Are you planning to sell products on Amazon India but are confused about referral fees, closing fees, shipping charges and your actual profit?
Or are you already selling on Amazon but noticing that your payouts are lower than expected?
Understanding Amazon seller fees in India in 2026 is essential before deciding product prices, advertising budgets and fulfillment methods.
Amazon India introduced significant seller fee changes during 2026, including expanded zero referral fees for eligible products priced up to ₹1,000 and revised closing fees effective September 7, 2026.
In this guide, SellerPartnerr, by Avyan Ventures, explains the latest Amazon India seller fee structure, how each charge works, and how to estimate product profitability.
Whether you're a new seller or an established brand, this article will help you make better pricing and marketplace decisions.
What Are Amazon Seller Fees?
Amazon seller fees are the charges sellers pay for using Amazon.in's marketplace and related services.
These fees depend on your product category, selling price, fulfillment method, shipment characteristics and optional services.
Amazon India's general selling fee structure includes:
- Referral fee: A category-based percentage of the applicable selling amount.
- Closing fee: A fee determined by the price band, fulfillment channel and applicable category grouping.
- Shipping or weight-handling fee: Charges for delivery through Amazon-supported fulfillment services.
- Other applicable fees: Such as FBA pick-and-pack, storage, advertising or subscribed programs.
Amazon's general pricing formula is:
Total Amazon selling fees = Referral fee + Closing fee + Shipping fee + Other applicable fees
However, sellers should also consider GST on Amazon service fees and their own business costs when estimating cash flow and profitability.
Official source: Amazon India Seller Fees and Pricing
What's New in Amazon Seller Fees in 2026?
Amazon India announced two important fee changes during 2026.
1. Zero Referral Fees Expanded on March 16, 2026
Amazon expanded its zero-referral-fee coverage to more than 12.5 crore products across over 1,800 categories.
The expansion covers many eligible products priced up to ₹1,000.
Examples of categories included in the announcement were:
- Apparel and footwear
- Fashion jewellery
- Grocery
- Home décor and furnishings
- Beauty products
- Toys
- Kitchen products
- Automotive products
- Pet products
Amazon also announced reductions in Easy Ship fees for qualifying products priced under ₹300.
Important: Zero referral fee does not mean zero total Amazon fees. Closing fees, fulfillment charges and other applicable costs can still apply.
Not every product is eligible, even when priced below ₹1,000.
2. Closing Fee Increases Effective September 7, 2026
Amazon subsequently revised closing fees in response to increased logistics costs.
The changes include:
- ₹1 increase on applicable FC, Easy Ship and Seller Flex closing fees for items priced up to ₹500.
- ₹3 increase on applicable FC, Easy Ship and Seller Flex closing fees for items priced above ₹500.
The amount payable still depends on the product price, applicable group and fulfillment method.
Sellers should use the current fee schedule rather than outdated charts or screenshots.
1. Amazon Referral Fees in India 2026
A referral fee is the category-based commission Amazon charges when an item is sold.
The percentage depends on the fee category and, for many categories, the item's price band.
The basic formula is:
Referral fee = Applicable referral-fee base × Referral fee percentage
For a simple sale where the item price is the entire referral-fee base:
Referral fee = Item price × Referral fee percentage
Amazon's fee schedule specifies that referral fees may be calculated on the total sales price, including relevant shipping and gift-wrap charges, excluding taxes calculated through Amazon's tax calculation services.
Therefore, a seller should not automatically assume that the displayed item price is the full referral-fee base for every order.
Selected Amazon India Referral Fee Rates
| Product fee category | Price up to ₹1,000 | Price above ₹1,000 |
|---|---|---|
| Grocery — Dried fruits and nuts | 0% | 9% |
| Grocery — Herbs and Spices | 0% | 8% |
| Grocery — Beverages | 0% | 10% |
| Automotive — Helmets & Riding Gloves | 0% | 8.5% |
| Power Banks and Chargers | 0% | 20.5% |
| Cables and Adapters — Electronics, PC and Wireless | 0% | 20% |
These are selected examples, not a complete category rate card. Other categories may have different percentage slabs or thresholds.
