Festive Sales in D2C: Why ₹1.3 Cr Can Still Leave You With Just 13% Net

Festive season in India is the biggest event for e-commerce. Amazon, Flipkart, and Myntra push massive discounts, D2C websites ramp up campaigns, and every founder dreams of record-breaking sales.

But here is the hard truth: big screenshots do not always mean big profits. Last festive season, one of our brands touched ₹1.3 Cr in gross sales across marketplaces and D2C. After returns, commissions, logistics, and ad spend, what was left in the bank was just 13% net.

This is the side of festive sales that does not get posted on LinkedIn, but it is the reality that every D2C founder and e-commerce manager must plan for.

The Festive Sales Trap

Festive season creates a rush of demand. Customers shop more, try more, and return more. Marketplaces squeeze margins with commissions and penalties. Ad costs shoot up as every brand fights for visibility.

What looks like a blockbuster month on the surface can quickly become a margin dead zone.

The Breakdown: ₹1.3 Cr vs 13% Net

Here’s what actually happened with our festive sale numbers:

• 35% Returns - In fashion, festive returns are brutal. Customers order multiple sizes or styles, keep one, and return the rest.

• 32% Commissions and Logistics - Marketplaces charge standard commissions, but during festive surge, logistics costs add up fast. Reverse logistics makes it worse.

• 20% Ad Spend - CPCs rise sharply in festive weeks. Even efficient campaigns struggle to maintain profitable ROAS.

After all this, the ₹1.3 Cr top line shrank to just 13% net margin.

Top 5 Reasons Festive Sales Kill Profitability

1. High Return Rates Returns can hit 30–40% in fashion and beauty during festive season. Every return means double logistics and blocked inventory.

2. Marketplace Commissions Standard commission slabs look small on paper, but when combined with fixed fees and penalties, they eat into margins heavily.

3. Logistics Costs Forward and reverse shipping costs rise with festive demand. Brands pay both ways on returns.

4. Rising Ad Costs Festive CPCs increase by 20–30% as competition peaks. Even a strong campaign sees lower ROAS.

5. Dead Stock After Returns Returned items often come back in unsellable condition or as cut sizes, creating losses beyond logistics.

Where Can D2C Brands Optimise?

This is the big question every founder faces. If 87% of sales value is wiped out by returns, commissions, ads, and logistics, where should optimisation begin?

Should brands focus on reducing return rates with better PDPs and sizing guides? Should they renegotiate marketplace fees or push more traffic to D2C websites? Should they plan liquidation strategies for post-festive cut sizes?

There is no single answer. What is clear is that festive season is not just about scaling gross sales. It is about protecting profitability and ensuring that after the excitement fades, there is money left in the bank.

Key Takeaway

Festive sales in India can show you big numbers but leave you with razor-thin margins. For D2C brands, the focus must shift from celebrating screenshots to asking the harder question: how much of it is actually profit?

About Faihai

Faihai is an eCommerce & growth agency built by ex-brand folks, focused on profitability from day one. We work with startups and SMEs in the 0–1 and 1–10 journey, helping them scale across marketplaces like Amazon, Flipkart, Myntra, and Ajio, grow on quick commerce platforms like Blinkit, Zepto, Instamart, and BigBasket, build high-converting D2C websites with performance marketing, and drive brand reach through content creation and social media growth.

Visit to know more www.faihai.in