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A commission is a payment made to a salesperson in exchange for their assistance in starting or finishing a sale. A fixed charge or a percentage of the sales revenue, gross margin, or profit may be used to calculate the commission.
Types of Amazon Seller Fees In India
There are mainly three types of Amazon Seller fees excluding Goods and Service Tax (GST), that one has to pay:
- Amazon Referral Fee
- Fixed Closing Fee
- Shipping Fee (Easy Ship Weight Handling Fee)
Each of these components has been explained below along with the latest fee structure.
In addition, there are additional charges involved when using FBA (Fulfillment by Amazon) services which include:
- FBA Pick and Pack Fee
- Storage Fee
- FBA Weight Handling Fee
Which Factors Influence Amazon Selling Fees?
Amazon selling fees are influenced by the following factors:
- Product category
- Product subcategory
- The selling price of your product
- Fulfillment Mode (Easy Ship, Self-Ship, Amazon FBA, Amazon Seller Flex, etc.)
- Source and destination location of the order (local, zone, national)
- Product weight and dimensions (by weight, by volume)
- Storage time (short-term, long-term – when stored in Amazon Warehouse)
- Type of transport (prepaid, cash on delivery)
- Return type (by customer, courier (RTO), exchange
#1 Amazon India Seller Referral Fee
You will be assessed a specific fee for each sale you make through Amazon’s marketplace. It is the fees sellers have to pay to enjoy the benefits of being a part of the Amazon marketplace. The cost, which is often referred to as a referral fee, is a fixed percentage of the final sales price that starts at 2%. Depending on the category, the proportion can range from as little as 2% (for jewelry-gold coins) to as much as 38%. (for warranty services). Here’s how referral fees are calculated:
Total referral fees = Price of each item x Referral fee percentage
Media
| Category | Referral Fee |
|---|---|
| Books | 2% for item price <=2504% for item price >250 and <=5009% for item price >500 and <=100012.5% for item price > 1000 |
| Movies | 6.50% |
| Music | 6.50% |
| Software Products | 11.50% |
| Video Games | 7.00% |
| Video Games – Accessories | 9% for item price <=50012% for item price > 500 |
| Video Games – Consoles | 7.00% |
| Video Games – Online game services | 2.00% |
| Toys | 9.5% for item price <=100011% for item price > 1000 |
| Toys – Drones | 10.5% |
| Toys – Balloons & Soft Toys | 11.00% |
Soft Line
| Category | Referral Fee |
|---|---|
| Apparel – Sarees and Dress Materials | 10.5% for item price <=30018.00% for item price > 300 |
| Apparel – Sweat Shirts and Jackets | 13.00% for item price <=30020.00% for item price > 300 |
| Apparel – Shorts, Three-fourths and Capirs | 14.00% for item price <=30017.00% for item price >300 and <=100019.00% for item price > 1000 |
| Apparel – Women’s Kurtas and Kurtis | 15.00% for item price <=30016.5% for item price >300 and <=100018.00% for item price > 1000 |
| Apparel – Men’s T-shirts (except Polos, Tank tops and full sleeve tops) | 17.00% for item price <=50015.00% for item price > 500 |
| Apparel – Women’s Innerwear / Lingerie | 12.50% for item price <=50011.00% for item price > 500 |
| Apparel – Other Innerwear | 12.50% for item price <=50012.00% for item price > 500 |
| Apparel – Sleepwear | 12.00% |
| Apparel Accessories | 14.00% for item price <=30018.00% for item price > 300 |
| Apparel – Others | 14% for item price <=30016.5% for item price >300 and <=100018.00% for item price > 1000 |
| Backpacks | 12.00% for item price <=5009.00% for item price > 500 |
| Eyewear – Sunglasses, Frames and Zero Eye Glasses | 12% |
| Fashion Jewellery | 22.5% for item price <=100024% for item price > 1000 |
| Fine Jewellery (Gold Coins) | 2.5% |
| Fine Jewellery (studded) | 10.00% |
| Fine Jewellery (unstudded and solitaire) | 5.00% |
| Silver Coins and Bars | 2.5% |
| Silver Jewellery | 10.5% |
| Handbags | 12.50% for item price <=5009.5% for item price > 500 |
| Luggage – Suitcase and Trolleys | 6.50% |
| Luggage – Travel Accessories | 11.00% for item price <=50010.00% for item price > 500 |
| Luggage – Other Subcategories | 5.50% |
| Shoes | 14.00% for item price <=100015.00% for item price > 1000 |
| Flip Flops, Fashion Sandals and Slippers | 9.5% for item price <=50012.5% for item price > 500 |
