Amazon Seller Fees in India Explained (with the 2026 Zero Referral Fee)

The main fee types

• Referral fee – a percentage of the selling price that depends on the category.
• Closing fee – a fixed fee per item sold, based on price band and fulfilment channel.
• Weight handling / shipping fee – for Easy Ship and FBA, based on weight, size and distance.
• FBA fees – pick and pack plus storage, if you use Fulfilled by Amazon.
• Other fees – such as removal or long-term storage on FBA, and optional advertising spend.
• GST is charged on Amazon's fees; registered sellers can usually claim it as input tax credit.

The 2026 change: zero referral fee under ₹1,000

From 16 March 2026, Amazon India removed the referral fee on products priced below ₹1,000 across more than 1,800 categories – covering over 12.5 crore products, including t-shirts, sarees, shoes, earphones, toys, home and fashion jewellery. Amazon also cut Easy Ship fees by over 20% for products under ₹300 and introduced lower fees on additional units shipped in the same box.

For a seller of ₹399–₹999 products, this can change the economics completely. A product that barely broke even before may now leave room for advertising or a lower price.

How to calculate your payout

Use this simple order of operations for each SKU:

• Start with the selling price (including GST).
• Subtract your output GST to get the net sale value.
• Subtract referral (if any), closing and shipping/weight handling fees.
• Subtract FBA pick-pack and storage if applicable.
• Subtract product cost, packaging and label costs.
• Subtract an allowance for returns (for fashion, plan for a meaningful percentage) and for advertising.

What is left is your real profit per unit. Amazon's revenue calculator inside Seller Central helps with the Amazon fee part; the returns and ads allowance you must estimate from your own data.

Price bands matter

Closing fees and some other charges change at price thresholds. A product priced at ₹1,005 may pay noticeably more than the same product at ₹999 once the referral fee applies again. Check where your price sits relative to these bands and test prices just below a threshold.

Ways to reduce fees legitimately

• Keep products light and compact – weight and volume drive shipping fees.
• Bundle multiple units (packs of 2 or 3) to benefit from lower fees on additional units.
• Avoid long-term FBA storage by sending smaller, more frequent shipments.
• Reduce returns with accurate size charts and images; every return costs shipping twice.
• Review the fee preview for each SKU monthly – categories and rates change.

A worked example

Imagine a kids' cotton frock sold at ₹799 through Easy Ship, weighing about 300 g packed, with 5% GST. The price includes GST, so the taxable value is about ₹761. Because the price is under ₹1,000, the referral fee in an eligible category is zero from March 2026. You still pay a closing fee and the Easy Ship weight-handling fee for that weight and distance, plus GST on those fees. If the product costs ₹280 to make, ₹15 to pack and label, and you plan for returns and ₹60 of advertising per unit sold, you can now see whether the remaining margin is healthy. Do this for every SKU – the numbers often surprise.

Use the exact fee values from your Seller Central fee preview rather than averages; they depend on category, weight, size and location.

Hidden costs to include

• Returns – shipping both ways plus products that come back unsellable.
• Advertising – most products need some ad spend to stay visible.
• TCS and TDS – tax collected/deducted at source on marketplace sales are credited to you but affect cash flow; reconcile them in your GST and income tax returns.
• Packaging and labels – polybags, boxes, tape, label rolls.
• Payment cycle – money arrives after the settlement period, so you need working capital.

Reading your settlement report

Download the payment and transaction reports from Seller Central every settlement cycle. Match each order's fees to what you expected. Mistakes – such as a product measured at the wrong weight – happen, and you can raise a case to correct them. Sellers who never check settlements often pay more than they should for months.

When fees change again

Amazon revises fees periodically, often before big sale seasons. Keep your profit sheet formula-driven so that updating one fee recalculates every SKU, and review prices whenever a fee change is announced.

Checklist

• Download the latest fee schedule
• Build a per-SKU profit sheet
• Check each price against fee thresholds
• Add a returns and ads allowance
• Re-check margins after every fee announcement

Free tools for Amazon sellers

The Amazon label crop with SKU stamping on LabelCroppers crops Easy Ship and Self Ship labels to 4×6, reads the SKU and quantity from each invoice and prints them on the label, sorts orders by SKU and builds a picklist. Pair it with the FBA FNSKU sticker generator and the FBA box label tool for FBA shipments. Everything runs in your browser – your orders and customer data are never uploaded.

Frequently asked questions

Sources and official links

• Amazon India press release: zero referral fees on products under ₹1,000 (March 2026)
• Amazon.in seller fee schedule

Marketplace fees and policies change often. Always confirm current rules in your seller panel.