| 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%): |
Key Features of Our Amazon Seller Fee Calculator
Our calculator is designed to be user-friendly and detailed, providing accurate fee estimations to help sellers maximize their profits. Below are the key aspects covered by the calculator:
1. Selling Price and Category Selection
Users can input their selling price and choose from a variety of categories, including:
- Books
- Movies
- Music
- Various types of Musical Instruments
- Video Games (including accessories, consoles, and online game services)
Each category has specific referral fee percentages that are automatically applied based on the selected category and the selling price.
2. Shipping Charges and Methods
Shipping costs are another critical factor in determining profitability. Our calculator allows users to select their shipping region (local, regional, national) with predefined shipping charges:
- Local: ₹44
- Regional: ₹53
- National: ₹74
Additionally, users can choose between two shipping methods:
- Self-Ship: Sellers handle their own shipping and logistics.
- Easy Ship: Amazon provides end-to-end delivery from the seller's location to the customer.
These selections impact the closing fee and are integrated into the final cost calculations.
3. Profit Margin Calculation
To ensure sellers achieve their desired profit margins, the calculator includes a field where users can input their target profit percentage. This feature helps in determining the minimum cost price at which they should purchase goods to meet their profit goals after accounting for all fees and taxes.
Detailed Fee Breakdown
Upon calculation, the results section provides a comprehensive breakdown of all fees involved, including:
1. GST on Selling Price
Goods and Services Tax (GST) at 18% on the selling price is calculated to reflect the tax burden on the seller.
2. Referral Fee
The referral fee varies by category and selling price. For example:
- Books: 3% to 12.5% depending on the price range
- Movies and Music: 6.5%
- Musical Instruments: 5% to 9.5% based on specific sub-categories
- Video Games: 2% to 13.5% based on the product type
3. Closing Fee
The closing fee is determined by the selling price and chosen shipping method. Self-Ship and Easy Ship have different closing fee structures:
- Self-Ship: Ranges from ₹7 to ₹65
- Easy Ship: Ranges from ₹3 to ₹56
4. Shipping Cost
The selected shipping charges are added to the total fees, ensuring that sellers account for all logistical costs.
5. GST on Total Fees
GST on the cumulative referral, closing, and shipping fees is calculated to provide a complete tax overview.
6. Total Amount to Amazon
This is the sum of all fees paid to Amazon, including a 1% GST retention.
7. Net Amount in Hand
The net amount the seller receives after deducting all fees and taxes, providing a clear picture of actual earnings.
8. Purchase Price for Desired Profit
The calculator determines the maximum price at which sellers should purchase their inventory to meet their desired profit margin, ensuring cost-effective procurement.
Additional Considerations: Amazon FBA
While our calculator provides a comprehensive fee breakdown for Self-Ship and Easy Ship methods, it does not currently account for Fulfillment by Amazon (FBA) costs. FBA can simplify logistics and offer advantages like faster shipping and better customer service, but it also involves additional fees for storage, picking, and packing:
- Storage Fees: Charged per cubic foot per month.
- Pick and Pack Fees: Based on the weight and dimensions of the item.
These FBA fees can increase overall costs, but the referral commission on the product remains the same. Sellers using FBA need to consider these additional expenses to accurately calculate their profitability.
Read this: Full Guide of GST issues for E-commerce Marketplaces Sellers