Amazon Fee Structure 2026: Complete Breakdown for Indian Sellers

Selling on Amazon India in 2026 involves navigating a complex web of fees that can significantly impact your profitability if not understood and monitored correctly. From referral fees that vary by category to FBA charges based on weight and dimensions, every rupee matters when you are operating on thin margins. This comprehensive breakdown covers every fee type Amazon charges Indian sellers, with real examples and practical tips for auditing them. Whether you are a new seller or a seasoned veteran, understanding these fees is essential for pricing your products correctly and protecting your bottom line.

Referral Fees by Category

Referral fees are Amazon's commission on every sale, calculated as a percentage of the total selling price (including shipping). These fees vary significantly by product category. Electronics typically carry a referral fee of 5-8%, while fashion and accessories can go up to 17-20%. Books are charged around 12-15%, and home and kitchen products fall in the 10-15% range. Amazon updates these percentages periodically, so it is crucial to check the current rate card for your specific category.

One common issue is products being mapped to the wrong category, resulting in higher referral fees than necessary. If you notice unusually high commission charges, verify that your product is listed under the correct browse node and category. A simple category correction can save you thousands of rupees per month on high-volume products.

FBA Fees: Weight and Size Charges

If you use Fulfilment by Amazon (FBA), you pay additional fees for storage, pick-and-pack, and shipping. FBA fees in India are calculated based on the product's weight (actual or volumetric, whichever is higher) and size tier. Products are classified into standard size and oversize categories, each with different fee slabs.

For standard-size items, FBA fees typically range from INR 25 to INR 80 per unit depending on weight. Oversize items can cost significantly more — sometimes INR 150 or above per unit. Monthly storage fees also apply, calculated per cubic foot, and these increase during peak seasons (October to December). Long-term storage fees kick in for inventory sitting in Amazon warehouses beyond 365 days, making inventory turnover a critical metric for FBA sellers.

Closing Fees and Fixed Fees

Amazon charges a closing fee on every order, which varies by the selling price of the item. For items priced below INR 250, the closing fee is typically INR 5. For items between INR 250 and INR 500, it rises to INR 10, and for higher-priced items, it can go up to INR 25-30. These may seem small individually, but they add up quickly across thousands of monthly orders.

Additionally, sellers on the Individual selling plan (as opposed to the Professional plan) pay a per-item fee on each sale. Most serious sellers opt for the Professional plan, which charges a monthly subscription instead, making it more economical for anyone selling more than a handful of items per month.

TCS (Tax Collected at Source)

Under Indian GST regulations, Amazon is required to collect TCS at 1% (0.5% CGST + 0.5% SGST for intra-state, or 1% IGST for inter-state) on the net value of taxable supplies made through the platform. This amount is deducted from your settlement and deposited with the government on your behalf. You can claim this TCS as a credit when filing your GST returns. While it does not increase your overall tax liability, it does impact your immediate cash flow since the amount is withheld from your settlements.

How to Audit Your Amazon Fees

Regular fee auditing is not optional — it is a necessity. Amazon's systems process millions of transactions, and errors happen. The most common overcharges include incorrect weight-based FBA fees (due to wrong dimensions in the catalogue), wrong category referral fees, and duplicate charges on cancelled or returned orders. To audit manually, download your fee preview report and transaction-level data from Seller Central and compare charges against Amazon's published rate card.

For a more efficient approach, eVanik's Fee Audit tool automatically compares every charge against expected fees based on product dimensions, category, and current rate cards. It flags overcharges instantly and generates claim-ready reports. Combined with Variance Analysis, you get a complete picture of where your money is going and where you are being overcharged.