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Amazon India Seller Fees Explained: Referral, Closing Fee and GST

Guide · 13 November 2026 · 6 min read

You sell a product at ₹499. Amazon's fees, shipping and GST take ₹135 before your product cost is even counted. You expected that money to reach you.

Most sellers count two charges. There are five. By the end of this guide you will know what each one is, how it behaves at different price points, and how to price around it. It is written for anyone doing up to ₹5 lakh a month on Amazon India.

Amazon seller fees in India: the five charges on every order

Every order carries the same five charges. Some are percentages, some are flat, and one sits on top of the others.

The first two are the ones sellers underestimate. The others tend to be noticed only when the payout arrives.

Referral fee — the percentage that changes with price

The referral fee is Amazon's commission. It is calculated on the total selling price, and the percentage depends on your category.

Fees change from time to time. Treat every figure in this article as a guide, and confirm current rates on Amazon India's fees and pricing page before you fix a price.

How the ₹1,000 band works

In apparel and innerwear, the referral fee is 0% up to ₹1,000. Above ₹1,000 it rises to roughly 18–19%.

So the same product can be charged 0% at ₹999 and 18% at ₹1,001. On a ₹1,001 item that is about ₹180 gone for a ₹2 price rise.

This is the most misunderstood rule for apparel sellers. If your product sits near ₹1,000, check which side of the line it falls on before you print the MRP.

What different categories pay

Outside apparel, most categories pay between 8% and 24%. Electronics and appliances usually sit higher, home and kitchen mid-range, books and media lower. Each category has its own schedule, and some change rate by price band the way apparel does.

Take these as illustrations, not a full list. Check your own category in Seller Central.

The mistake: assuming 0% means free

A referral fee of zero does not make the order free. The closing fee, shipping and GST on fees still apply, and so does GST on the sale.

On a ₹499 innerwear set the referral fee is nil, and Amazon still takes a visible slice.

Closing fee — the flat charge nobody notices

The closing fee is a flat amount on every order. It does not care about your margin or your category. It only looks at your price band and how the order is fulfilled.

Easy Ship vs Self Ship vs FBA

Item priceEasy ShipSelf Ship
₹0–300₹2₹20
₹301–500₹23₹26
₹501–1,000₹48₹51
Above ₹1,000₹79₹101

FBA closing fees are roughly ₹19–₹30 in the ₹301–1,000 range, depending on the fee group.

A new seller should start with Easy Ship. Amazon handles pickup and delivery, you do not need to send stock to a warehouse, and the costs are easier to predict.

Why ₹499 and ₹501 are not the same price

At ₹499 the closing fee on Easy Ship is ₹23. At ₹501 it is ₹48. A ₹2 price increase costs you ₹25, and about ₹29.50 once GST is added.

So price just below the band, not just above your cost. The same jump happens at ₹300 and ₹1,000.

GST on fees — 18% on top of everything

Amazon charges 18% GST on every fee it bills you: referral, closing, shipping and storage. It is added on top of the fee, not on the product price. This is a different tax from the GST on your product.

On a ₹23 closing fee, the GST is ₹4.14. That is why the example below shows ₹27.14.

If you are GST-registered, you can claim this back as input credit. If you are not, you absorb it as a cost.

Selling on your own site too? Read up on payment gateway charges, which add their own layer.

GST on the sale — 5% or 18%

For apparel, GST on the sale is 5% up to ₹1,000 and 18% above it. Other categories vary.

Rates and slabs change with government notifications. Confirm with your CA before pricing.

A worked example: the ₹499 innerwear set

Here is one order, sold at ₹499 through Easy Ship.

LineAmount
Selling price₹499
Product cost (COGS)−₹135
Referral fee (0% under ₹1,000)₹0
Closing fee ₹23 + 18% GST−₹27.14
Shipping (Easy Ship)−₹60
Packaging−₹12
Ads per order−₹70
GST on sale (5%)−₹24.95
Return/RTO buffer (8% of unit cost + two-way freight)−₹22.57
Net profit₹147.34 (29.5%)

The seller keeps ₹147.34 per order, a 29.5% margin, after every charge. The line that hurts most if you get it wrong is returns, because a bad month of RTOs can eat far more than the buffer.

Five mistakes that quietly kill margin

  1. Pricing at ₹501 instead of ₹499. A ₹2 rise adds ₹25 to the closing fee before GST.
  2. Leaving returns out of the calculation. Every returned order still costs you shipping and often the product. Work out what returns cost you before you trust any margin figure.
  3. Treating GST on the sale as a cost instead of a pass-through. You collect it from the buyer and pass it on. The table above deducts it only to show the cash actually left in hand.
  4. Never opening the Fee Preview in Seller Central. It shows Amazon's own estimate of fees for your price and category. It takes two minutes.
  5. Forgetting ad spend when calculating unit economics. If ads bring the order, ads are part of the cost of that order.

Check your own numbers in 30 seconds

Doing this by hand for every product is slow and easy to get wrong. The free Amazon India profit calculator does it live.

Enter your selling price, product cost, referral fee, closing fee, shipping, packaging, ad spend per order and return rate. It returns profit per order, margin and break-even price.

Frequently asked questions

Is the referral fee the same for every category?

No. It ranges from about 8% to 24% depending on category, and some categories, like apparel, change rate by price band. It is calculated on the total selling price. Check your own category in Seller Central, because Amazon revises these rates from time to time.

What exactly is the closing fee?

It is a flat fee on every order, based on your price band and fulfilment method. On Easy Ship it runs from ₹2 for items up to ₹300 to ₹79 above ₹1,000. It applies even when the referral fee is zero, and GST is added on top.

Do I have to pay GST on Amazon's fees?

Yes. Amazon charges 18% GST on every fee it bills you, added on top of the fee. A GST-registered seller can usually claim it back as input credit. An unregistered seller absorbs it as a cost. Confirm your position with your CA.

Can I avoid the closing fee entirely?

No. It applies to every order. Only the amount changes with price band and fulfilment method. You can reduce its impact by pricing just below a band, such as ₹499 instead of ₹501, but you cannot remove it.

Why is my payout lower than my own calculation?

Usually because the calculation counted two charges instead of five. Shipping, GST on fees and GST on the sale are easy to miss, and returns can reverse part of a sale. Open the Fee Preview and compare it with your numbers line by line.

Is FBA cheaper than Easy Ship for a small seller?

Not necessarily. The FBA closing fee looks lower, roughly ₹19–₹30 between ₹301 and ₹1,000, but you also pay for storage and must send stock in. For a new seller, Easy Ship is simpler to start with and easier to predict.

The bottom line

Know all five charges, not just two. Price against the band, not only against your cost. Open the Fee Preview before you commit to a price.

Fees and rates change, so check current figures before you rely on any number here. If you also export, read about selling on Amazon US.

Amazon is a trademark of Amazon.com Inc. Seller Success Lab is not affiliated with Amazon.

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