Amazon India Fees Explained: What Really Eats Your Profit Margin in 2025
You listed your first product on Amazon India. Someone buys it. Amazon credits your account — and the amount is ₹180 less than you expected.
Where did it go? Let us find out.
Amazon India charges sellers through multiple mechanisms, and understanding all of them is the difference between a profitable business and a hobby that costs you money.
The 6 Ways Amazon India Charges You
1. Referral Fee (Commission)
This is the primary fee — a percentage of the selling price Amazon takes for allowing you to sell on its platform.
| Category | Referral Fee % | Notes |
|---|---|---|
| Mobile Phones | 2% | Lowest fee category |
| Electronics | 8% | Consumer electronics, laptops |
| Home & Kitchen | 12% | Cookware, décor, storage |
| Beauty & Personal Care | 15% | Skincare, hair care, wellness |
| Clothing & Apparel | 17% | Highest for fashion |
| Footwear | 15% | |
| Toys & Baby | 15% | |
| Books | 8% | |
| Sports & Fitness | 12–15% | |
| Grocery & Gourmet | 8–12% |
2. GST on Referral Fee
Amazon adds 18% GST on top of the referral fee. So if referral is ₹105, you also pay ₹18.90 in GST. Total: ₹123.90. This GST is recoverable as ITC if you are GST-registered, but it reduces immediate cash flow.
3. Fulfilment / Shipping Fee
Whether you use Easy Ship or FBA, there is a per-shipment fee:
- Easy Ship (local zone): ₹30–55 for small/light items
- Easy Ship (national): ₹60–120 for standard items
- FBA (Fulfilled by Amazon): ₹35–160+ depending on size and weight tier
4. Closing Fee
A fixed fee of ₹2–25 per order depending on price bracket. Often overlooked, adds up significantly at high volume.
5. TDS (Tax Deducted at Source)
Amazon deducts 1% TDS from all payments to sellers. You recover this when filing your income tax return, but you need to have the ITC working capital in the meantime.
6. Return Handling / Restocking Fee
When customers return products, Amazon charges:
- Outward + return shipping cost = you typically lose ₹60–180 per return
- FBA restocking: ₹150–500 if item needs repackaging
- Category return rates on Amazon India: 8–22% in beauty; 15–35% in apparel
Real Example: ₹699 Beauty Product
| Fee | Amount (₹) |
|---|---|
| Selling Price | 699.00 |
| Referral Fee (15%) | −104.85 |
| GST on referral (18%) | −18.87 |
| Easy Ship (national) | −65.00 |
| Closing fee | −8.00 |
| TDS (1%) | −6.99 |
| Amount Received | 495.29 (70.9% of MRP) |
Amazon keeps 29.1% of your selling price before you have paid for the product, packaging, or ads. Price your product knowing this — not hoping for it.
Calculate Your Real Amazon Margin
The MOQBridge Profit Margin Calculator automatically applies current Amazon India fees by category and shows your net margin after all fees, cost of goods, and shipping — in real INR values.
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Apply what you learned — calculate your real MOQ, costs, and profitability in minutes.