Referral Fee
A referral fee is a commission that Amazon charges on each item sold. It is calculated as a percentage of the product's sale price (including product price and shipping charged to customer), and varies by product category.
Fee for Selling on Amazon.in
Understand how Amazon.in charges you so that you can price your products effectively and maximize profits.
Closing Fee
A closing fee is a fixed fee charged per unit sold. The exact fee depends on the price range of the product and the category. This fee covers marketplace operations like order processing and customer support.
Shipping Fee
Shipping fees depend on the fulfillment option you choose (FBA, Easy Ship or Self Ship), the product weight/size and the shipping distance (local, regional or national).
FBA vs Easy Ship vs Self Ship
The following table summarizes how key fees and responsibilities differ across Amazon's main fulfillment options. Values are illustrative based on the beginner guide; always check Seller Central for latest rates.
| Feature / Fee Type | Fulfillment by Amazon (FBA) | Easy Ship | Self Ship |
|---|---|---|---|
| Who packs and ships? | Amazon stores, packs and ships your products. | You pack the product; Amazon's delivery partner picks up and delivers. | You pack and ship the product directly to the customer. |
| Storage Fees | Charged for storing inventory in Amazon's fulfillment centers based on volume and time. | No Amazon storage fee (you store items). | No Amazon storage fee (you store items). |
| Shipping Fee | FBA fulfillment fee (includes pick, pack and shipping) based on weight and distance. Often lower for Prime-eligible items due to Amazon-negotiated rates. | Easy Ship fee based on weight and distance; Amazon's logistics network handles delivery. | You pay your chosen courier. No Amazon shipping fee, but you bear full logistics cost and coordination. |
| Prime Eligibility | Products are generally Prime-eligible, offering fast and free delivery benefits to customers. | Can be Prime-eligible in select cases based on program rules and performance. | Not typically Prime-eligible. |
| Returns Management | Amazon handles customer returns and customer service for FBA orders. | Amazon manages pickup and return logistics; you inspect returned items. | You manage returns and customer service directly. |
| Packing Material | Amazon packing standards are used within fulfillment centers. | You are responsible for proper packing as per Amazon guidelines. | You decide packing, but must comply with basic packaging and labeling standards. |
| Ideal For | High-volume sellers wanting nationwide reach, Prime benefits and minimal operational overhead. | Sellers who can pack orders but prefer Amazon-managed shipping. | Sellers who already have their own logistics setup or serve limited regions. |
How Fees Impact Your Pricing
When deciding the selling price of your product on Amazon.in, consider all applicable fees along with your cost price, taxes and desired profit margin.
- Start with your product cost and GST.
- Add estimated referral fee and closing fee.
- Include shipping or fulfillment fee.
- Factor in discounts or offers you plan to run.
Tip for New Sellers
Use Amazon's fee calculators and reports in Seller Central to estimate your net proceeds per product. This will help you select the right fulfillment mode (FBA, Easy Ship or Self Ship) and stay competitive while remaining profitable.
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