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Amazon Seller Fees India: Every Charge on Your Order, Explained

✓ 4 official and published sources✓ Written for Indian sellers and small businesses

Amazon seller fees in India have three main parts: a referral fee worked out as a percentage of the selling price, a flat closing fee set by price band, and a weight handling fee for delivery. Using FBA adds pick and pack and storage fees. Amazon adds 18% GST on every fee, which a registered seller can claim back.

Key points
  • As on 12 Nov 2026, Amazon's fee page shows a 0% referral fee for items priced up to Rs 1,000 in most categories, and a category rate above that.
  • Amazon raised closing fees from 7 September 2026: Rs 1 more for items up to Rs 500 and Rs 3 more above Rs 500.
  • FBA pick and pack is Rs 17 a unit for a standard item up to 1 kg, and storage is Rs 50 per cubic foot a month, as on 12 Nov 2026.
  • All fees are shown before GST. Amazon adds 18%, and that GST is input tax credit for you.
  • TCS of 0.5% and TDS of 0.1% also come off your payout, but they are taxes in your name, not fees.
In this guide
  1. What does Amazon charge you on each order?
  2. Why does the Rs 1,000 line matter so much?
  3. Which way of shipping should you pick?
  4. A worked example
  5. How to read your own fees, step by step
  6. The mistake people usually make

What does Amazon charge you on each order?

Open your settlement and you will see several lines taken out of each order. Here is what each one is and what Amazon's own fee page showed on 12 Nov 2026. Amazon calls these figures indicative, so treat your Seller Central account as the final word.

FeeHow it is worked outWhat the page shows, as on 12 Nov 2026
Referral feeA percentage of the total selling price, set by categoryStarts at 0%. Sarees and dress materials: 0% up to Rs 1,000, 15% above. Ethnic wear: 0% up to Rs 1,000, 16.5% above. Mobile phones: 5% at any price
Closing feeA flat amount per order, by price band, category group and channelStarts at Rs 2. Through FBA, Rs 14 to Rs 27 for items up to Rs 500, depending on the category group
Weight handling feeParcel weight and distance: local, regional or nationalStarts at Rs 37 per item. None on Self Ship, where you pay your own courier
Pick and pack (FBA only)Per unit soldRs 17 for a standard item up to 1 kg, Rs 5 for each extra kg up to 5 kg. Rs 26 for heavy and bulky items
Storage (FBA only)Space your stock takes in the warehouseRs 50 per cubic foot per month
Removal (FBA only)Per unit you ask Amazon to send backRs 10 standard shipping or Rs 30 expedited for a standard item. Rs 100 for heavy and bulky

Two more rules from the same page. The weight that is charged is the higher of the real weight and the volumetric weight, which is length times breadth times height in centimetres, divided by 5,000. And a standard item is billed in 500 gram steps, so a parcel of 800 grams pays for 1 kg.

Why does the Rs 1,000 line matter so much?

Look at the saree row again. At Rs 999 the referral fee is nil. At Rs 1,049 it is 15% of the whole price, which is Rs 157.35. A Rs 50 price rise costs you more than three times that in fees.

So if your product sits just above Rs 1,000, test a price at or below it. Many categories on the page follow the same pattern. A few do not: books, beauty and smart watches have their own lower bands, and mobile phones pay 5% from the first rupee. Check your exact category row before you price.

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Which way of shipping should you pick?

  • Fulfilment by Amazon (FBA): Amazon stores, packs and delivers. You pay closing, weight handling, pick and pack and storage fees. The page offers FBA at no extra cost for the first 3 months or 100 units, as on 12 Nov 2026.
  • Easy Ship: you store and pack, Amazon picks up and delivers. You pay closing and weight handling fees.
  • Self Ship: you deliver through your own courier. No weight handling fee from Amazon, but you pay the courier.

Most new sellers start with Easy Ship, because it adds no storage cost. Our guide on how to sell on Amazon India covers the setup. Keep in mind that stock kept in a warehouse in another state can bring a GST registration question with it.

A worked example

Suresh sells a cotton saree for Rs 480 through FBA. We take the GST on the saree as 5% for this example, so the price holds Rs 457.14 of taxable value and Rs 22.86 of GST. The packed saree weighs 700 grams and goes to a buyer in his own region.

