Amazon Seller Fees in India: A Complete Guide
Table of contents
Introduction
Selling on Amazon India offers vast opportunities for entrepreneurs, small businesses, and startups. However, understanding the various fees associated with selling on the platform is crucial for profitability. In this guide, we’ll delve into the different types of seller fees on Amazon India, recent fee reductions, and tools to help you calculate your costs and profits accurately.
1. Referral Fees
Referral fees are charged as a percentage of the total selling price, including shipping and taxes. These fees vary by product category and typically range from 2% to 20%. For instance:
- Books: 4.5%
- Consumer Electronics: 5%
- Clothing & Accessories: 15%
- Home & Kitchen: 18%
Note: Amazon India has recently reduced referral fees for several categories. For example, in September 2024, selling fees were reduced by 3% to 12% across 59 product sub-categories, including apparel, shoes, and grocery.
2. Closing Fees
A fixed closing fee is applicable to certain categories, such as media products (books, music, videos). This fee starts at ₹5 and varies based on the product’s price range and fulfillment channel.
3. Weight Handling Fees
These fees apply to the shipping and delivery of products and start at ₹29 per item shipped. The exact amount depends on the item’s volume and the delivery distance. Sellers using Amazon’s Fulfillment by Amazon (FBA) service may incur additional fees based on the weight and size of the product.
4. FBA Fees (Fulfillment by Amazon)
Sellers opting for FBA incur additional fees for storage, picking, packing, and shipping. As of 2025:
- Pick and Pack Fee: ₹14 per unit for standard items; ₹26 per unit for oversized, heavy, and bulky items.
- Storage Fees: ₹45 per cubic foot per month.
- Removal Fees: ₹10 for standard shipping and ₹30 for expedited shipping of standard-size items.
5. Marketplace Fee
Amazon India has introduced a ₹5 marketplace fee per order. This fee is designed to support the platform’s operations and is applicable to all sellers.
6. GST on Fees
Goods and Services Tax (GST) is applicable to the fees charged by Amazon. The GST rate varies based on the seller’s GST registration:
- Without GST Registration: GST is not applicable.
- With GST Registration: GST is applicable at the prevailing rate (typically 18%) on the total fees.
7. Recent Fee Reductions
In a move to support small and medium businesses, Amazon India has implemented significant fee reductions:
- Zero Referral Fees: Amazon India now offers zero referral fees on over 1.2 crore products priced below ₹300, covering more than 135 categories, including apparel, shoes, and grocery.
- Fee Reductions: In September 2024, Amazon India announced a reduction in selling fees—ranging from 3% to 12%—for 59 product sub-categories on the marketplace.
8. Tools to Calculate Amazon Seller Fees
To accurately determine your costs and profits, consider using the following tools:
- Amazon FBA Profitability Calculator: This official tool helps estimate FBA fees and potential profits based on product details.
- Digicommerce Amazon Seller Calculator: An external tool that provides a detailed breakdown of fees, including referral, closing, and shipping fees.
- Gonukkad Amazon Seller Calculator: A user-friendly calculator that helps optimize pricing strategies and maximize profit margins.
9. Conclusion
Understanding Amazon India’s fee structure is essential for pricing your products competitively and ensuring profitability. By staying informed about fee changes and utilizing available tools, sellers can make informed decisions and optimize their business strategies.