Introduction: Know What You’re Paying For
When starting your Amazon India journey, understanding how much Amazon charges in commission—also known as referral fees—is critical for pricing your products and calculating profit margins. Whether you use FBA (Fulfillment by Amazon) or FBM (Fulfillment by Merchant), these fees directly impact your bottom line.
This blog breaks down Amazon’s referral fee structure in India, highlights the difference between FBA and FBM charges, and provides a category-wise fee table to help you make smarter decisions.
What Are Amazon Referral Fees? Referral fees are a percentage-based commission Amazon charges on each sale. It varies by product category and is deducted automatically from your sales earnings.
Formula:
Referral Fee = Selling Price (excluding GST) × Referral Fee %
Common Categories & Their Referral Fees in India (2024)
| Product Category | Referral Fee % |
|---|---|
| Apparel & Accessories | 17% |
| Beauty | 12% |
| Books | 4% |
| Electronics | 5% – 8% |
| Grocery & Gourmet | 8% |
| Health & Personal Care | 10% |
| Home & Kitchen | 10% – 12% |
| Jewellery | 20% |
| Mobile Phones | 3% |
| Shoes, Handbags & Luggage | 15% |
| Toys & Games | 12% |
| Watches | 13% |
| Furniture | 13% |
| Industrial Supplies | 12% |
Note: These are indicative rates as of 2024. Check Amazon’s official fee schedule for updates.
FBA vs FBM: Fee Structure Comparison
While referral fees remain the same whether you use FBA or FBM, there are additional fees you must consider:
Fulfillment by Amazon (FBA)
- Referral Fee: Based on category (same as FBM)
- Fulfillment Fee: Includes picking, packing, shipping (varies by size & weight)
- Storage Fee: Monthly storage charges for products in Amazon warehouse
- Removal & Disposal Fee: Optional charges for unsold or returned inventory
Fulfillment by Merchant (FBM)
- Referral Fee: Based on category (same as FBA)
- Shipping Cost: Borne by seller, based on courier partners or shipping region
- Packaging Cost: Managed and paid by seller
- Customer Service: Handled directly by the seller
| Fee Type | FBA | FBM |
| Referral Fee | ✅ | ✅ |
| Shipping | Included in Fulfillment Fee | Paid by Seller |
| Packaging | Included | Paid by Seller |
| Storage Fee | Yes | No |
| Customer Support | Amazon | Seller |
| Prime Eligibility | ✅ | ❌ (unless Seller-Fulfilled Prime) |
Real Example: Let’s Do the Math
Let’s say you sell a kitchen blender at ₹2,000 (excluding GST) in the Home & Kitchen category (referral fee: 10%).
FBA Seller:
- Referral Fee: ₹2,000 × 10% = ₹200
- Fulfillment Fee (medium item): ₹100 (est.)
- Storage Fee: ₹10 (est.)
- Total Amazon Fee = ₹310
FBM Seller:
- Referral Fee: ₹200
- Packaging + Shipping: ₹120 (courier + material)
- Total Cost to You = ₹320
The difference is often marginal, but FBA gives you Prime eligibility and scale.
How to Access the Latest Referral Fee Info
- Go to Seller Central → Reports → Payments → Fee Preview
- Or visit: https://sellercentral.amazon.in/help/hub
Final Thoughts: Factor in Every Rupee
Understanding Amazon’s referral fees and the real cost of fulfillment ensures you price your products profitably. Whether you go for FBA or FBM, always calculate your total landed cost before listing your products.
Need help figuring it all out? Let BizConsulting.io assist you with personalized profitability planning and Amazon fee management.
Smart pricing begins with smart planning.