LineAmount
Price paid by the buyerRs 480.00
Referral fee, 0% as the price is under Rs 1,000Rs 0.00
Closing fee, FBA, Rs 301 to Rs 500 bandRs 15.00
Weight handling, 700 g regional (Amazon's own example figure)Rs 54.00
Pick and packRs 17.00
GST at 18% on Rs 86 of feesRs 15.48
GST TCS, 0.5% of Rs 457.14Rs 2.29
Income tax TDS, 0.1% of Rs 457.14Rs 0.46
Paid to his bankRs 375.77

The gap is Rs 104.23. Only Rs 86 of it is a true cost. The Rs 15.48 of GST on fees comes back as input tax credit, the TCS comes back through his electronic cash ledger, and the TDS is adjusted in his income tax return. Storage is billed separately each month, so add it on top for slow-moving stock.

The closing fee here uses the figure on the page for sarees in that band. The page does not say clearly whether the band figures already include the September 2026 increase, so confirm the amount on your fee invoice.

How to read your own fees, step by step

  1. Open Amazon's fees and pricing page and find your category in the referral fee list. Note the rate for your price band.
  2. Find which closing fee group your category falls in, for the channel you use.
  3. Weigh and measure the packed product. Take the higher of real and volumetric weight.
  4. Read the weight handling rate for that weight and the distance to most of your buyers.
  5. Add the fees, then add 18% GST on them. Compare your total with Amazon's revenue calculator.
  6. Each month, match the fee invoices against your settlement and your GSTR-2B.

The mistake people usually make

Most sellers treat the whole difference between price and payout as Amazon's cut. In the example that would be Rs 104.23 instead of Rs 86. Across 1,000 orders, that is about Rs 18,000 of GST credit, TCS and TDS that never gets claimed. Our note on claiming ITC on marketplace fees shows how to take the GST back.

The second mistake is filing GSTR-1 on the payout. Your sales return must show what the buyer paid, less returns. Amazon reports those sales and the TCS against your GSTIN in its own return, so a payout-based figure will not match. For the full month-end check, read payment reconciliation for GST.

How AprilTax can help

Fees are only half of the monthly work. AprilTax has a free GSTR-1 tool for online sellers: you upload the sales reports you download from Amazon, and it prepares your GSTR-1 on sales less returns, runs about 30 checks and matches the TCS Amazon reported. You then upload the JSON file on the GST portal yourself.

Frequently asked questions

What are the main Amazon seller fees in India?
Most orders carry a referral fee (a percentage of the selling price by category), a closing fee (a flat amount by price band and channel) and a weight handling fee for delivery. FBA sellers also pay pick and pack, storage and removal fees. Amazon adds 18% GST on all of them.
Is there a zero referral fee on Amazon?
As on 12 Nov 2026, Amazon's fee page shows a 0% referral fee for items priced up to Rs 1,000 in most categories. Some categories, such as books, beauty and mobile phones, have different bands or a flat rate, so check your own category row.
Did Amazon change its closing fees in 2026?
Yes. Amazon's fee page says closing fees went up from 7 September 2026: by Rs 1 for products priced up to Rs 500 and by Rs 3 above Rs 500, across FBA, Easy Ship and Seller Flex. Check the amount on your fee invoice.
Is GST charged on Amazon seller fees?
Yes. Amazon's page says all fees are shown before GST and it adds 18% GST to them. If you are a regular GST registered seller, that GST is input tax credit, provided the fee invoice shows in your GSTR-2B.
Are TCS and TDS part of Amazon's fees?
No. GST TCS (0.5% of net taxable sales) and income tax TDS (0.1% under section 194-O) are taxes collected or deducted in your name. You get TCS back through the electronic cash ledger and TDS in your income tax return.
How is the Amazon shipping fee calculated?
Amazon charges on the higher of actual weight and volumetric weight (length x breadth x height in cm divided by 5,000), and on distance: local, regional or national. Standard items are billed in 500 gram steps. Self Ship sellers pay their own courier instead.
When does Amazon pay sellers?
As on 12 Nov 2026, Amazon's fee page says you become eligible for payment 7 days after the order is delivered, with deposits every 7 days, including Pay on Delivery orders. The page says this applies to new sellers at the Standard level.
Should I file GSTR-1 on my Amazon payout?
No. GSTR-1 shows the value of your sales less returns, not the amount Amazon paid you. Fees, TCS and TDS are dealt with separately: fees through input tax credit, TCS through the cash ledger and TDS in your income tax return.

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Avaneesh Kumar

Founder of AprilTax, building simple tax tools for online sellers.

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