Are you curious about the cost of selling on Amazon and how to earn profits like successful Amazon sellers? Understanding the Amazon seller fees structure is key before diving in. If you're a new or aspiring seller in India, it's important to grasp the updated fees for Amazon seller accounts, fulfillment, and commissions.

The modified pricing structure mentioned in this guide will be effective starting April 7, 2025.

For real-time insights, visit the Amazon Seller Fee Explainer or use the Revenue Calculator.

How Do I Start Selling on Amazon India?

Before checking the cost of selling on Amazon, ensure you're ready to register as a seller. Here's a checklist:

• Valid Email ID

• Active Mobile Number

• GST Number (unless you're selling in GST-exempt categories) or PAN

• Active Bank Account
  

*GST (Goods and Services Tax) applies to the supply of goods and services. It is an indirect tax that replaces numerous others in India, such as excise duty, VAT, and services tax, to make taxation more convenient for citizens.

And that's it! Complete this checklist to begin your registration process.

How much does selling on Amazon cost?

Amazon Seller Fees Explained

The fees for Amazon sellers depend on various factors, including your seller account type:

• Individual Sellers: Pay $0.99 per item sold.

• Professional Sellers: Pay $39.99 per month.

Both pay a variable closing fee of $1.80 per media item sold and a referral fee ranging from 6% to 96%, depending on the product category.

Additional fees depend on how you fulfill and ship your orders.

Mandatory Amazon Fees

Account Fees

You need to select one of two seller plans:

• Individual Plan – $0.99 per item sold, ideal if you sell fewer than 40 items per month. No monthly subscription fee.

• Professional Plan – $39.99 per month, perfect for serious sellers. Includes eligibility for the Buy Box and access to Seller Central tools.

Example: Selling 200 items with the Individual plan costs $198 (200 × $0.99). With the Professional plan, you pay $39.99 regardless of sales volume.

Referral Fees

Every sale on Amazon incurs a referral fee — a commission paid for access to Amazon’s customer base. It’s calculated as a percentage of the total sales price (including shipping and gift wrap fees), usually between 8% and 15%.

• Some categories use tiered referral fees based on the item’s total sales price (TSP).

• For example, furniture referral fees are 15% for TSP up to $200, but reduce to 10% for items above $200.

How Does Amazon Fulfill Orders?

Amazon offers two fulfillment options:

• Fulfillment by Amazon (FBA): Amazon stores, packs, ships products, and handles customer service and returns.

• Fulfillment by Merchant (FBM): You handle storage, packing, labeling, and shipping yourself.

How to List Products on Amazon.in?

Listing Your First Product

To sell your products, you must list them with details like category, brand, features, specs, photos, and pricing.

• Set up your product page in the Manage Inventory section of your Seller Central dashboard.

• You can list products by:

  • Searching or scanning a barcode to add a new deal.

  • Creating a new listing by uploading photos and entering product descriptions.

How Much Money Do You Need to Start Selling on Amazon?

Costs can be divided into three categories:

• Required costs: Essential fees to begin selling.

• Recommended costs: Optional but helpful investments.

• Extra costs: Additional expenses that can aid growth but aren’t necessary for beginners.

Your Guide to Amazon Seller Fees

Selling Plan Subscriptions

• Individual Selling Plan: Suitable for sellers with fewer than 40 sales per month; costs $0.99 per item sold.

• Professional Selling Plan: For sellers with over 40 monthly sales; costs $39.99 monthly, provides bulk listing options, shipping control, and access to more features including eligibility for the Buy Box.

Selling Service Fees

Amazon also offers a platform for home service businesses. There are no upfront fees, but:

• Pre-packaged Services: Amazon charges 20% fees for services up to $1,000 and 15% for amounts over $1,000

Conclusion

According to seller surveys, the average startup cost for selling on Amazon is around $3,836. Based on fees and costs discussed here, expect to invest between $2,790 and $3,940 (including required, recommended, and additional costs) to launch a private label business on Amazon FBA.

With a team of over 500 experienced professionals, we can assist you in launching your account, managing products, and setting up your shop for success.