Referral Fee Calculation Example
Suppose you're selling dried fruits on Amazon India.
Scenario A: Selling price ₹750
- Referral fee rate: 0%
- Referral fee: ₹750 × 0%
- Referral fee = ₹0
Scenario B: Selling price ₹1,200
- Referral fee rate: 9%
- Referral fee: ₹1,200 × 9%
- Referral fee = ₹108
These examples assume no other amount is included in the referral-fee base.
The difference demonstrates why marketplace pricing and fee-category classification are important.
However, sellers should not reduce prices solely to reach a lower referral-fee slab without reviewing demand, margins and other costs.
2. Amazon Closing Fees in India 2026
A closing fee is charged when an eligible item is sold.
Unlike referral fees, which are usually expressed as percentages, closing fees are generally fixed amounts determined by the applicable rate-card slab.
They can vary by:
- Product selling price
- Fulfillment channel
- Applicable category group
- Amazon's current fee schedule
Amazon Closing Fee Examples
Amazon's published pricing page provides examples such as:
| Fulfillment method | Product example | Price | Published closing fee example |
|---|---|---|---|
| FBA / FC | Beverage | ₹249 | ₹27 |
| FBA / FC | Apparel shorts | ₹450 | ₹15 |
| Easy Ship | Sandals | ₹299 | ₹2 |
| Easy Ship | Sandals | ₹450 | ₹23 |
| Self-Ship | Facewash | ₹299 | ₹20 |
| Self-Ship | Apparel shirt | ₹499 | ₹26 |
| Seller Flex | Baby diapers | ₹299 | ₹7 |
These are examples from Amazon's published pricing explainer, not universal closing fees for all products in those price bands.
For an actual ASIN, check the latest applicable rates in Seller Central.
Why Closing Fees Matter
Consider two products sold at the same price.
If they belong to different closing-fee groups, their total Amazon charges can differ.
That means two products with the same selling price and referral percentage may still have different margins.
This is one reason sellers should calculate profitability at the SKU or ASIN level rather than apply a single marketplace commission percentage to an entire catalogue.
3. Amazon Shipping and Weight-Handling Fees
Shipping is another significant part of Amazon selling costs.
Amazon's published pricing page lists weight-handling fees starting from ₹37, although the actual charge varies.
Relevant factors include:
- Product weight
- Packaging dimensions
- Volumetric weight where applicable
- Distance and shipping region
- Product size classification
- Fulfillment method
- Applicable Amazon rate card
Easy Ship Shipping Charges
Under Easy Ship, the seller generally stores and packs inventory at their own premises.
Amazon handles pickup and delivery for eligible orders.
Amazon's pricing examples include:
| Shipment example | Published shipping charge |
|---|---|
| Headphones, 350 g, Easy Ship | ₹55 |
| Electronic item, 3.5 kg, Easy Ship | ₹180 |
These are Amazon's published examples for the specified shipments. They should not be treated as guaranteed charges for every product of the same weight.
FBA Shipping Charges
Under Fulfillment by Amazon, sellers send eligible stock to Amazon's fulfillment network.
Amazon handles storage, picking, packing and customer delivery.
Amazon provides an example of an approximately 700 g book delivered regionally through FC with a weight-handling fee of ₹54.
Actual FBA shipping charges depend on the shipment and rate card.
Self-Ship Delivery Charges
For Self-Ship orders, the seller arranges delivery using an eligible courier or logistics provider.
The seller generally bears the applicable courier charges directly.
Although Amazon's weight-handling charge may not apply in the same way, the seller must still account for actual delivery expenses, applicable closing fees and operational costs.
4. Amazon FBA Charges in India 2026
Fulfillment by Amazon can simplify warehousing and order processing, but sellers must evaluate its additional charges.
