| 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 Inputs and Calculations
- Selling Price: The price at which you plan to sell your product on Amazon.
- Category: Different categories have different referral fee percentages. For instance, the referral fee for "Fashion Jewelry" might be different from "Men's T-shirts".
- Shipping Charges: This includes selecting the type of shipping charges - local, regional, or national.
- Shipping Method: You can choose between Self-Ship and Easy Ship, each having its own cost implications.
- Desired Profit Percentage: This helps calculate the minimum cost price at which you should purchase the goods to achieve your desired profit margin.
Referral Fee: Amazon charges a percentage of the selling price as a referral fee, which varies by category. Below is a summary of referral fees for various categories:
- Apparel - Accessories: 15% to 19%
- Apparel - Sweat Shirts and Jackets: 8% to 22.5%
- Apparel - Shorts: 14% to 23%
- Apparel - Baby: 11% to 21%
- Apparel - Ethnic wear: 12% to 22.5%
- Apparel - Other innerwear: 12.5% to 15%
- Apparel - Sleepwear: 11% to 15%
- Apparel - Sarees and Dress Materials: 12% to 22%
- Apparel - Men's T-shirts: 14.5% to 21%
- Apparel - Women's Innerwear / Lingerie: 11% 18%
- Backpacks: 10% to 12%
- Eyewear - Sunglasses, Frames, and Zero Power Eye Glasses: 13% to 15%
- Fashion Jewellery: 22.5% to 24%
- Fine Jewellery - Gold Coins: 2.5%
- Fine Jewellery - Studded: 10%
- Fine Jewellery - Unstudded and Solitaire: 5%
- Silver Jewellery: 10.5% to 13%
- Flip Flops, Fashion Sandals, and Slippers: 10% to 12.5%
- Handbags: 10% to 12%
- Luggage - Suitcase & Trolleys: 5.5% to 8%
- Luggage - Travel Accessories: 10% to 12%
- Kids Shoes: 10% to 16%
- Shoes: 14% to 16%
- Shoes - Sandals & Floaters: 10.5%
- Wallets: 8% to 12%
- Watches: 13.5%
- GST on Selling Price: Goods and Services Tax calculated at 18% on the selling price.
- Closing Fee: This fee is based on the selling price and the shipping method selected.
- Shipping Cost: Depending on whether you opt for Self-Ship or Easy Ship, the shipping costs will vary. Self-Ship usually involves handling your own logistics, while Easy Ship utilizes Amazon's logistics services for a fee.
- GST on Total Fees: GST is also applied to the sum of referral fees, closing fees, and shipping costs.
- Amount to Amazon: This includes all fees and GST, reflecting the total amount paid to Amazon.
- Amount in Your Hand: The net amount you receive after all fees and GST deductions.
- Cost Price: The maximum price you should pay for the goods to ensure your desired profit margin.
Impact of Amazon FBA
While the calculator focuses on standard fees, it's important to note that using Amazon FBA (Fulfillment by Amazon) can further impact your costs. With FBA, Amazon handles storage, packaging, and shipping of your products. This convenience comes at additional costs, such as storage fees and pick-and-pack fees. However, the referral fee percentage remains the same.
Using FBA can significantly streamline operations and improve customer satisfaction due to faster shipping and better service, but it requires careful consideration of the additional fees involved.
Self-Ship vs. Easy Ship
- Self-Ship: You handle the shipping logistics, from packaging to delivery. This method can be more cost-effective but requires more effort and time.
- Easy Ship: Amazon manages the shipping process. While more expensive, it ensures reliable and timely delivery, enhancing the customer experience.