What an e-commerce agency actually costs in India

We're an agency writing about agency pricing, so let's set the rules: no numbers we can't defend, and the questions we suggest you ask apply to us too. If any agency — including us — squirms at these questions, that's your answer.

The common pricing models

• Monthly retainer — a fixed fee per month per marketplace or per scope. Predictable, but the incentive is to keep you subscribed, not to move your numbers.
• Percentage of sales — aligns loosely with growth, but you pay more just because you grew, and "sales" includes orders that return.
• Percentage of ad spend — the worst incentive in the industry: the agency earns more when your ads cost more.
• Performance-linked engagements — where responsibilities, success measures and commercial terms are defined after the opportunity and workload have been properly assessed.

What small sellers typically pay

In the Indian market, small-seller retainers commonly run from a few thousand rupees per month for single-marketplace basics to ₹25,000+ for multi-marketplace management with ads. Below that range, ask who is actually doing the work; far above it, ask what specifically you're getting that a smaller fee wouldn't buy. Any agency should be able to answer "what will you do in month one, and how will I verify it?" in writing.

The hidden costs

• Setup fees that appear after the sales call.
• "Ad budget recommendations" that exist to grow the agency's percentage.
• Junior staff running your account while seniors run the pitch.
• Reports designed to look busy — impressions and clicks — while profit goes unmentioned.

Seven questions that expose everything

1. What exactly is included, in writing?
2. Who works on my account day to day, and what's their experience?
3. What happens to my fee if nothing improves in 90 days?
4. Do you report profit, or just activity?
5. Will you show me the raw numbers, not just your dashboard?
6. Do you check my settlements for errors, or only spend my budget?
7. Can I leave with 30 days' notice without penalties?

Our approach is to understand the account before recommending an engagement. We first identify the main business constraint, determine the work required and then provide a written scope explaining the priorities, deliverables, responsibilities, timelines, reporting process and commercial terms. Hold us to the seven questions; hold everyone to them.