Referral Fee Formula:
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The Amazon Referral Fee is a percentage-based commission that Amazon charges sellers for each item sold through their marketplace. This fee varies by product category, typically ranging from 5% to 20% of the item's sale price.
The calculator uses the referral fee formula:
Where:
Explanation: The calculation multiplies the sales price by the category-specific percentage to determine the referral fee amount.
Details: Accurate referral fee calculation is crucial for Amazon sellers to determine product profitability, set competitive prices, and manage business finances effectively.
Tips: Enter the product sales price in INR and the applicable category percentage (between 5-20%). All values must be valid (price > 0, percentage between 5-20).
Q1: How do I know which category percentage to use?
A: Amazon provides a detailed fee schedule for each product category. Check Amazon Seller Central for the specific percentage applicable to your product category.
Q2: Are there minimum referral fees on Amazon India?
A: Yes, Amazon often has minimum referral fees that apply regardless of the calculated percentage. Check current Amazon fee policies for the latest minimums.
Q3: Does the referral fee include GST?
A: Amazon charges GST on top of the referral fee. This calculator shows the base referral fee before taxes.
Q4: Are there any additional fees besides the referral fee?
A: Yes, Amazon may charge additional fees including closing fees, shipping fees, and storage fees depending on your selling plan and fulfillment method.
Q5: How often does Amazon update their fee structure?
A: Amazon typically reviews and may update their fee structure annually. Sellers should regularly check for updates in Seller Central.