| Kids Footwear | 6.00% for item price <=50014.00% for item price > 500 |
| Wallets | 11.50% |
| Watches | 13.50% |
| Fashion Smartwatches | 14.50% |
CE/PC/Wireless
| Category | Referral Fee |
|---|---|
| Mobile Phones & Tablets (including Graphic Tablets) | 5.00% |
| Laptops | 6.00% |
| Scanners and Printers | 8.00% |
| PC Components (RAM, Motherboards) | 5.5% |
| Desktops | 6.50% |
| Monitors | 6.50% |
| Laptop and Camera Battery | 12.00% |
| Laptops Bags & Sleeves | 12.00% for item price <=5009.00% for item price > 500 |
| USB flash drives (Pen Drives) | 16.00% |
| Hard Disks | 8.50% |
| Kindle Accessories | 25.00% |
| Memory Cards | 12.00% |
| Modems & networking devices | 14.00% |
| Car Electronics Devices | 5.50% |
| Car Electronics Accessories | 10.50% |
| Electronic Devices (except TV, Camera & Camcorder, Camera Lenses and Accessories, GPS Devices, Speakers) | 9.00% |
| Landline Phones | 6.00% |
| Smart Watches & Accessories | 14.5% |
| Television | 6.00% |
| Camera and Camcorder | 5.00% |
| Camera Lenses | 7.00% |
| Camera Accessories | 11.00% |
| GPS Devices | 13.50% |
| Speakers | 11.00% |
| Headsets, Headphones and Earphones | 18.00% |
| Computer/Laptop – Keyboards and Mouse | 13.00% |
| Power Banks and Chargers | 18.00% |
| Accessories – Electronics, PC and Wireless | 17.00% |
| Cases/Cover/Skin/Screen guard | 3% for item price <=15018% for item price > 150 and <=30020% for item price > 300 and <= 50025% for item price > 500 |
| Cables and Adapters – Electronics, PC, Wireless | 20.00% |
| Car Cradles, Lens Kits and Tablet Cases | 21.00% |
| Warranty Services | 30.00% |
| Office Products – Office supplies, stationary, Paper products, Art and Craft Supplies, Pens, Pencils & Writing Supplies | 8.00% |
| Office Products – Machines & Electronic Devices | 9.5% |
| Projectors, Home Theatre Systems, Binoculars and Telescopes | 6% |
| Musical Instruments – Guitars | 7.50% |
| Musical Instruments – Keyboards | 5.00% |
| Musical Instruments (excluding Guitars and Keyboards) | 7.50% |
| Musical Instruments – DJ & VJ Equipment,Recording and Computer,Cables & Leads,Microphones,PA & Stage | 9.50% |
Consumables
| Category | Referral Fee |
|---|---|
| Baby Hardlines – Swings, Bouncers and Rockers, Carriers, WalkersBaby Safety – Guards & LocksBaby Room Décor Baby FurnitureBaby FurnitureBaby Car Seats & AccessoriesBaby Strollers, Buggies & Prams | 8.00% |
| Baby Products – Other | 6.00% for item price <=10008.00% for item price > 1000 |
| Beauty Products | 5.00% |
| Facial Steamers | 7.00% |
| Deodrants | 6.5% |
| Beauty – Fragrance | 8.5% for item price <=25013.00% for item price >250 |
| Luxury Beauty | 5.00% |
| Grocery and Gourmet | 4.00% for item price <=5005.5% for item price > 500 and <=10009.5% for item price > 1000 |
| Grocery and Gourmet – Hampers & Gifting | 6% for item price <=10009.5% for item price > 1000 |
| Health and Personal Care – Medical Equipment | 8.00% |
| Health and Personal Care – Nutrition | 9.00% |
| Health and Personal Care – Ayurvedic Products, oral care and hand sanitizers | 6.00% for item price <=5008.00% for item price > 500 |
| Health and Personal Care – Other Household Supplies | 3.5% for item price <=5006.5% for item price > 500 |
| Health and Personal Care – Contact Lens and Reading Glasses | 12.00% |
| Health and Personal Care (HPC) – Others | 11.00% |
| Personal Care Appliances – Grooming and styling | 10.00% |
| Personal Care Appliances – Electric Massagers | 9.5% for item price <= 100012.00% for item price > 1000 |
| Personal Care Appliances – Glucometer and Glucometer Strips | 5.5% |
| Personal Care Appliances – Thermometers | 8.5% |
| Personal Care Appliances – Weighing Scales and Fat Analyzers | 10.5% for item price <= 50012.00% for item price > 500 |
| Personal Care Appliances – Others | 7.50% |
| Pet Products | 6.5% for item price <=25011% for item price >250 |
| Prescription Medicine | 4.5% |
Other Hardline
| Category | Referral Fee |
|---|---|
| Automotive – Other Subcategories | 20.00% |
| Automotive – Tyres and Rims | 5.00% |
| Automotive – Helmets, Oils & Lubricants, Batteries, Pressure Washer, Vacuum Cleaner, Air Freshener, Air Purifiers and Vehicle Tools | 6.50% |
| Automotive Accessories – Floor Mats, Seat/Car/Bike Covers | 13.00% |
| Automotive Vehicle – 2-wheelers, 4-wheelers and Electric Vehicles | 2.00% |
