Amazon Seller Account Fees in India

If you're considering starting a business on Amazon in India, understanding the various fees associated with an Amazon Seller Account is crucial. Amazon provides a platform for sellers to reach millions of customers, but using it comes with a range of fees that can impact your profitability. Here’s a comprehensive look at the fees involved, including how they are structured and what you can expect when selling on Amazon in India.

Amazon Seller Account Types
Amazon offers two types of seller accounts: Individual and Professional. Each has its own fee structure and benefits.

• Individual Account: This is suitable for those who plan to sell a small number of items. There is no monthly subscription fee, but you will be charged a fee of ₹50 per item sold.
• Professional Account: This account is for those who plan to sell in larger volumes. There is a monthly subscription fee of ₹499 plus GST. This account type does not have per-item fees, which can be more economical for high-volume sellers.

Referral Fees
Referral fees are charged on every item sold. The fee is a percentage of the item's total selling price, including the item price and any shipping charges. The referral fee varies by category:

Category	Referral Fee (%)
Electronics	5%
Books	15%
Clothing & Accessories	12%
Home & Kitchen	15%
Health & Personal Care	15%

Fulfillment Fees
If you use Amazon's Fulfillment by Amazon (FBA) service, there are additional fees:

• Fulfillment Fee: This fee covers the picking, packing, and shipping of your products. It is charged per unit and varies based on the size and weight of the product. For example:

  • Standard-size items: ₹27 per unit
  • Oversize items: ₹79 per unit

• Storage Fee: Amazon charges for storing your inventory in their warehouses. The fees are:

  • Monthly Storage Fee: ₹19 per cubic foot
  • Long-Term Storage Fee: An additional fee of ₹450 per cubic foot applies to items stored for over 365 days.

Additional Fees

• High-Volume Listing Fee: If you have more than 100,000 active listings, a fee of ₹200 per listing may apply.
• Refund Administration Fee: When you issue a refund to a customer, Amazon retains a fee of 3% of the refunded amount, including shipping.

Shipping Costs
For sellers who do not use FBA, you are responsible for shipping costs. Amazon provides a shipping calculator to help estimate these costs based on package size, weight, and destination.

Tax Collection
Amazon collects Goods and Services Tax (GST) on behalf of sellers and remits it to the government. The GST is applicable on various fees and is calculated at the prevailing rate.

Final Considerations
When calculating the total cost of selling on Amazon, it's important to factor in all these fees to determine your profit margins accurately. Here are a few tips to manage your costs effectively:

1. Choose the Right Account Type: If you’re selling in high volumes, the Professional account is often more cost-effective despite the monthly fee.
2. Optimize Fulfillment: Evaluate whether FBA or self-fulfillment is more cost-efficient for your business.
3. Monitor Fees Regularly: Amazon’s fee structure can change, so keep an eye on any updates that might affect your costs.

Understanding these fees can help you make informed decisions and manage your business effectively on Amazon India. By considering all these aspects, you can better plan your pricing strategies and optimize your sales for greater profitability.