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Channel Economics

Amazon India Seller Commission Rates 2025 — Complete Breakdown by Category

Amazon India referral fees in 2025 range from 2% (electronics accessories) to 30% (personal computers). For D2C beauty and personal care — the category most Indian consumer brand founders care about — the effective rate is 18–22% before returns and FBA.

What are Amazon India referral fees?

Amazon India charges a referral fee as a percentage of the total selling price (inclusive of GST) for every item sold. This is not negotiable for most sellers. Referral fees are deducted automatically from your seller account before settlement. In 2025, Amazon India also charges a Closing Fee (fixed per item) for certain categories, and FBA fees if you use Fulfillment by Amazon.

For a ₹599 face serum:
- Referral fee (18%): ₹107.8
- Closing fee: ₹0 (most personal care)
- FBA fee (if applicable): ₹35–75 depending on weight
- Net to seller (before COGS): ~₹416–476

2025 referral fee rates by category

Beauty & Personal Care: 18%
Covers face care, body care, haircare, fragrances. Amazon periodically runs category promotions with reduced fees for new-to-Amazon brands.

Clothing & Accessories: 15–30%
Apparel has tiered rates — 15% for garments under ₹500, 30% above.

Health & Wellness / Nutraceuticals: 10–18%

FMCG / Grocery: 5–12%
Grocery enjoys lower referral fees but high return rates and shorter shelf-life risk.

Electronics: 2–8%
Lowest referral fees but highest return rates (20–30% in some subcategories).

Books / Media: 15–20%

How to calculate your true Amazon margin

The formula for true net margin on Amazon India:

Revenue = Selling Price (incl. GST) × (1 - Return Rate)
Gross Profit = Revenue - COGS
CM1 = Gross Profit - Referral Fee - Closing Fee - Shipping (FBA or Easy Ship) - Return Handling
CM2 = CM1 - Customer Acquisition Cost (Sponsored Products)

For beauty brands, a healthy CM2 on Amazon India is 15–25%. Under 10% signals structural problems with COGS or channel mix.

Frequently Asked Questions

What is the Amazon India referral fee for beauty products in 2025?
Amazon India charges 18% referral fee on Beauty & Personal Care products in 2025. This is calculated on the total selling price inclusive of GST. For a ₹599 product, the referral fee would be approximately ₹108.
Does Amazon India charge GST on referral fees?
Yes. Amazon India charges 18% GST on the referral fee itself. So if your referral fee is ₹108, you pay ₹19.4 additional GST on that fee, totaling ₹127.4 to Amazon. This GST is recoverable as input tax credit for GST-registered sellers.
Are Amazon India referral fees negotiable?
Not for standard sellers. Amazon India negotiates referral fees only for large vendors (1P suppliers) with direct commercial agreements. For marketplace sellers (3P), fees are fixed by category. Amazon does run periodic promotions like 'New-to-Amazon brand' incentives with reduced fees for 90 days.
What is the Amazon FBA fee for a 500g personal care product?
Amazon India FBA fees for a 500g personal care product (non-fragile, small parcel) are approximately ₹45–75 for fulfilment + ₹20–35 for monthly storage per unit. Easy Ship is cheaper for brands with their own warehouse but adds complexity.
How does Amazon compare to Nykaa for beauty brands?
Nykaa charges 22–28% commission on beauty products, higher than Amazon's 18%. However, Nykaa has higher conversion rates for premium beauty (customers come with purchase intent), lower return rates (3–8% vs Amazon's 8–15% for beauty), and better brand presentation tools. Net margin on Nykaa is often similar to Amazon despite higher fees.