Breakdown of Amazon India Fees

Amazon charges several types of fees to sellers. Knowing what each fee covers is crucial for setting competitive prices and maximizing profit.

1. Referral Fee (Category Fee)

This is the commission Amazon charges for selling your product on its platform.

• • Calculation: It is a percentage of the selling price, and the percentage varies significantly based on the product category and often the price slab (e.g., lower price means lower percentage).

• • Your Logic: This calculator uses tiered percentages specific to Books, Clothing, Mobiles, and other major categories you defined.

2. Fixed Closing Fee

This is a fixed fee charged per order, regardless of the category, but depends on the selling price slab.

• • Calculation: This fee is constant within specific price brackets.

• • Your Logic: This calculator uses ₹6, ₹11, ₹34, and ₹65 slabs based on your price thresholds.

3. Shipping / Weight Handling Fee

This covers the cost of physically moving the product from the seller (or Amazon FC) to the buyer.

• • Easy Ship: The full shipping cost is levied here based on weight slabs (0.5 kg, 1 kg, etc.).

• • FBA: This is called the “Weight Handling Fee” and is often a different rate, charged for the outbound delivery from the Fulfillment Centre.

• • Your Logic: Your calculator uses a consistent weight-based formula for all shipments, which is the fee displayed in this row.

4. FBA Pick & Pack Fee (FBA Only)

If you use FBA, Amazon charges this fee for selecting the item from the shelf, boxing it, and preparing it for dispatch.

• • Calculation: Charged per unit, based on the product’s size and weight.

• • Your Logic: This fee is added only when “FBA” is selected and is calculated based on your weight slab formula.

5. GST (18%) on Fees

GST is mandatory on all fees charged by Amazon (Referral, Closing, Shipping, Pick & Pack).

• • Calculation: An additional 18% is applied to the sum of all fees mentioned above.

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Next Steps for Profit Optimization

• • Re-Evaluate Your Costs: Your net profit is calculated before accounting for your own product sourcing costs, inbound shipping (to FBA), and any storage/advertising costs. Make sure to subtract those manually to get your true profit.

• • Local vs. National Shipping: Your current shipping fee formula is for a single rate (likely national). Remember that Amazon’s Easy Ship fees are lower for Local and Regional shipments. You may want to add an option to select the shipping zone in the future for more granular accuracy.

Take Your Amazon Business to the Next Level

Knowing your profit margins is just the first step. Our team specializes in helping Amazon India sellers optimize these numbers by reducing costs and increasing sales.

How we can help you:

• Account Management: Full-service handling of your seller central.

• ROI Optimization: Strategies to lower your ACoS and improve net proceeds.

• Advertising (PPC): Driving targeted traffic to your listings.

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