Amazon Commission Rates for Sellers Explained
Published on December 16, 2025
• 9 min read
When you sell on Amazon, you pay a referral fee for each product sold. This is the main part of Amazon commission rates in India. The fee varies by product category and is calculated as a percentage of the total selling price, including the item price, shipping, and gift wrap (if applicable). The referral fee starts at 2% and can increase depending on the category. Knowing this rate helps you set the right price and plan your profit margin better. In this guide, you will know how much Amazon charges for selling in India.
How Referral Fee is Calculated
Amazon calculates the referral fee using this simple formula:
Referral Fee = Item Price × Referral Fee Percentage
Let’s look at an example.
If you sell a Bluetooth speaker priced at ₹1,200 and the referral fee for the Electronics category is 7%, the fee will be:
₹1,200 × 7% = ₹84
So, Amazon will charge a referral fee of ₹ 84 on this sale.
This makes it easy to estimate your costs before listing a product.
Category-Wise Referral Fees of Some Common Products
| Product Category | Item Price Range (INR) | Referral Fee (%) |
| Automotive Tools & Equipment | Up to ₹300 | 6.5% |
| ₹301–₹500 | 7.5% | |
| Above ₹500 | 8.5% | |
| Automotive Batteries & Air Fresheners | Up to ₹500 | 6.5% |
| ₹501–₹1,000 | 7.5% | |
| Above ₹1,000 | 8.5% | |
| Toys (Balloons, Soft Toys) | — | 11% |
| Books | Up to ₹250 | 3% |
| ₹251–₹500 | 4.5% | |
| ₹501–₹1,000 | 9% | |
| Above ₹1,000 | 13.5% | |
| School Textbook Bundles | Up to ₹250 | 2% |
| ₹251–₹1,000 | 3% | |
| ₹1,001–₹1,500 | 4% | |
| Above ₹1,500 | 4.5% | |
| Clothing (Sweatshirts & Jackets) | Up to ₹500 | 8% |
| ₹501–₹1,000 | 20% | |
| Above ₹1,000 | 24% | |
| Pet Food | Up to ₹300 | 5.5% |
| ₹301–₹1,000 | 11.5% | |
| Above ₹1,000 | 12.5% | |
| Beauty (Hair Care, Bath & Shower) | Up to ₹300 | 7.5% |
| ₹301–₹500 | 5% | |
| Above ₹500 | 8% | |
| Rugs & Doormats | Above ₹1,000 | 9–10.5% |
| Home (Fragrances & Candles) | Up to ₹500 | 7.5% |
| Above ₹500 | 12.5% | |
| Kitchen (Glassware & Ceramics) | Up to ₹300 | 6% |
| ₹301–₹1,000 | 11% | |
| Above ₹1,000 | 12.5% | |
| Bicycles | Up to ₹300 | 11% |
| ₹301–₹500 | 6.5% | |
| ₹501–₹1,000 | 7% | |
| Above ₹1,000 | 6% |
Closing Fee
The closing fee usually starts at ₹5 and increases as the product price goes up. It ensures that Amazon covers transaction and payment processing costs.
How the Closing Fee is Calculated
Amazon calculates the closing fee based on the item price and category.
Total Closing Fee = Fee based on item price and category
Let’s look at some examples to better understand this.
Example 1: FBA Closing Fee
If you sell a book for ₹200 under the Books category (₹0–250 price range),
Closing Fee = ₹12
If you sell a Bluetooth speaker for ₹450 (₹251–500 price range),
Closing Fee = ₹20
Example 2: Easy Ship and Self-Ship Closing Fees
If you sell a book priced at ₹200 using Easy Ship,
Closing Fee = ₹5
If you sell a Bluetooth speaker for ₹450 using Self Ship,
Closing Fee = ₹20
Example 3: Self Ship (Books and Other Categories)
If you sell a book for ₹200 under Self Ship (Books have a special rate for ₹0–300),
Closing Fee = ₹6
If you sell a pair of sandals for ₹200,
Closing Fee = ₹20
Weight Handling Fee
Amazon also charges a Weight Handling Fee, also known as the shipping fee. This fee covers the cost of storing, packing, and delivering your product to the customer.