| Automotive – Car and Bike parts, Breaks, Styling and body fittings, Transmission, Engine parts, Exhaust systems, Interior fitting, Suspension and Wipers | 11.00% |
| Automotive – Cleaning Kits (Sponges, Brush, Duster, Cloths and liquids), Car interior & exterior care (Waxes, polish, Shampoo and other), Car and Bike Lighting and Paints | 9.00% |
| Large Appliances Accessories | 16.00% |
| Large Appliances — Chimneys | 7.5% |
| Large Appliances (excl. Accessories and Chimneys) | 5.5% |
| Large Appliances – Refrigerators | 5.00% |
| Furniture | 14.5% for item price <= 1500010.00% for item price > 15000 |
| Bean Bags and Inflatables | 11.00% |
| Business and Industrial Supplies – Robotics, Lab Supplies, Soldering equipment, Personal Protective Equipment (excluding masks) and PPE kits | 11.50% for item price <= 150005.00% for item price > 15000 |
| Business and Industrial Supplies – Testing & Measuring instruments, Tapes and Adhesives, Packaging Material, 3D printer, Thermal printer and Barcode Scanner | 8.00% for item price <= 150005.00% for item price > 15000 |
| Business and Industrial Supplies – Material Handling Equipment, Janitorial & Sanitation, Medical & Dental Supplies, Commercial Kitchen and Refrigeration Equipment | 5.5% |
| Business and Industrial Supplies – Power Tools & accessories, Welding machines, Microscopes, Industrial Electrical products | 9.00% |
| Weighing Scales – BISS and Kitchen | 10.5% for item price <= 50012.00% for item price > 500 |
| Bicycles | 8.00% |
| Gym Equipments | 9.00% |
| Sports – Cricket and Badminton Equipments,Tennis, Table Tennis , Squash,Football, Volleyball, Basketball, Throwball,Swimming | 6% |
| Sports & Qutdoors (excl. Cricket and Badminton Equipments) | 9.00% for item price <=50011.5% for item price >500 |
| Sports & Outdoors – Footwear | 14.00% for item price <=100015.00% for item price >1000 |
| Consumable Physical Gift Card | 5.00% |
| Sports Collectibles | 13% for item price <=30017% for item price >300 |
| Entertainment Collectibles | 13% for item price <=30017% for item price >300 |
| Coins Collectibles | 15.00% |
| Fine Art | 20.00% |
| Masks | 6.00% |
| Kitchen – Non Appliances | 6% for item price <=30011.5% for item price >300 |
| Gas Stoves and Pressure Cookers | 7.50% |
| Glassware and Ceramic ware | 6% for item price <=30011.5% for item price >300 |
| Small Appliances | 5.5% for item price <=50006.5% for item price > 5000 |
| Fans and Robotic Vacuums | 5.5% for item price <=30007.00% for item price > 3000 |
| Wall Art | 13.50% |
| Home Fragrance and Candles | 10.5% |
| Home Furnishing | 12% for item price <=100013% for item price > 1000 |
| Carpets, Bedsheets, Blankets and covers | 6.00% for item price <=50010.5% for item price > 500 |
| Home Storage | 10.00% for item price <=30013.00% for item price >300 |
| Home – Other Subcategories | 17.00% |
| Home – Waste & Recycling | 6.00% |
| Craft Materials | 8.00% |
| Home – Posters | 17.00% |
| Home Improvement – Wallpapers | 13.5% |
| Home improvement (excl. accessories), including Home Security Systems | 9.00% |
| Ladders, Kitchen and Bath fixtures | 8.00% |
| LED Bulbs and Battens | 7.00% |
| Indoor Lighting – Wall, ceiling fixture lights, lamp bases, lamp shades and Smart Lighting | 12.00% |
| Indoor Lighting – Others | 16.00% |
| Clocks | 8.00% |
| Cushion Covers | 10.00% |
| Sofa Slipcovers and Kitchen Linens | 14.50% |
| Lawn & Garden – Commercial Agricultural Products | 3.00% |
| Lawn & Garden- Solar devices (Panels, Inverters, Charge controller, Battery, Lights, Solar Gadgets) | 5.00% |
| Lawn & Garden- Chemical pest control, Mosquito Nets, Bird Control, Plant Protection, Foggers | 6.00% for item price <= 10008% for item price > 1000 |
| Lawn & Garden- Outdoor Equipments (Saws, Lawn Mowers, Cultivator, Tiller, String Trimmers etc), Water Pumps, Generators, Barbeque Grills, Greenhouses | 5.50% |
| Lawn & Garden- Planters, Fertilizers, Watering and Other Subcategories | 13.00% for item price <= 30010.00% for item price > 300 and <=150005% for item price > 15000 |
| Lawn and Garden – Plants, Seeds, Bulbs and gardening tools | 9.00% for item price <= 50010.00% for item price > 500 |
#2 Fixed Closing Fee
Amazon charges an additional fee on top of referral fee based on the price range. FBA closing fees are the fees based on item price and category, while easy ship and self ship closing fees are the fees based on item price.