Amazon's pricing page lists the following FBA fees.
| FBA fee | Published charge |
|---|---|
| Standard pick-and-pack, up to 1 kg | ₹17 per unit |
| Standard pick-and-pack, each additional kg up to 5 kg | ₹5 per additional kg |
| Standard pick-and-pack, each additional 5 kg thereafter | ₹2 |
| Heavy and bulky pick-and-pack | ₹26 per unit |
| Storage | ₹50 per cubic foot per month |
| Standard-size removal — standard shipping | ₹10 per unit |
| Standard-size removal — expedited shipping | ₹30 per unit |
Fees exclude GST. Additional conditions and charges may apply.
Is Amazon FBA Worth It?
FBA may suit products with consistent demand and manageable storage requirements.
Potential advantages include Amazon-managed fulfillment and reduced daily dispatch workload.
However, sellers should calculate:
- Inbound shipment costs
- Storage expenses
- Pick-and-pack charges
- Weight-handling fees
- Inventory ageing
- Removal costs
- Returns and other applicable charges
FBA is not automatically the cheapest fulfillment option.
The best choice depends on product size, selling price, order volume, geographic demand and operational capacity.
5. Amazon FBA vs Easy Ship vs Self-Ship
Choosing the correct fulfillment method is important for product profitability.
| Factor | FBA | Easy Ship | Self-Ship |
|---|---|---|---|
| Inventory storage | Amazon | Seller | Seller |
| Packing | Amazon | Seller | Seller |
| Customer delivery | Amazon | Amazon | Seller's logistics provider |
| Amazon weight-handling charges | Applicable | Applicable | Generally not charged as Amazon delivery |
| Additional FBA storage costs | Applicable | Not applicable | Not applicable |
| Seller operational responsibility | Lower for order fulfillment | Moderate | Higher |
| Cost suitability | Depends on sales and inventory | Depends on pickup/delivery needs | Depends on courier contracts and execution |
A seller should compare the complete cost of each method for the same product rather than choose based only on the lowest closing fee.
6. How to Calculate Amazon Seller Profit in India
Calculating product profitability requires more than subtracting Amazon's referral fee.
You must also include sourcing, fulfillment, advertising, packaging, returns and applicable taxes.
A useful preliminary cash calculation is:
Estimated cash balance = Selling price − Product cost − Packaging − Referral fee − Closing fee − Shipping fee − Other Amazon fees − GST on Amazon fees − Advertising cost
This is a preliminary cash calculation, not a final accounting profit formula.
For a GST-registered business, proper profitability analysis must separately reconcile output GST, recoverable input GST, tax costs, refunds, returns, overheads and other expenses.
Example: Product Selling at ₹799
Suppose a seller offers an eligible dried-fruit product at ₹799.
For this example, we use the verified 0% referral rate applicable to that fee category at the stated price. The closing, shipping, sourcing and advertising amounts below are hypothetical assumptions, not Amazon quotations.
| Particulars | Amount |
|---|---|
| Customer selling price | ₹799.00 |
| Referral fee (0%) | ₹0.00 |
| Assumed closing fee | ₹48.00 |
| Assumed shipping fee | ₹55.00 |
| GST on modeled Amazon fees (18%) | ₹18.54 |
| Product sourcing cost | ₹300.00 |
| Packaging | ₹20.00 |
| Allocated advertising cost | ₹60.00 |
| Estimated cash balance | ₹297.46 |
Indicative cash-balance percentage:
₹297.46 ÷ ₹799 × 100 = 37.23%
This example excludes product-level GST reconciliation, recoverable credits, returns, refund adjustments and fixed overheads.
Therefore, the ₹297.46 figure must not be interpreted as final net profit.
Why This Calculation Matters
A seller may generate substantial revenue but retain very little after fees and expenses.
To make reliable pricing decisions, sellers should calculate:
- Gross product margin
- Contribution margin per order
- Advertising cost per order
- Return-adjusted margin
- Total business profitability
A profitable-looking SKU can become unattractive after accounting for returns, discounts, storage charges and advertising.
