The three core fees
- Referral fee: a percentage of the item price, set by category. This is Amazon’s main commission and ranges a lot across categories.
- Closing fee: a flat fee per item that usually scales with the price band of the product.
- Weight-handling / shipping fee: charged on the package weight slab and the shipping distance (local, regional, national). This only applies when Amazon handles logistics (FBA or Easy Ship).
GST at 18% is then applied on top of these fees, exactly as on other marketplaces.
Fulfilment model changes the bill
Your choice of how the order ships is the biggest driver of cost beyond the referral fee:
| Model | Who ships | What you pay extra |
|---|---|---|
| FBA (Fulfilled by Amazon) | Amazon, from its warehouse | Storage fees + fulfilment fees (pick, pack, weight handling) |
| Easy Ship | You pack, Amazon picks up & delivers | Weight-handling / shipping fee per order |
| Self-Ship | You arrange your own courier | No Amazon shipping fee, but your own courier cost |
FBA can raise conversion (Prime badge, faster delivery) but adds storage and fulfilment fees that punish slow-moving stock. Self-Ship gives you control over courier cost but you carry the operational load and the delivery-performance risk. Model each before committing inventory.
Worked example (Easy Ship)
| Line item | Amount (₹) |
|---|---|
| Selling price | 1,199 |
| Referral fee (assume ~15%) | −180 |
| Closing fee | −45 |
| Weight-handling fee | −85 |
| GST on fees (18%) | −56 |
| Settlement to bank | ≈ 833 |
About ₹833 settles on a ₹1,199 sale. Subtract product cost, packaging and a return provision for your real margin. Under FBA the shipping line is replaced by fulfilment + storage fees, which can be lower per order for fast movers but higher overall for stock that sits.
Avoidable costs that erode Amazon margins
- Long-term storage fees (FBA): aged inventory is charged extra — clear or remove slow stock before it accrues.
- Removal/disposal fees: pulling unsold FBA stock back costs money; plan quantities to sell through.
- Returns: customer-friendly return policies mean apparel and unpredictable-fit items return often; provision for it.
- Wrong category mapping: lands you on a higher referral rate than necessary — verify your category.
Predicting payout before you list
- Pick the fulfilment model you will actually use.
- Look up your category’s current referral and closing fees.
- Add the weight-handling (Easy Ship/FBA) or your courier cost (Self-Ship).
- Add 18% GST on the Amazon fees.
- Subtract from the selling price to get settlement, then subtract COGS and a return provision for net profit.
The Amazon seller price calculator applies referral, closing and weight-handling fees so you can estimate fees, margin and settlement before listing, and the P&L tool reconciles your actual Amazon statements at SKU level.