Amazon Seller Fees in 2026: Every Charge Explained (With Real Math)

Referral fee, closing fee, weight handling, GST on fees, TCS, TDS — Amazon's deductions confuse every new seller. Here's the full 2026 fee structure for India, with a worked example.

By Autobac Team — Editorial Team · August 17, 2026

Every new Amazon seller has the same moment: the first settlement arrives and it's much smaller than expected. Nothing is wrong — you just hadn't met the full fee structure yet. Here is every charge Amazon India applies in 2026, what it costs, and the math on a real product.

The Four Deductions on Every Order

1. Referral Fee (Commission)

Amazon's commission on the sale. Since the March 2026 rate card, products priced ₹1,000 or below attract 0% referral fee across 1,800+ consumer categories. Above ₹1,000, category-specific slabs apply to the full selling price — typically anywhere from 2% to 20%+ depending on the sub-category (power banks run ~20.5%, many home categories sit near 10-12%).

The exact sub-category rate matters enormously, which is why guessing "about 15%" is how sellers lose money.

2. Closing Fee (Fixed Fee)

A flat per-unit fee banded by price. On Easy Ship in 2026:

FBA closing fees run higher on low-price bands (₹25/₹24/₹28/₹50/₹60), and Self Ship higher still — Amazon's structure nudges each price band toward a fulfilment method.

3. Shipping / Weight-Handling Fee

For standard-size Easy Ship items, 2026 rates are flat slabs by weight and your STEP seller level — the same fee for local, regional, or national delivery. At the Standard STEP level: roughly ₹55 for the first 500g, ₹75 up to 1kg, ₹112 up to 2kg (all excluding GST). Better STEP levels (Advanced/Premium) pay slightly less; Basic pays slightly more. Products priced under ₹300 get ₹10 off weight handling.

Amazon charges on actual or volumetric weight (L×B×H ÷ 5000), whichever is higher — a light but bulky product ships at its volumetric weight. Heavy & Bulky items (over 22.5 kg, oversized, or in specific categories) still use zone-based rates with a 12 kg minimum.

FBA replaces this with a pick-pack-and-ship fulfilment fee banded by weight, plus monthly storage charges.

4. GST on Fees — 18%

Amazon charges 18% GST on all the fees above. If you're GST-registered (which marketplace sellers must be), this is input tax credit — claim it in your returns and it offsets GST you owe on sales. Sellers who don't claim it are donating margin.

TCS and TDS: Deducted, But Not Lost

Two more lines shrink your settlement:

• TCS 0.5% (GST section 52) on net taxable sales — appears as credit against your GSTIN, claimable in your GST filing.
• TDS 0.1% (income-tax section 194-O) on gross sales — adjustable against your income tax.

Both are advance taxes, not fees. File properly and you recover them.

Worked Example: ₹799 Product, Easy Ship

Say you sell a kitchen product at ₹799 (600g, standard size, Standard STEP level):

From that ~₹670 you still pay product cost, packaging, and ads — which is why a ₹799 product with ₹400 landed cost is far tighter than it first looks.

Fees Change With Your Choices

The same product's fee bill shifts with decisions you control:

• Price band: pricing at ₹999 vs ₹1,049 can mean 0% vs full referral slab on the whole amount.
• Fulfilment: FBA costs more per order but wins the Prime badge and often more sales; Easy Ship is the balanced default; Self Ship saves Amazon fees but you pay your own courier.
• Packaging: shaving volumetric weight below a slab boundary saves on every single order.
• Returns: refund administration fees and lost shipping make return rate a silent fee multiplier.

Stop Estimating — Calculate

All of these rates are already loaded into our free Amazon fee calculator — exact 2026 referral slabs for 228 sub-categories, closing fees, Easy Ship STEP slabs, FBA, storage, returns, TCS and TDS. Enter your price and cost, and see your real per-unit profit, margin, and break-even price in seconds. If you also sell on Flipkart or Meesho, the same toolkit covers all major marketplaces.

And if the math says your margins need professional help — pricing, listings, and ad management — that's exactly what our e-commerce services do for Indian sellers.

_Fee figures reflect Amazon India's published rate cards as of the 16 March 2026 revision (including June 2026 updates). Amazon revises rates periodically — always verify your category in Seller Central._