Question 1

What fees does Amazon India charge sellers?

Accepted Answer

Amazon India charges a category-wise referral fee (a % of the item price — 0% for products priced ₹1,000 or below in most categories since March 2026), a fixed closing fee that varies by price band and fulfilment method, weight-handling or FBA fulfilment charges based on the chargeable weight, optional storage fees for FBA, and 18% GST on all of these fees. TDS and TCS are also collected but are recoverable against your tax returns.

Question 2

Is there zero referral fee on Amazon below ₹1,000?

Accepted Answer

Yes. Since Amazon India's fee revision effective 16 March 2026, products priced at or below ₹1,000 attract 0% referral fee across 1,800+ categories. Above ₹1,000 the category-specific slabs apply (roughly 2–38% depending on category). Closing fees, weight-handling or FBA fees and 18% GST on fees still apply, so a sub-₹1,000 sale is not fee-free. This calculator applies the 0% band automatically, and every rate stays editable.

Question 3

How is the referral fee calculated?

Accepted Answer

The referral fee is a percentage of your selling price that depends on the product category and the price band. Since 16 March 2026 it is 0% for items priced up to ₹1,000 in most categories; above that, electronics accessories, apparel, and home products each have different referral rates. This calculator uses editable default rates that you can update to match Amazon's current schedule.

Question 4

What is chargeable weight and why does it matter?

Accepted Answer

Shipping and FBA fees are charged on the higher of the actual (dead) weight and the volumetric weight, which is derived from the package dimensions (L × W × H ÷ 5000). Bulky-but-light items are often billed on volumetric weight, so entering accurate dimensions gives a more realistic fee estimate.

Question 5

Are TDS and TCS a real cost to my business?

Accepted Answer

No. TDS (u/s 194-O) and TCS are deducted or collected on your sales but are adjustable/recoverable against your income tax and GST returns. This tool shows them for cash-flow clarity but excludes them from your net profit figure.

Question 6

How much does a return actually cost an Amazon India seller?

Accepted Answer

A return is rarely 'free'. Use the Returns / RTO tab above to add it up: even when the customer's money is refunded, you still lose the refund administration fee Amazon keeps, the return (reverse logistics) pickup fee, the outbound shipping you already paid, your packaging, and — if the item comes back damaged or unsellable — the full cost of the product.

Question 7

What is the refund administration fee on a return?

Accepted Answer

When you refund a customer, Amazon refunds the referral (commission) fee it charged you — but keeps a refund administration fee equal to the lesser of a flat cap (about ₹100) or 20% of that referral fee. On an RTO (an order that never reached the customer) there is usually no refund admin fee, because the sale was not completed.

Question 8

What is the difference between a customer return and an RTO?

Accepted Answer

A customer return happens after delivery — the buyer receives the item and sends it back, so a refund and refund admin fee apply. An RTO (Return to Origin) is a failed or refused delivery — the courier could not hand it over — so it costs you both shipping legs with no completed sale, but the unit usually comes back resellable.

Amazon Seller Fee Calculator (India)