Understanding Amazon India Seller Fees in 2026
Selling on Amazon.in gives retailers and direct-to-consumer (D2C) brands direct access to hundreds of millions of Indian shoppers. However, failing to accurately model marketplace deductions before launching an ASIN is one of the quickest routes to negative cash flow.
Amazon deductions are not a single flat percentage; they consist of four primary fee components plus mandatory statutory taxes. Below is the breakdown of how every fee is assessed.
1. Referral Fee (Category-Driven Commission)
The referral fee is Amazon's commission for facilitating the transaction. It is calculated as a percentage of the gross selling price paid by the customer, including any delivery charge passed on to the buyer.
- Category Slabs: Most categories have tiered slabs. For instance, high-ticket electronics like Laptops may charge 6%, while apparel, accessories, or footwear may charge between 14% and 24%.
- Zero-Referral Fee Initiatives: Under Amazon India’s fee schedules, certain categories offer a 0% referral fee on low selling prices (e.g. items priced up to ₹300, ₹500, or ₹1,000) to incentivize catalog selection in low-cost everyday essentials.
2. Fixed Closing Fee
The closing fee is levied on every unit sold, regardless of the referral commission. It varies according to the item price band and the fulfilment channel:
- Easy Ship: Slabs are ₹0–₹300 (₹2), ₹301–₹500 (₹23), ₹501–₹1,000 (₹48), and Above ₹1,000 (₹79).
- Self Ship: Higher closing fee rates apply (₹20, ₹26, ₹51, and ₹101 respectively) to account for marketplace tracking and support.
- FBA / Fulfilment Centre: Low-cost items up to ₹500 benefit from Group A, B, C, or D fee classifications (ranging between ₹14 and ₹27), while items above ₹1,000 generally incur ₹55 (or ₹75 for select oversized categories).
3. Weight Handling / Shipping Rates
For Easy Ship and FBA, Amazon charges weight-handling fees for transporting the order from the warehouse or seller pick-up point to the customer. Amazon calculates this using the greater of actual packed weight or volumetric weight:
Volumetric Weight (kg) = (Length in cm × Width in cm × Height in cm) ÷ 5000
Items with a light actual weight packaged in large corrugated boxes will be billed at the volumetric rate. Minimum chargeable weight for Standard size units is 500 grams, with incremental steps at 1 kg, 2 kg, 5 kg, and per additional kilogram thereafter.
4. 18% GST on Seller Fees
The Government of India treats marketplace services as taxable B2B transactions. Amazon India adds 18% Goods and Services Tax (GST) on top of all referral fees, closing fees, shipping fees, and storage fees.
Input Tax Credit (ITC): If you hold a valid regular GSTIN, the 18% GST billed by Amazon will be reported in your monthly GSTR-2B. You can offset this full amount against the output GST you owe on your customer sales, neutralizing this expense.
Real-World Example: Bicycle Accessory Priced at ₹599 (Easy Ship)
Consider a standard accessory with a landed manufacturing/purchase cost of ₹200 and a packed weight of 600 grams:
- Sale Price: ₹599.00
- Referral Fee (0% promotional tier up to ₹1000): ₹0.00
- Closing Fee (₹501–₹1000 slab): ₹48.00
- Easy Ship Weight Handling (Standard Tier, Regional 600g): ₹75.00
- Total Amazon Service Fees: ₹48 + ₹75 = ₹123.00
- 18% GST on Amazon Fees: ₹22.14
- Total Amazon Marketplace Deductions: ₹145.14
- Net Bank Payout: ₹599 − ₹145.14 = ₹453.86
- Net Profit (after ₹200 product cost & ₹15 packaging): ₹453.86 − ₹215 = ₹238.86 (39.8% Net Margin)
Frequently Asked Questions (FAQ)
How often does Amazon India revise its seller fee rate card?
Amazon India typically updates its fee policies once or twice per year, with major adjustments traditionally announced in March/April and ahead of the festive Diwali season (August/September). This calculator reflects current 2026 fee tables.
What is the STEP program and how does it save shipping costs?
The Amazon STEP program grades sellers into tiers (Basic, Standard, Advanced, Premium) based on key performance metrics including order defect rate (ODR), cancellation rate, and on-time dispatch. Reaching Advanced or Premium tiers grants up to ₹4 to ₹6 discount on every Easy Ship package.
Why does my bank disbursement differ from this payout calculation?
While this tool models per-unit transactional fees, actual disbursements include marketplace reserve holds, customer return refunds, shipping chargebacks, TDS u/s 194-O (0.1%), TCS under GST (1%), and active sponsored ads ad spend deducted from your settlement balance.
Is Easy Ship or FBA better for high-volume products?
FBA items receive the Prime badge, which improves Buy Box placement and increases conversion. However, FBA introduces pick-and-pack and monthly inventory storage fees. Easy Ship eliminates storage fees because inventory stays in your warehouse until purchased.