7. GST on Amazon Seller Fees
Amazon's published India fee schedule states that 18% GST is applied to the applicable Amazon service fees displayed before tax.
For example:
If referral, closing and shipping fees total ₹100:
GST on those Amazon fees = ₹18
Total fee invoice amount = ₹118
However, this GST should not automatically be treated as a permanent business expense.
Eligible GST-registered sellers may be able to claim input tax credit, subject to applicable requirements.
Separately, GST on the goods sold depends on the product's correct HSN classification, tax rate and transaction treatment.
Amazon's service-fee GST and the GST applicable to your products are different calculations.
For accurate reporting, reconcile Amazon settlement reports and tax invoices with your books, and consult your chartered accountant where necessary.
8. Are There Hidden Charges When Selling on Amazon?
Amazon states that ordinary marketplace listing does not carry a separate listing fee or subscription fee under its published India selling-fee structure.
However, sellers may incur additional costs depending on how they operate.
Examples include:
- Sponsored advertising
- FBA storage and removal
- Returns and refund-related adjustments
- Packaging materials
- Inbound transportation
- Product preparation and labelling
- Software subscriptions
- Account management services
- Optional Amazon programs
- Compliance and certification expenses
Not every item above is an Amazon-imposed fee. Several are independent business expenses that must still be included in profitability analysis.
The important distinction is between marketplace fees, optional services, and your own operating costs.
9. How to Reduce Amazon Seller Costs in 2026
Here are practical ways sellers can improve marketplace unit economics.
1. Verify Zero Referral Fee Eligibility
Review whether each ASIN qualifies for the expanded zero-referral-fee structure.
Don't assume all products below ₹1,000 are eligible.
2. Optimise Packaging Dimensions
Avoid oversized packaging where it unnecessarily increases chargeable shipping weight or handling costs.
Do not compromise product safety or packaging compliance.
3. Compare Fulfillment Methods
Check the estimated cost of FBA, Easy Ship and Self-Ship for the same product.
Evaluate delivery performance and operational capability alongside fees.
4. Improve Advertising Efficiency
Track ACOS, ROAS, TACOS and contribution margin.
Avoid spending more on ads merely to generate higher attributed sales.
5. Reduce Returns
Accurate listings, realistic images, proper product information and quality checks can help reduce avoidable customer dissatisfaction.
6. Monitor Inventory Ageing
Excess FBA inventory can create storage costs and tie up working capital.
Use inventory planning based on demand and replenishment lead times.
7. Review Settlement Reports
Compare estimated fees with actual Amazon charges.
Investigate unexpected differences using the applicable fee schedule and transaction details.
8. Calculate Margins Before Product Launch
Before investing in a new product, evaluate expected selling price, sourcing cost, fulfillment expenses, advertising and likely return costs.
10. How to Check Your Actual Amazon Fees
Instead of relying entirely on generalized charts, use Amazon's official seller tools.
Step 1: Sign in to Amazon Seller Central India.
Step 2: Open Manage All Inventory and locate the relevant SKU or ASIN.
Step 3: Review the estimated fees per unit sold.
Step 4: Check the specific referral-fee category and applicable charges.
Step 5: Use Amazon's Revenue Calculator to compare fulfillment methods and estimated proceeds.
Step 6: Reconcile estimates with your actual settlement and fee invoices after sales occur.
Amazon's calculator produces estimates, and actual transaction costs may differ.
11. How SellerPartnerr Helps Amazon Sellers Improve Profitability
At SellerPartnerr, by Avyan Ventures, we believe that growing sales is only part of building a successful marketplace business.
An Amazon seller should understand how much money remains after the actual costs of acquiring, fulfilling and servicing an order.
Our ecommerce account management approach focuses on operational discipline, advertising efficiency and data-driven decisions.
