Pricing is extremely critical to get more sales for your product. You should consider the following factors while setting your margins. This is where your own understanding of the product and understanding the taste and typical budget of your customers comes into the picture.
Try to think like the customer. How much would you be willing to spend on a similar product? What would be the price of a similar product on Flipkart, Amazon, offline retailers etc. Try to keep your price a bit lower – like Rs.100 less as compared to Amazon.
Also consider how easily that product is available on other online platforms. If a product is very unique and not easily available on other platforms, you can put higher margins on it.