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Guide · Amazon India Sellers

Understanding Amazon India Seller Fees: The Complete Guide

Everything behind the numbers in our Profit Calculator: referral fees, closing fees, weight handling, STEP levels, GST, and how to choose between FBA, Easy Ship, Seller Flex, and Self Ship.

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Section 1

How Amazon Fee Calculation Actually Works

Every rupee Amazon takes from a sale falls into one of four buckets: referral fee, closing fee, weight handling fee, and GST on top of all three. Understanding what drives each one helps you read your own calculator results with confidence, and catch pricing mistakes before they eat your margin.

Referral Fee

A percentage of your sale price, and the percentage itself depends on your product's category. Most categories charge 0% below a price threshold (commonly ₹1,000) and a category-specific rate above it.

Closing Fee

A fixed rupee amount charged on every sale, based on your price tier and fulfilment method. Lower-priced items generally pay less.

Weight Handling Fee

What Amazon charges to pick, pack, and ship your order, based on your product's weight and (for FBA) the delivery distance.

GST on Amazon's Fees

Amazon charges 18% GST on top of its own fees (referral + closing + weight handling combined). This is separate from your product's own GST rate, which is deducted from your revenue, not added to your costs.

A quick example: a ₹999 product in a category with 0% referral fee below ₹1,000 pays no referral fee at all. The same product at ₹1,050 could suddenly owe a category-specific percentage on the whole sale. That's the kind of shift that can quietly wipe out a small price increase. Every product's exact numbers depend on its own category, price, weight, and fulfilment method, which is exactly what the calculator works out for you automatically.
Section 2

Amazon's STEP Program: What It Means for Your Fees

Every seller on Amazon.in is automatically enrolled in STEP, a performance-based program with four levels: Basic, Standard, Advanced, and Premium. New sellers start at Standard from day one, and this calculator's numbers reflect that level.

Each quarter, Amazon evaluates sellers (minimum 30 orders and 5 distinct ASINs required to even be evaluated) on customer-facing metrics like cancellation rate, late dispatch rate, and return rate. Based on that performance, you move up, stay put, or move down.

Moving up (Advanced, Premium) reduces your weight handling fees, among other benefits like faster payment disbursement and free account management.

Falling to Basic increases weight handling fees compared to Standard.

Because Amazon adjusts exact metrics and thresholds periodically, check your live STEP Dashboard in Seller Central (Performance → STEP) for your current level and the specific metrics affecting you, rather than relying on any fixed list.
Section 3

Finding Your Product's GST Rate

Your product's GST rate depends on its HSN (Harmonized System of Nomenclature) code, not on Amazon or your fulfilment method. Common slabs are 0%, 5%, 18%, and 40%.

Find yours by searching your product's HSN code on gst.gov.in, or confirm with your CA if you're unsure which HSN applies to your product.

This is separate from GST on Amazon's own fees (a flat 18%, always), which is already built into every calculation.

Section 4

The Four Fulfilment Methods

Prime Eligible

FBA (Fulfilment by Amazon)

Amazon stores, packs, and ships your orders, and handles customer service. Automatically Prime-eligible. Requires GST registration in the state where your inventory is stored: you'll add Amazon's fulfilment centre as an Additional Place of Business (APOB) under your existing GSTIN. If you don't have a physical presence in that state, a Virtual Place of Business (VPOB) service lets you register there without one. Typical documents: your GST login, Amazon's NOC for the fulfilment centre, and the FC's rent agreement and electricity bill.

Easy Ship

You store and pack, Amazon picks up and delivers. No warehouse registration needed since inventory stays with you. Prime eligibility is available through a separate opt-in called Easy Ship Prime (see below), not automatic.

Prime Eligible

Seller Flex

You run your own warehouse; Amazon handles pickup and last-mile delivery. Invite-only, there's no open application. Amazon considers factors like account health, sales history, and warehouse readiness (trained staff, barcode scanning equipment) before extending an invite. If you believe you qualify, you can express interest through Seller Support (Help → Get Support → Selling on Amazon → Fulfillment & Delivery). Prime-eligible once enrolled.

Self Ship

You handle storage, packing, and delivery entirely yourself, using your own courier. No Amazon shipping fee, but no Prime badge either, and you bear the full delivery cost and risk.

Section 5

Prime Badge in India: How It Actually Works

FBA and Seller Flex both grant the Prime badge automatically once enrolled. For sellers who want Prime without either, India has its own self-fulfilled routes, found under Seller Central's Shipping Programs settings.

Easy Ship Prime and Local Shops - Prime are the actual India-specific programs for earning Prime on self-fulfilled orders. Both require opting in through Seller Central and meeting Amazon's delivery performance standards to maintain eligibility.

Note: the globally-documented "Seller Fulfilled Prime" (SFP) program requires a US shipping address and isn't available to Indian sellers. Don't confuse the two if you see SFP mentioned in non-India-specific guides.
Section 6

What This Calculator Doesn't Include

Two fee types exist outside a single per-unit sale, and neither is included in the calculator's numbers:

Long-Term Storage Fees

An additional storage charge Amazon applies to inventory that's sat in a fulfilment centre for an extended period (typically 365+ days) without selling. This depends on how long a unit sits in storage, not on any individual sale, so it's tracked separately in your Inventory Age report on Seller Central.

FC Removal Fees

A one-time charge that applies only if you choose to have Amazon return or dispose of unsold inventory. Since it's tied to a removal decision rather than a transaction, it sits outside a per-unit profit calculation.

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