Our Services Include
- Amazon seller account audits
- Marketplace fee and profitability reviews
- Product listing optimisation
- Amazon PPC campaign management
- Inventory and fulfillment planning
- Product research support
- Catalogue and account health monitoring
- Pricing and competitive analysis
- Performance reporting
- Multi-marketplace growth support
Explore SellerPartnerr Product Radar
Product selection is one of the earliest profitability decisions a seller makes.
Our Product Radar research tool helps sellers explore potential Amazon product opportunities using indicators such as demand, competition, estimated fees and margins.
Explore SellerPartnerr Product Radar →
Product demand indicators, assumed costs and estimated margins are research aids rather than guaranteed outcomes. Always confirm sourcing costs, compliance obligations and fees before investing.
Frequently Asked Questions About Amazon Seller Fees
1. What are Amazon seller fees in India in 2026?
Amazon India generally charges referral fees, closing fees, fulfillment or shipping fees and other applicable charges. The amount depends on the category, price, shipment and fulfillment method.
2. Is Amazon charging zero commission in 2026?
Amazon expanded zero referral fees to many eligible products priced up to ₹1,000 across more than 1,800 categories. This does not eliminate closing, shipping or other applicable fees.
3. What is the Amazon referral fee for products below ₹1,000?
Many eligible categories have a 0% referral fee up to ₹1,000, but not all categories qualify. Sellers must verify their ASIN's specific fee category.
4. What is the Amazon closing fee in India?
Closing fees vary by price band, category grouping and fulfillment channel. Amazon's current published pricing page lists closing fees starting at ₹2.
5. How are Amazon shipping fees calculated?
Shipping or weight-handling fees depend on factors such as fulfillment method, product weight, dimensions, size classification and shipping distance.
6. Is Amazon FBA cheaper than Easy Ship?
Not necessarily. FBA can introduce storage and pick-and-pack charges, while Easy Ship involves seller-side storage and packing. Compare the full costs for your product.
7. Does Amazon charge 18% GST on seller fees?
Amazon's published India pricing page indicates 18% GST applies to its listed service fees. Eligible input tax credit treatment depends on the seller's circumstances and GST rules.
8. Is product listing free on Amazon India?
Amazon states that listing products on Amazon.in is free under its standard published selling structure. Selling, fulfillment and optional service charges can apply.
9. How can I calculate Amazon seller profit?
Start with revenue and deduct marketplace fees, fulfillment costs, product sourcing, packaging, advertising, returns and overheads, applying the appropriate GST accounting treatment.
10. How can I reduce Amazon seller charges?
Verify fee eligibility, optimise packaging, compare fulfillment options, improve advertising efficiency and regularly review transaction charges.
11. What happens if I sell a product for ₹999 instead of ₹1,001?
A lower price may qualify for a different referral-fee slab in some categories, but the change can also affect closing fees, revenue and profit. Check the full fee calculation before changing prices.
12. Can SellerPartnerr help analyse my Amazon selling costs?
Yes. SellerPartnerr offers Amazon account management and ecommerce growth support, including marketplace account audits, advertising management and performance analysis, subject to the agreed scope of service.
Conclusion: Know Your Fees Before You Grow Your Amazon Business
Understanding Amazon seller fees in India in 2026 helps brands make better decisions about pricing, advertising and fulfillment.
The expanded zero-referral-fee program creates opportunities for eligible products, while revised closing fees and shipping expenses make accurate unit economics important.
Don't judge your marketplace business by revenue alone.
Track the actual cost of every sale, review your margins and use reliable data to guide growth decisions.
Are Amazon Fees Eating Into Your Profit?
Stop guessing your Amazon margins. Start making data-driven decisions.
SellerPartnerr helps Indian ecommerce brands audit their accounts, evaluate marketplace costs, optimise advertising and build structured growth strategies.
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SellerPartnerr is an independent ecommerce service provider. Amazon fees and policies may change. All estimates should be verified with Amazon Seller Central and actual financial records. This article is informational and is not tax or financial advice.