Do not calculate margin only from product cost and selling price. Add payment gateway fees, shipping costs, COD handling charges, return processing, ad spend, discounts and customer support expenses to get the real number. Many dropshippers think they earn 40% margin and discover they are losing money on every
COD order that returns.
A product with high demand can still lose money if RTO rates stay high in your target market. Start with products that offer enough margin to absorb marketing costs, operating expenses and the COD risk that comes with selling in India. Aim for at least 30% gross margin on every SKU to protect against the operational realities of Indian ecommerce.