You can refer the below mentioned for the fixed closing fee (INR per unit):
| Item Price including Shipping Charges (INR) | Easy Ship (excl. Easyship Prime) | Easy Ship Prime | Self-Ship | FBA (excluding Seller Flex) | FBA (excluding Seller Flex) Select Categories |
|---|---|---|---|---|---|
| 0-250 | 5 | 8 | 7 | 25 | 12* |
| 251-500 | 9 | 12 | 20 | 20 | 12** |
| 501-1000 | 30 | 25 | 36 | 18 | 18 |
| 1000+ | 56 | 51 | 65 | 35 | 35 |
#3 Amazon Easy Ship Weight Handling Fee in India
When you use Easy Ship or Fulfillment by Amazon (FBA), Amazon will deliver your products to your customers, but it’ll charge you a fee. However, if you choose to self-ship a product, you’ll have to bear the cost of shipping and deliver the product through your own delivery agents or third party courier service.
The total shipping fees will be equal to the fees based on the weight of the item.
The weight of the item determines the price of Amazon rapid ship. The greater of the actual weight or the volumetric weight is used to calculate it. Weights are categorized into three categories for shipping:
- Standard size item
- Heavy and bulky items
Shipping charges are charged also depending upon Local, Regional and National shipment.
Here are Important Size Guidelines on Easy Ship Weight:
- Your products will either be categorised as standard or heavy bulky.
- Your Amazon shipping fees will be computed on actual or volumetric weight, whichever is higher.
- Volumetric weight is calculated as Volumetric Weight (kg) = (Length x Breadth x Height)/5000 where length, breadth, and height are in cm.
- The minimum chargeable weight for standard-size items is 500 gms. In case an item exceeds 500 gms, the fees you’ll be charged will be in increments of 500 gms.
- An item is considered heavy and bulky if it meets at least one of the following conditions:
- The item belongs to a category typically considered large or heavy, including home appliances, electronics, fitness equipment, furniture, storage, etc.
- The packaged item weighs more than 22.5 kgs.
- Any one of the three package dimensions (length, breadth, and height) exceeds 72 inches (or 183 cm).
- The girth is greater than 118 inches (or 300 cm).
- The item consists of multiple boxes and requires professional installation.
Other Types of Amazon Fees
Though most Amazon orders will be subject to the above three fees, you may be charged additional fees based on the fulfillment channel, program, or service you choose. Each fulfillment channel has different fees and certain costs associated with it, which you’ll have to bear when you use it. Each of these fulfillment channels also offers different benefits and that’s why most sellers use a mix of different channels. Some fees associated with fulfillment channels include the following:
- Pick and Pack Fee (FBA Only): You’ll be charged Rs. 14 per unit for standard items and Rs. 26 per unit for oversized, heavy, and bulky items.
- Storage Fees (FBA Only): If you store your products in the Amazon fulfillment center, you’ll be charged Rs. 45 per cubic foot per month.
- FBA Removal Fees (FBA Only): If you want to remove your products from the Amazon fulfillment center, you’ll have to pay Rs. 10 for standard shipping and Rs. 30 for expedited shipping of standard-size items. For heavy and bulky items, you’ll have to pay Rs. 100 for standard and expedited shipping.
How to Calculate Profitability on Amazon?
Follow the steps given below to calculate profitability on Amazon.
- Step 1: Start by calculating the applicable referral fees.
- Step 2: Find out the applicable closing fees.
- Step 3: Next, calculate the applicable shipping fees. However, if you’re using self-ship, you’ll have to check the cost of shipping.
- Step 4: Calculate the total fees you’ll be charged. You can do so by summing up referral fees, closing fees, shipping fees, and any other fees if applicable.
- Step 5: Once you’ve calculated the total fees, you can calculate your profits by deducting the cost of your products and total fees from your product’s selling price.
Conclusion
As a result of its enormous popularity and well-deserved reputation for putting consumers first, Amazon is a highly promising marketplace to use. The profit or loss on any one item could be razor-thin, therefore it’s imperative that you are aware of all the costs involved with selling on Amazon. With this knowledge in mind, you’ll be able to spot worthwhile products and flourish in this massive, continually growing sector.
