Selling on Amazon India gives businesses access to millions of customers. But to run a profitable Amazon business, it’s essential to understand all associated costs—including Amazon’s category-wise commission rates.
These commissions, also known as Referral Fees, vary depending on your product category. In this detailed blog, Infobeam Solution explains how Amazon category commissions work, the latest commission structure, and how you can reduce costs and boost profits.
📦 What Is Amazon’s Category Commission?
When you sell a product on Amazon, you pay a Referral Fee, which is a percentage of the product’s selling price (including shipping charges, if applicable). This fee is called a Category Commission, and it varies by product category.
For example:
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If you sell a ₹1,000 mobile cover and the commission is 17%, you’ll pay ₹170 to Amazon.
🧾 Key Types of Amazon Seller Fees
Before diving into category-wise rates, it’s important to understand the different Amazon fees:
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Referral Fee (Commission) – Based on product category
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Closing Fee – Fixed fee per item sold
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Shipping Fee – Based on weight, shipping type (Easy Ship, FBA, Self-Ship)
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FBA Fees – For storage, packing, and shipping if you use Fulfillment by Amazon
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GST on Amazon Fees – 18% GST applicable on all Amazon charges
🗂️ Amazon India Category-Wise Commission Rates (2025 Updated)
Here’s a table of popular product categories and their referral fee percentages on Amazon India:
| Category | Commission Rate |
|---|---|
| Mobile Phones | 2% – 5% |
| Mobile Accessories | 17% |
| Consumer Electronics (Cameras, TVs) | 4% – 7% |
| Laptops and Computers | 5% – 6% |
| Home & Kitchen | 9% – 15% |
| Fashion (Clothing, Shoes, etc.) | 17% |
| Beauty & Personal Care | 12% – 15% |
| Grocery & Gourmet Foods | 8% – 15% |
| Books | 4% |
| Toys & Games | 12% – 15% |
| Jewellery | 3% – 20% (slab-wise) |
| Watches | 12% – 17% |
| Pet Supplies | 10% – 13% |
| Automotive Accessories | 12% – 15% |
| Home Improvement Tools | 10% – 15% |
| Baby Products | 8% – 12% |
| Furniture & Home Décor | 10% – 15% |
| Office Supplies | 10% – 13% |
| Musical Instruments | 12% – 15% |
⚠️ Note: These rates are subject to change. Always check the Amazon Fee Schedule for the latest updates or ask Infobeam Solution for assistance.
🧠 How Is Amazon Commission Calculated?
Let’s break it down with an example:
Product: Bluetooth Speaker
Selling Price: ₹2,000
Commission Rate (Consumer Electronics): 7%
Referral Fee = ₹2,000 × 7% = ₹140
If you also pay a ₹50 shipping fee and a ₹20 closing fee, your total Amazon fee would be ₹210 (excluding GST).
📉 How to Reduce Amazon Commission Impact
While commissions are fixed per category, Infobeam Solution offers several strategies to improve your profit margins:
✔️ 1. Choose Profitable Categories
Some categories (e.g., electronics, books) have lower fees. Smart category selection can reduce commission percentages.
✔️ 2. Bundle Products
Selling combos or kits helps increase Average Order Value (AOV) and reduce the overall % cost per unit.
✔️ 3. Negotiate Bulk Margins with Suppliers
Higher margins = better profit even after Amazon’s cut.
✔️ 4. Use Amazon FBA Strategically
For high-volume sellers, Fulfillment by Amazon can lower shipping + storage overhead and increase Buy Box chances.
✔️ 5. Claim GST Input Credit
You can claim GST paid on Amazon fees in your tax filings.
✔️ 6. Optimize Ads to Reduce ACoS
Don’t let ads eat your profits. Our PPC experts at Infobeam Solution help you maintain healthy margins while boosting sales.
🧮 Example Comparison: Commission Impact by Category
| Product | Price | Category | Commission % | Referral Fee |
|---|---|---|---|---|
| Men’s T-Shirt | ₹500 | Fashion | 17% | ₹85 |
| Mobile Cover | ₹300 | Mobile Accessories | 17% | ₹51 |
| Home Decor Clock | ₹1,000 | Home & Kitchen | 15% | ₹150 |
| Bluetooth Earbuds | ₹2,000 | Consumer Electronics | 7% | ₹140 |
As you can see, high-margin products with lower commissions give better profits.
💡 Infobeam Solution: Your Partner in Amazon Growth
At Infobeam Solution, we help Amazon sellers maximize profits through:
✅ Category selection & product strategy
✅ Fee structure guidance
✅ Profit margin analysis
✅ Listing optimization for more sales
✅ Amazon Ads (PPC) management
✅ FBA support & account handling
✅ Amazon Global Selling for USA, UAE, etc.
🔍 FAQs on Amazon Commission
Q1. Do I pay Amazon commission even if my product doesn’t sell?
No. Commission is charged only when a product is sold.
Q2. Is the commission calculated on MRP or selling price?
It’s calculated on the final selling price (inclusive of shipping, if charged to the buyer).
Q3. Can Amazon change commission rates?
Yes. Amazon updates commission structures periodically.
Q4. Do I need to pay GST on commission?
Yes. Amazon charges 18% GST on all fees, which you can claim as input credit.
🏁 Conclusion: Know Your Fees, Grow Your Business
Understanding Amazon category commission rates is essential for pricing your products correctly and maintaining profitability. With smart category choices, pricing strategies, and expert support from Infobeam Solution, you can grow your Amazon business confidently.
