Amazon India Seller Fees 2026 Explained: Referral, Closing, Weight Handling and FBA
Amazon India's fee structure changed twice in 2026. In March, Amazon removed referral fees on more than 12.5 crore products priced under ₹1,000. In September, it raised closing fees across fulfilment channels. If your pricing and profit sheets still use 2025 numbers, they're probably wrong in both directions.
Here's how each fee works now, and what the changes mean for how you price.
The four fee layers
Every Amazon India order carries some combination of these:
| Fee | What it's for | How it's calculated |
|---|---|---|
| Referral fee | Amazon's commission for selling on the marketplace | A percentage of the selling price, set by category |
| Closing fee | A fixed per-order fee | Fixed amount by price band and fulfilment channel |
| Weight handling fee | Delivery cost (Easy Ship and FBA) | By weight (actual or volumetric) and delivery distance |
| FBA fees | Fulfilment and storage, if you use FBA | Pick and pack per unit, plus monthly storage |
On top of all fees, Amazon charges 18% GST, which GST-registered sellers can claim back as input tax credit.
Referral fee: now zero on most products under ₹1,000
From 16 March 2026, Amazon India stopped charging referral fees on products priced under ₹1,000 across more than 1,800 categories. This extended an April 2025 change that had done the same for products under ₹300.
Two cautions:
- It doesn't cover every category. Check the current referral fee schedule in Seller Central for your exact category and sub-category.
- Closing fees, weight handling fees and FBA fees still apply. A zero referral fee doesn't make a sale free.
Above ₹1,000, the category's normal referral percentage applies to the whole selling price.
Closing fee: raised from 7 September 2026
Amazon charges a fixed closing fee per order, which depends on the item's price band and whether it's shipped through FBA, Easy Ship or Seller Flex. From 7 September 2026, closing fees rose by ₹1 for products priced up to ₹500 and ₹3 for products above ₹500, across all three channels.
Because closing fees are banded, a ₹1 price change can move you into a different band. Check your prices against the band edges.
Weight handling fee
If Amazon delivers your order (Easy Ship or FBA), you pay a weight handling fee. It depends on:
- Weight: the higher of actual weight or volumetric weight (length × width × height in cm ÷ 5,000)
- Distance: local, regional or national delivery
- Size tier: standard or oversize
Bulky, light products pay for their volume, not their weight. Reducing packaging size is often the fastest way to cut this fee.
FBA fees
If you use Fulfilment by Amazon, you also pay:
- Pick and pack per unit
- Monthly storage per cubic foot, with higher charges for long-term stock
FBA usually costs more per unit than Easy Ship, but often earns its keep through faster delivery, Prime badging and a stronger chance of winning the Featured Offer. See our FBA vs Easy Ship vs Self Ship comparison.
Other deductions from your settlement
- GST TCS: Amazon collects tax at source under GST on your sales (currently 0.5%), which you claim back in your GST returns.
- Income tax TDS under Section 194-O (currently 0.1%), claimable against your income tax.
- Cancellation fees: since August 2026, Amazon calculates cancellation fees for Easy Ship and Self Ship orders differently, scaled to the order. Seller-caused cancellations now cost more on higher-value orders.
- Returns: return shipping and processing fees, which vary by category and fulfilment channel.
TCS and TDS aren't costs, but they affect cash flow, so track them.
The ₹1,000 pricing cliff: a worked example
Because the referral fee switches on at ₹1,000 and applies to the full price, a small price increase can leave you with less money. Here's an Easy Ship product in a category with a 9% referral fee. The closing and weight handling fees below are illustrative; use your own rate card.
| Price ₹999 | Price ₹1,049 | Price ₹1,299 | |
|---|---|---|---|
| Referral fee (9%) | ₹0 | ₹94.41 | ₹116.91 |
| Closing fee (illustrative) | ₹25 | ₹30 | ₹30 |
| Weight handling (illustrative) | ₹75 | ₹75 | ₹75 |
| GST at 18% on fees | ₹18.00 | ₹35.89 | ₹39.94 |
| Total Amazon fees | ₹118.00 | ₹235.30 | ₹261.85 |
| Amount after fees | ₹881.00 | ₹813.70 | ₹1,037.15 |
Raising the price from ₹999 to ₹1,049 cuts what you keep by about ₹67 per unit. You'd need to price at about ₹1,125 or above just to match what you keep at ₹999 in this example.
What to do now
- Update your fee assumptions in every pricing sheet to the March and September 2026 changes.
- List every SKU priced between ₹1,000 and about ₹1,125 and model a move to ₹999.
- Check closing-fee band edges for products priced near a band boundary.
- Audit packaging dimensions to reduce volumetric weight.
- Reconcile settlements monthly. Fee errors and incorrect weight measurements happen, and Amazon will review disputed charges.
Frequently asked questions
Is selling on Amazon India free for products under ₹1,000?+
No. Most products under ₹1,000 no longer pay a referral fee, but closing fees, weight handling, FBA fees and GST on fees still apply.
Does the ₹1,000 limit apply to MRP or selling price?+
Amazon applies it by the price the product is sold at, but category rules differ, so check the fee schedule in Seller Central for your exact category.
Can I claim the GST charged on Amazon fees?+
Yes, if you're GST-registered, the 18% GST on Amazon's fees is available as input tax credit.
How do I check my exact fees for a product?+
Use the Revenue Calculator in Seller Central, or check the fee preview on each listing, and compare it with your settlement reports.
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