GST at 18% on Selling Price (vary product to product): | |
Referral Fee: | |
Shipping Method: | Closing Fee (based on Shipping Method): |
Shipping Cost: | |
GST on Referral, Closing, and Shipping Fee: | |
Amount to Amazon (1% of GST also retained): | |
Amount in Your Hand (deducted 18% GST): | |
Need to Purchase Goods at (determing your desired profit): | |
Percentage of Share on Selling Price gone to (Amazon Fee + GST 18%): |
How Referral Fees are Calculated
Referral fees are determined based on the selling price of the product and the category it belongs to. The calculation logic varies for each category. Here's a breakdown based on the provided JavaScript code:
- Coin Collectibles:
- Referral Fee: 15% of the selling price
- Silver Coins & Bars:
- Referral Fee: 3% of the selling price
- Furniture - Other Products:
- Referral Fee:
- If selling price is less than or equal to ₹15,000: 15.5% of the selling price
- If selling price is more than ₹15,000: 11% of the selling price
- Referral Fee:
- Toys - Other Products:
- Referral Fee:
- If selling price is less than or equal to ₹300: 9% of the selling price
- If selling price is more than ₹300 and less than or equal to ₹1000: 9.5% of the selling price
- If selling price is more than ₹1000: 11.5% of the selling price
- Referral Fee:
- Grocery - Other Products:
- Referral Fee:
- If selling price is less than or equal to ₹1000: 7% of the selling price
- If selling price is more than ₹1000: 9% of the selling price
- Referral Fee:
- Office - Other Products:
- Referral Fee:
- If selling price is less than or equal to ₹500: 10% of the selling price
- If selling price is more than ₹500 and less than or equal to ₹1000: 10.5% of the selling price
- If selling price is more than ₹1000: 11.5% of the selling price
- Referral Fee:
- Personal Care Appliances:
- Referral Fee:
- If selling price is less than or equal to ₹300: 7.5% of the selling price
- If selling price is more than ₹300 and less than or equal to ₹500: 10.5% of the selling price
- If selling price is more than ₹500 and less than or equal to ₹1000: 11% of the selling price
- If selling price is more than ₹1000: 7.5% of the selling price
- Referral Fee:
... and so on for other categories as defined in the JavaScript code.
Why Referral Fees Matter
Referral fees directly impact the profitability of selling on Amazon. Sellers need to understand these fees to accurately calculate their margins and set competitive prices. Higher referral fees may influence pricing strategies or product selection.
Fulfillment by Amazon (FBA) Costs
While our calculator provides insights into Self-Ship and Easy Ship methods, it's important to note that Fulfillment by Amazon (FBA) entails separate expenses not covered in this tool. FBA offers convenience by handling storage, shipping, and customer service, but it comes with its own set of fees:
- Storage Fees: Charged per cubic foot per month.
- Pick and Pack Fees: Based on the weight and dimensions of the item.
These fees can vary based on factors like storage duration, item size, and weight. It's crucial for sellers to factor in these costs to accurately assess their profitability.
Additional Considerations
Beyond referral fees and fulfillment costs, sellers should also consider other expenses such as:
- Closing Fees: Charged for every item sold, covering payment processing and fraud protection.
- Shipping Costs: Vary based on shipping method, product dimensions, and destination.
- GST (Goods and Services Tax): Applicable on referral fees, closing fees, and shipping charges.