Inventory carrying cost = 20–30% of inventory value annually (storage, spoilage, financing cost, obsolescence). Most businesses undercount this, leading to over-stocking decisions.
• Reorder point = (Daily sales × Lead time) + Safety stock. Running out of stock costs more than the profit from the sale — it damages ranking on marketplaces and restarts your sales velocity.

Use our free Shipping Calculator to estimate fulfilment cost for any weight, zone, and courier — and our Inventory Calculator to find reorder points, EOQ, and carrying costs.

Shipping Calculator India

Major Courier Rate Comparison (2025, Approximate)

Within-city / Zone A (same state):

Cross-zone (metros to Tier-2/3 cities): Add 30–50% to above rates for Zone B (same region), 60–100% for Zone C/D (different region).

Volumetric Weight: When It Matters

Couriers charge whichever is higher: actual weight or volumetric weight.

Volumetric Weight = (Length × Width × Height in cm) ÷ 5,000

Example: A lightweight product (LED strip lights): 500g actual weight Box dimensions: 40cm × 20cm × 10cm Volumetric weight = (40 × 20 × 10) ÷ 5,000 = 1.6 kg

Charged at 1.6 kg despite weighing only 500g. Many new sellers are shocked by this.

Products where volumetric weight kills margins:

• Large cushions and pillows
• LED lighting
• Toys and games
• Kitchen appliances (bulky packaging)
• Sports equipment

Solution: Optimise packaging dimensions. Often you can reduce box size by 20–30% with proper packaging — directly reducing shipping cost.

Free Shipping Threshold Analysis

Should you offer free shipping? Model it first:

Example — Fashion store, average order ₹750

Math for free above ₹999: Customers add ₹200 more to qualify → extra revenue × gross margin (40%) = ₹80 extra gross profit Free shipping cost: ₹80 Net: ₹0 impact — and higher conversion rate as bonus

If AOV lift is ₹150 (from ₹750 to ₹900): extra margin = ₹60, shipping cost = ₹80 → net −₹20/order. Not worth it at this level. Set threshold higher.

Inventory Calculator

Economic Order Quantity (EOQ)

EOQ = √(2 × Annual Demand × Ordering Cost ÷ Carrying Cost per Unit)

What it gives you: The optimal number of units to order at once — balancing ordering cost (fixed per shipment) against carrying cost (per unit held).

Example: Annual demand: 2,400 units Ordering cost (shipping + admin per order): ₹3,500 Carrying cost per unit per year: ₹120 (20% of ₹600 product cost)

EOQ = √(2 × 2,400 × ₹3,500 ÷ ₹120) = √(1,40,00,000 ÷ 120) = √(1,16,667) = 341 units

Order 341 units at a time (roughly every 52 days for this demand rate).

Reorder Point (ROP)

Reorder Point = (Average Daily Sales × Lead Time in days) + Safety Stock

Safety Stock = Z × Standard Deviation of Daily Sales × √Lead Time (Z = 1.65 for 95% service level)

Simplified version: ROP = Average Daily Sales × (Lead Time + Safety Days)

Example: Product sells 15 units/day (average) Supplier lead time: 7 days Safety stock: 3 days supply (45 units)

ROP = 15 × 7 + 45 = 105 + 45 = 150 units

When inventory hits 150 units — place the next order. This ensures you never stock out.

Inventory Carrying Cost

Carrying cost is typically 20–30% of inventory value annually:

Example: ₹10 lakh inventory held on average throughout the year Carrying cost at 25%: ₹2,50,000/year just to hold it

This is why over-ordering is costly — that ₹10 lakh in unsold inventory costs ₹2.5L/year before you've sold a single unit.

Inventory Turnover Ratio

Inventory Turnover = Annual COGS ÷ Average Inventory Value

Low turnover = cash trapped in inventory. High turnover = lean operations, more cash available.