Understanding Amazon Seller Charges in India (FY 2026 Breakdown)
When you sell on Amazon India, your listed selling price undergoes multiple layers of statutory and platform deductions before reaching your bank account. Many sellers mistakenly assume Amazon only takes an 8% to 15% referral fee, only to discover negative settlement cycles due to uncalculated fixed closing fees, weight handling, and 18% GST.
1. Referral Fee Commission
A percentage fee charged on every sold item, varying directly by category. For instance, Consumer Electronics charges 9% to 11%, while Fashion charges 13.5% up to ₹500 and 16.5% above ₹500.
2. Fixed Closing Fee
A mandatory per-unit fee based on product price brackets: ₹0–₹250 (₹5), ₹251–₹500 (₹11), ₹501–₹1000 (₹25), and ₹1001+ (₹60). Pricing ₹1 above a threshold triggers an immediate fee hike.
3. Shipping & Weight Handling
Calculated based on whether your shipment is Local (same city), Regional (same state), or National (inter-state), charged per 500g physical or volumetric slab.
4. 18% GST Friction & ITC
Amazon is legally required to levy 18% GST on all its services (referral, closing, shipping). Sellers with active GSTIN can recover this entire amount as Input Tax Credit (ITC) on GSTR-2B.