The starting fee is ₹29 per item and varies based on weight, size, and shipping distance. The farther your product is or the heavier it is, the higher the shipping cost.
Weight Handling Fee Calculation
Amazon calculates the shipping fee based on the product’s weight and the distance between the warehouse and the customer.
Total Shipping Fee = Fee based on item weight and size + Fee based on shipping distance
Here’s how it works for different fulfillment options.
Example 1: FBA Shipping
If an item weighs 700 grams (for example, a book) and is shipped via FBA from Delhi to Chandigarh (regional shipping),
Shipping Fee = ₹40 + ₹17 = ₹57
Example 2: Easy Ship
If an electronic item weighing 3.5 kg is shipped via Easy Ship from Bengaluru to Shillong (national shipping),
Shipping Fee = ₹72 + ₹25 + (₹27 × 3) = ₹178
Example 3: Heavy and Bulky Item
If a chimney weighing 19 kg is shipped within Bengaluru city using Easy Ship,
Shipping Fee = ₹192 + (₹5 × 7) = ₹227
Self-Ship Fee
If you choose to self-ship, Amazon does not charge any shipping fees. You handle the delivery yourself or through a courier partner and pay their charges directly.
Size Guidelines
Amazon uses its size chart to classify products as Standard or Heavy, or Bulky.
An item is considered Heavy and Bulky if it meets one or more of these conditions:
- It is a large item such as a washing machine, TV, treadmill, refrigerator, or furniture.
- The package weight exceeds 22.5 kg.
- The maximum length, width, or height exceeds 183 cm.
- The circumference (Length + 2 × (Width + Height)) is more than 300 cm.
- The product is shipped in multiple boxes or needs carpenter installation.
For regular-sized products, the minimum chargeable weight is 500 grams. For items above that weight, fees increase by 500 grams.
Example:
If you ship an 800-gram package to a regional address using Easy Ship, the shipping fee is ₹68. It includes ₹51 for the first 500 grams and ₹17 for the next 500 grams.
Amazon calculates fees based on whichever is higher — actual weight or volumetric weight.
Volumetric Weight (kg) = (Length × Width × Height) / 5000
(using measurements in centimeters)
Other Important Amazon Fees
Pick and Pack Fee (FBA Only)
The Pick and Pack Fee is charged for each unit sold through Amazon FBA. This fee covers the cost of picking the product from storage, packing it securely, and preparing it for shipment.
- ₹14 per unit for standard-size items
- ₹26 per unit for oversized or heavy and bulky items
Storage Fee (FBA Only)
Amazon charges a monthly storage fee for keeping your products in its fulfillment centers. The rate depends on how much space your inventory takes up.
- ₹45 per cubic foot per month
The longer your inventory remains in storage, the more you’ll pay. Efficient inventory management can help reduce this cost and improve profit margins.
FBA Removal Fee (FBA Only)
If you choose to remove or return your products from Amazon’s fulfillment center, you’ll be charged a removal fee per unit. These charges are exclusive of GST, and an 18% GST is applied on top of the listed fees.
| Measurement | Standard Shipping | Expedited Shipping |
| Standard Size | ₹10 | ₹30 |
| Heavy and Bulky | ₹100 | ₹100 |
- All the above fees are excluding GST. Amazon applies 18% GST on every charge.
- If you join special programs such as Amazon Launchpad or Amazon Business Advisory, you may incur additional service fees.
Calculating Profit for Sellers on Amazon. in
The profit depends on many factors, such as product category, size, weight, and the fulfillment method you choose. Here’s a simple step-by-step way to find it.
Step 1: Calculate the Referral Fee
Check your product’s category and apply the referral fee percentage.
For example, if your item sells for ₹1,000 and the referral fee is 8%, then:
Referral Fee = ₹1,000 × 8% = ₹80
Step 2: Find the Closing Fee
Next, check the applicable closing fee based on the price range and fulfillment type. If your closing fee is ₹20, note that amount for your total cost.
