If you wish to take your business to the next level and serve thousands of customers without much effort, your best bet is to join Amazon India marketplace. Do so and you start getting orders from all over India. Before you start counting profits you must factor in the charges you pay to Amazon for its services. These include Amazon referral fee, fixed closing fee and shipping fee in addition to taxes. You have to price products accordingly in order to make a profit. Services.amazon.in makes it easy with its online pricing calculator.

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Referral Fee

The online Amazon Price Calculator at services.amazon.in is just the tool you need to know just how much profit you will make. The referral fee varies according to product categories. Even within product categories, the Amazon seller fees vary according to product. For instance, referral fee in Electronics, PC and wireless category is 16%. It is 17% for automotive accessories, 5% for laptops and 5% for mobile phones and tablets. If you sell a mobile phone at Rs 10000 you pay Rs 500 as referral fee and Rs 40 as closing fee. Closing fee Amazon charges a fixed closing fee according to product category. Then you have to add courier charges. Look at the table to know closing fees in general

Price, including shipping Rs	Closing fee Rs
0 to 250	2
251 to 500	5
501 to 1000	20
Over 1000	40

Courier charges

Pickup and delivery charges vary according to regional zones and distance as well as weight or dimension of parcel.

• Region 1 comprises lDelhi, Himachal Pradesh, Jammu & Kashmir, Punjab, Uttar Pradesh, Rajasthan, Chandigarh and Uttarakhand.
• Region 2 is comprised of Dadra and Nagar, Diu & Daman, Goa, Gujarat, Chattisgarh, Madhya Pradesh and Maharashtra.
• Region 3 comprises Andhra Pradesh, Karnataka, kerala, Andaman & Nicobar, Pondicherry, Telangana, tamil Nadu and Lakshwadeep
• Region 4 comprises of Arunachal Pradesh, Assam, Bihar, Jharkhand, Meghalaya, Manipur, Mizoram, Nagaland, Odisha, Tripura, West Bengal and Sikkim.

Fees vary according to movement within regions and across regions. These are categorized into local, regional and national basis. The table gives a general idea:

		Easy ship weight handling fee in Rs
		Local	Regional	National
Standard size	Up to 500 gms	27	45	65
	Additional 500 gms	16	21	26
Oversize items	Up to 5 kgs	124	168	213
	Each additional kg	7	9	14
Heavy and bulky items	Up to 12 kgs fixed	175	255
	Each additional Kg	3.5	4.5

FBA

If you opt for Fulfilled by Amazon (FBA) Program then Amazon takes care of storage of your products, packing and shipping as well as returns servicing. You have to pay Amazon its FBA Fulfillment fees as detailed below.

 

Fulfilment fees Rs (for small items)
Small sized items	Local	Regional	National
Pick & Pack fees per pc	10
Storage fees per cubic foot per month	20
Weight handling fees
Small sized items	Local	Regional	National
First 500 gms (based on outbound shipping weight	24	30	55
Each additional 500 gms up to 1 kg	15	19	25
FBA for standard size items Rs
Pick and pack fee per unit	15
Storage fee (cubic foot/month	20
Weight handling fee
First 500 grams	24	30	55
Additional 500 gm up to 1 kg	15	19	25
Each additional kg	7	8	13
FBA for oversize items
Pick and pack fee per unit	25
Storage fee (cubic foot/month)	20
Weight handling fee Rs
Up to 5 kg minimum	70	85	135
Each additional kg	7	8	13
FBA for oversize and heavy, bulky items
Pick and pack fee	50
Storage fee (cubic foot/Month)	20
Weight handling fee Rs
Up to 12 kgs minimum	160	240	--
Each additional kg	3	4	--

• The above rates were introduced from 8^th August 2017.
• Taxes at 18% will apply on above rates.
• Amazon has its norms as regards weight and dimensions. For standard and oversize items if dimensional weight is more than actual weight, then the dimensional weight applies.
• For small and standard size items costing above Rs 20000 zero Fulfillment fees will be charged.
• If goods are stored for a long time then additional charges will apply.
• If you want unsold goods returned to you from warehouse then you have to pay charges ranging from Rs 5 to Rs 50 per unit.

The online Amazon calculator gives you an idea of the profit you can make. You can price products accordingly to ensure you do not suffer a loss. At the same time you must also price products competitively if you wish to get orders, keeping in mind prices offered by other sellers. As can be seen, Amazon seller fees can be high for some product categories so you have to fine tune your pricing process. You can seek help from Digicommerce experts.

 

"Detailed information available for beginners on How To Sell On Amazon. Also, can fill Start Selling Now form, Our professional team will contact you within 24 Hrs."

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