Various Fees and Charges Explained
Amazon selling fees depend on the following factors:
- Product Category
- Product Sub-category
- Selling price of your product
- Fulfilment Mode (Easy Ship, Self-Ship, Amazon FBA, Amazon Seller Flex etc.)
- Source and destination locations of the order (Local, Zonal, National)
- Weight and dimensions of the product (Weight-based, Volumetric)
- Storage duration (Short Term, Long Term – when storing at an Amazon Warehouse)
- Shipping Type (Pre-paid, COD)
- Return Type (By Customer, By Courier (RTO), Replacement
Broadly, the Seller Fees for Amazon India consists of the following:
- Referral Fees- This fee also called as Amazon referral fees is charged basis the category that the seller is selling. It also depends on the price of the item. This rate starts at 2% for categories like books (priced below Rs. 250) and can go up to 22.5% for fashion jewellery. The highest is for warranty services which is 38%. It is simply a charge you pay for being showcased on Amazon.
- Closing Fees- This fee is charged every time your product is sold. It depends on the price range of your product and the fulfilment mode you are using.
FBA Closing Fees
- Weight Handling Fees – This is basically your shipping fees. If a seller uses Easy Ship or (FBA) Fulfilment by Amazon, the seller will be charged a fee for the product that Amazon delivers. However, if a seller uses the Self-Ship model, he will have to bear the cost of shipping. Here, engaging a 3rd party courier service or one’s own delivery agents become essential. What are the Amazon rates?
Local rate is applied when the pickup and delivery happens in the same city i.e. intra-city pickup and delivery. Regional rates apply when the shipment moves through the same region. The zone consists of four regions. Amazon applies a national rate when the shipment moves across different regions.
Amazon Shipping Regions:
Region 1 – Chandigarh, Delhi, Haryana, Himachal Pradesh, Jammu and Kashmir, Punjab, Rajasthan, Uttar Pradesh – Zone A*** and Uttarakhand
Region 2 – Dadar and Nagar, Diu and Daman, Gujarat, Madhya Pradesh, Maharashtra
Region 3 – Andaman and Nicobar, Andhra Pradesh, Goa, Karnataka, Kerala, Pondicherry, Tamil Nadu, Telangana, Lakshadweep
Region 4 – Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Jharkhand, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Sikkim, Tripura, Uttar Pradesh-Zone B**, West Bengal
**Uttar Pradesh-Zone B: The following administrative divisions will be considered as part of Uttar Pradesh-Zone B – Ayodhya, Azamgarh, Basti, Devipatan, Gorakhpur, Mirzapur, Prayagraj and Varanasi.
***Uttar Pradesh-Zone A: All administrative divisions in the state of Uttar Pradesh that are not part of Uttar Pradesh-Zone B.
- Fulfilment Model Based Fees- The above shipping fees cover most types of Amazon orders. However, a seller is charged additional fees when they opt for special Amazon fulfilment programs. These include the following:
Pick & Pack Fees (FBA Only) – This fee is charged per unit sold at ₹10 for Standard, ₹50 for Overize, Heavy & Bulky items.
Storage Fees (FBA Only)- This is the fee charged for storing your products in the Amazon Fulfilment Center costing ₹20 per cubic foot per month.
FBA Removal Fees (FBA Only)- In case you wish to remove your products from the Amazon Fulfillment Center then the following fee rates will be applicable:
These above fee rates are applicable for new sellers who will join the “Standard” level program in the Amazon STEP program. As sellers move up levels, they will be able to unlock multiple benefits including fee waivers, account management, faster disbursement cycles & more.
You can further explore the comparison between different Amazon India fulfilment modes below:
Flipkart selling fees and charges depend on the following factors: Types of selling fees and charges that Flipkart charges sellers are as follows: The final settlement amount is equal to your (Order Item Value)- (Marketplace Fees) – (GST on Marketplace Fees). The marketplace fees is split into the following components: Charges under Flipkart Fulfilment (or Flipkart Advantage) Age slabs for Sellable inventory: Regular: < 4 months Age slabs for Unsellable inventory Regular: < 1 months Note: GST taxes will be applicable on all of the above mentioned fees.
Long Term Storage – 1: 4 to 6 months
Long Term Storage – 2: > 6 months
Long Term Storage – 1: 1 to 2 months
Long Term Storage – 2: > 2 months
Flipkart selling fees and charges depend on the following factors:
Types of selling fees and charges that Flipkart charges sellers are as follows:
The final settlement amount is equal to your (Order Item Value)- (Marketplace Fees) – (GST on Marketplace Fees). The marketplace fees is split into the following components:
Charges under Flipkart Fulfilment (or Flipkart Advantage)
Age slabs for Sellable inventory:
Regular: < 4 months
Age slabs for Unsellable inventory
Regular: < 1 months
Note: GST taxes will be applicable on all of the above mentioned fees.