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Selling online in India: what the imported playbook gets wrong

Playbooks built for Western markets often fail when applied directly to India. The local realities that change the arithmetic, and what to rebuild first.

14 October 2026
2 min read

Playbooks for selling online, built for Western markets, often fail when applied directly to India. The economics that work where order values are high, returns are low and card payment is universal do not survive contact with the Indian operating environment. The businesses that succeed there tend to rebuild the model from local facts rather than translating one that worked elsewhere.

The first thing that changes is the size of an order. Customers in India, and particularly outside the largest cities, buy at lower values than their Western equivalents. The cost of picking, packing and delivering is therefore a much larger share of each order, the cost of winning a customer has to be smaller, and the product mix has to favour items whose margin survives both.

The second is returns. Rates are structurally higher than in mature Western markets, for reasons that stack on each other. Paying on delivery makes refusing an order easy. Sizing varies between brands. Expectations are shaped by shopping in person, where trying something on is normal. In clothing, a business should plan for a return rate that would alarm a European finance director, and build the pricing around it rather than treating it as a problem to be solved later.

The third is how people pay. Digital payment has grown enormously, and paying on delivery remains a meaningful share in many categories and places. Those orders cost more to fulfil, are returned more often and take longer to convert into cash. Capacity planning, stock financing and the channel mix all have to account for that rather than assuming it will fade.

The fourth is how people find things. Discovery happens disproportionately through social and messaging platforms rather than through search, so the businesses that do well usually invest in content and community before they invest heavily in performance advertising. Reversing that order produces expensive traffic that arrives with no idea who you are.

The practical implication is to rebuild three numbers before anything else. What an average order is really worth after delivery and returns. What you can afford to spend to win a customer at that value. And how many of those customers come back. Everything else, including the channel mix and the range, follows from those.

Our own connection to India is through the textile trade rather than through retail, and our label sells in this region rather than there. Where a client needs someone who has run Indian fulfilment at scale, we say so and work alongside people who have. What we can contribute is the discipline of building the model on local numbers, which is where most of these mistakes are made.

One last caution about timing. Everything practical, including registrations, payment arrangements and a courier relationship that actually works, takes longer to settle than a launch plan assumes. Advertising placed before those are in order simply teaches people to try ordering from a business that cannot yet deliver reliably.

The Kaelo Editorial Desk

Notes from Kaelo Global are written by the Editorial Desk and reviewed by the principals of the relevant activity. We publish under the company name instead of individual bylines, in the same way that we keep our clients' names private.

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