CAC inflation plus rising return rates plus Amazon's 30% take rate have squeezed Indian D2C contribution to single digits.

Average contribution margin for Indian D2C brands dropped from 25% in 2022 to 12% in 2026. The reasons compound: Meta Ads CAC up 60%, return rates up 40% (driven by COD culture), and Amazon's effective take rate climbing toward 30% with fees. The D2C brands surviving in 2026 share two patterns: aggressive vertical integration (cutting out third-party manufacturing or logistics) and offline expansion (where unit economics are healthier despite higher capex). Pure online D2C in India is a much harder business in 2026 than the 2020-22 narrative suggested.