Step 3: Calculate the Shipping Fee
If you use Fulfillment by Amazon (FBA) or Easy Ship, find the weight handling fee for your product. If you self-ship, use your courier partner’s actual delivery cost instead.
Step 4: Add Other Fees (if applicable)
If your product is stored in an Amazon fulfillment center or you use FBA services, include:
- Pick and Pack Fee
- Storage Fee
- FBA Removal Fee (if applicable)
Now, calculate your total Amazon cost.
Total Fee = Referral Fee + Closing Fee + Shipping Fee + Other Fees
Step 5: Calculate Your Profit
Subtract the product cost and Amazon fees from the selling price.
Profit = Item Sale Price – Product Cost – Total Fee
Example Calculation
Let’s say you sell a pair of wireless headphones for ₹1,500.
| Component | Amount (₹) |
| Referral Fee (7%) | 105 |
| Closing Fee | 20 |
| Shipping Fee | 70 |
| Pick & Pack Fee | 14 |
| Total Fee | 209 |
| Product Cost | 800 |
| Profit = 1,500 – 800 – 209 = ₹491 before taxes | |
Amazon Payment Cycle
Amazon ensures timely and secure payments for all your sales. Once your order is delivered, you become eligible to receive payment 7 days after the delivery date. You can easily monitor your balance, settlements, and payment reports in your Amazon Seller Central account.
You may also like to read – An Introduction to Amazon FBA: Fulfillment by Amazon
Simplify Your Amazon Operations with WareIQ
Selling on Amazon can get complex with multiple fees, fulfillment challenges, and constant operational demands. WareIQ helps simplify it all.
WareIQ is a Y-Combinator-backed eCommerce fulfillment platform that enables brands to manage and grow across D2C, marketplaces, quick commerce, and B2B channels.
What WareIQ Offers
Pan-India Fulfillment Network
Operate with confidence using Seller Flex and FAssured-compliant fulfillment centers across 12+ cities. Deliver to over 27,000+ pin codes through our reliable last-mile delivery partners.
Multi-Channel Fulfillment Platform
Integrate seamlessly with leading platforms like Amazon, Flipkart, Nykaa, Shopify, WooCommerce, Magento, and more. Manage orders, inventory, and analytics across all sales channels from one central dashboard.
Inventory LogIQ
Use AI-driven inventory planning to reduce stockouts and automate replenishment. Keep your bestsellers always available.
Smart Returns Management
Our tech-enabled Returns QC Solution helps you capture HD media evidence of damaged or missing products. This reduces claim rejections and protects your revenue.
Seller Support and Compliance
Get a dedicated account manager and help with APOB/PPOB registration, GST compliance, NDR & COD verification, and more.
Why Sellers Choose WareIQ Over FBA
WareIQ is a powerful alternative to Amazon FBA/FBF, offering greater flexibility and cost control.
- Scale easily: Expand or reduce storage space anytime, based on sales seasons or campaigns.
- Faster delivery: Store inventory closer to your customers for quicker regional fulfillment.
- Save more: Fulfill all orders from Amazon, other marketplaces, and your website using one shared inventory pool.
- Stay compliant: All WareIQ warehouses meet marketplace SLAs and seller program standards.
Explore – Amazon FBA Preparation Services by WareIQ
FAQs
What is the Amazon referral fee?
It’s a commission Amazon charges on every product sold. The percentage depends on the product category and is calculated on the total selling price.
How much commission does Amazon take in India?
Amazon commission rates in India usually range from 2% to 20%, depending on the category and fulfillment type.
What is the difference between FBA and Easy Ship?
FBA (Fulfilled by Amazon) means Amazon stores, packs, and ships your products. Easy Ship allows you to store inventory yourself while Amazon handles delivery.
How can I reduce my Amazon seller fees?
You can reduce costs by optimizing packaging weight, selecting the right fulfillment type, and partnering with fulfillment providers like WareIQ to manage logistics efficiently.
