By Abhishek Sharma · Guerilla Marketing & Technology
The path at a glance
- 1
Selling price
What the buyer pays, including GST.
- 2
Minus GST on sale
The output tax you owe on the product.
- 3
Minus Amazon fees
Referral, closing, shipping or FBA, plus GST on fees.
- 4
Minus your costs
Product, packaging, inbound shipping, ads and returns.
- 5
Profit per order
What is actually left for you.
Is there an Amazon seller account charge to register?
Opening a seller account on Amazon India does not carry a sign-up fee. The charges begin when you sell. That is why it is easy to start and easy to lose money if you have not priced with every fee in mind.
The layers of Amazon seller fees
| Fee | What it is | Depends on |
|---|---|---|
| Referral fee | Amazon's selling commission on each order | Category and selling price |
| Closing fee | A fixed fee per item sold | Price band and fulfilment method |
| Shipping or weight handling | Delivery cost for Easy Ship or FBA orders | Weight, size and distance |
| FBA fees | Pick, pack and storage in Amazon warehouses | Size, weight and storage time |
| GST on fees | Tax charged on Amazon's fees | Total fees billed |
| Ads | Sponsored Products and other campaigns | Your daily budget and bids |
Amazon referral fees and selling commission
The referral fee is Amazon's selling commission. It is a percentage of the selling price, and the percentage changes by category and sometimes by price band. Fashion, electronics accessories, books and grocery all carry different rates.
Find your exact category in Amazon's fee schedule. If your product could sit in two categories, check both, because the rate difference can decide whether a product is worth selling.
Closing fees and shipping fees
The closing fee is a fixed amount on each item sold, set by price band and fulfilment method. Shipping is charged as a weight handling fee when Amazon delivers your Easy Ship or FBA orders. It depends on weight, size and how far the parcel travels, so a light, compact pack saves money on every single order.
Amazon FBA fees in India
With FBA you also pay pick and pack fees and monthly storage. Long-term storage of slow stock gets expensive, so send only what you expect to sell in the next few weeks. FBA often pays for itself in faster delivery and better conversion, but run the numbers per product.
Taxes and deductions you should know about
Amazon charges GST on its own fees, and as a marketplace it also makes tax deductions under GST and income tax rules before paying you. You can usually claim these back in your returns, but they affect cash flow. Talk to your CA so your books match your settlement reports.
A simple Amazon seller profit calculator
Amazon offers its own revenue calculator in Seller Central. You can also build a small sheet: start from the selling price, take out GST on the sale, take out every Amazon fee with GST on fees, then take out product cost, packaging, inbound freight, ads and a return allowance. If the last number is thin, change the price, the pack size or the product.
Frequently asked questions
Searches this guide answers
If you searched for any of these, GMT World can help. Tap one to ask us on WhatsApp.
GMT World is an independent agency and is not affiliated with Amazon. Fees and rules change often, so confirm current details on the marketplace's official seller site.
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