This is essentially Amazon's "commission" for allowing you to sell on their platform. It is calculated as a percentage of your total sales price (including shipping charges if any). The percentage varies significantly depending on the category your product falls under (e.g., Electronics might be 8%, while Fashion can be 15% or higher).

In addition to the referral commission, Amazon charges a flat fixed closing fee on every item sold. This fee is tiered based on the price of your product. For example, items sold under ₹250 have a lower closing fee compared to items sold above ₹1000.

If you use Fulfillment by Amazon (FBA), Amazon picks, packs, and ships the product to the customer. The weight handling fee covers the delivery cost and is calculated based on the item's volumetric or dead weight (whichever is higher) and the distance (Local, Zonal, or National). Our calculator estimates standard National shipping for conservative planning.

Under Indian taxation laws, Amazon's seller services are considered a digital service. Therefore, an 18% Goods and Services Tax (GST) is levied on the total sum of the Referral Fee, Closing Fee, and Fulfillment Fees. Sellers can claim Input Tax Credit (ITC) on this GST during their filings.