Amazon & Flipkart Seller Profit Calculator India

See the REALeffective commission and payout. Discover where your profit disappears.
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Product Details

Cost & Returns

Typical Indian marketplace return rates range from 5%–20% depending on category.

Your Payout Reality (Monthly)

Total Revenue (Before Any Fees)
₹0
Less: Platform Fees & Taxes(Commission, Shipping, GST, TDS, Returns)
- ₹0
Net Revenue (What You Actually Receive)
₹0
Net Monthly Profit
₹0
Effective Commission0%
Profit Margin0%
Recover this ₹0/ Year

Get your own D2C Website. Keep 100%.

Amazon & Flipkart Seller Fee Terms Explained

Referral Fee

The main commission Amazon or Flipkart charges for using their platform. Calculated as a percentage of your selling price, varying by category (e.g., Apparels pay more than Electronics).

Fulfilment Fee

Fees for storage, packing, and delivery charged by Amazon (FBA/Easy Ship) or Flipkart. Heavier items and faster delivery speeds increase this cost significantly.

Closing Fee

A fixed fee charged per order regardless of price. Often overlooked, this fee directly eats into margins for low-priced products (under ₹500).

GST on Fees (18%)

Marketplaces charge 18% GST on all their service fees (Commission, Shipping, Closing). This is an input credit but affects your immediate cash flow.

TDS (1%)

Under Section 194-O, marketplaces deduct 1% TDS on your Gross Sales before payout. This creates a cash crunch for restocking inventory.

Return & RTO Loss

When an order is returned/refused, you lose the forward shipping, packaging works, and often the closing fee. High returns can turn a profitable product into a loss-maker.

Marketplace vs. Your Own Website

Real Costs Amazon / Flipkart Your Own Website
Referral Fee 8% - 25% 0%
Closing & Fixed Fees ₹25 - ₹60 / Order ₹0
GST on Fees 18% charged ON TOP No Platform GST
Customer Data You don't own it 100% Yours
TDS Deductions 1% Withheld None

Effective Commission

Marketplace~35%+
VS
Your Site~2% (Gateway)

Closing & Fixed Fees

Marketplace₹25 - ₹60 / Order
VS
Your Site₹0

GST on Fees

Marketplace18% EXTRA
VS
Your SiteNone

Customer Data

MarketplaceHidden
VS
Your Site100% Yours

TDS Deductions

Marketplace1% Withheld
VS
Your SiteNone

What Smart Sellers Do Instead

Successful Amazon and Flipkart sellers do not fight marketplace fees. They understand that fees are the cost of customer discovery. Instead of trying to avoid them, they use marketplaces strategically while building long-term control.

Marketplaces are powerful engines for visibility and getting your first few thousand orders. But relying on them alone keeps your margins low and your cash flow unpredictable.

The Smart Seller Blueprint:

  • Use Amazon/Flipkart to acquire new customers.
  • Build brand recall through quality packaging and inserts.
  • Shift repeat buyers to their own website or simple ordering channel.

Benefits of This Hybrid Approach:

  • Zero Commission on repeat orders means pure profit.
  • Daily Payouts instead of waiting weeks for settlement.
  • Data Ownership lets you retarget customers for virtually free.

Even moving just 10% of your loyal customers to a direct channel can double your net profit margin. This is the exact strategy used by the most profitable D2C brands in India today.

Keep the Money You Earn

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Where Did Your Profit Actually Go?

Profit erosion happens through multiple layers, not just a single commission fee.

a. GST on Platform Charges

Marketplaces charge 18% GST on their commission, shipping, and fixed fees. This means if a fee is listed as ₹100, you actually pay ₹118. This expense increases your effective cost beyond the visible percentage.

b. Returns and Reverse Logistics

Returns are a part of all e-commerce businesses, whether you sell on marketplaces or your own site. However, on marketplaces, you often pay closing fees, forward shipping, and return shipping even on returned orders, significantly impacting margins per unit.

c. TDS Cash Flow Impact

Under Section 194-O, 1% TDS is deducted from your gross sales. This is not a permanent loss—you can claim it back—but it creates a temporary cash flow blockage that restricts your ability to restock inventory immediately.

The Real Difference Is Control

Smart brands use marketplaces for customer discovery and their own D2C website for repeat orders and margin stability. This balance is key to long-term profitability.

How to Read Your Amazon Seller Profit Calculation

Understanding your true payout is key to survival in e-commerce.

  • Total Revenue Your gross sales volume before any deductions. This acts as your "top line".
  • Platform Deductions The sum of all fees (Referral, Closing, Shipping, GST) retained by Amazon/Flipkart.
  • Net Revenue The actual amount that hits your bank account. This is your "cash in hand".
  • Net Profit What you keep after paying for the product (COGS). If this is negative, increasing sales will only increase your losses.

Common Profit Calculation Mistakes Amazon Sellers Make

  • Ignoring GST on Fees: Many forget that the 18% GST is charged on top of the commissions.
  • Forgetting Closing Fees: A fixed cost that can eat up to 20% of profits on cheaper items.
  • Underestimating Returns: You don't just lose the sale; you pay for shipping both ways.
  • Treating Revenue as Profit: High sales mean nothing if your net margin is thin.
  • Ignoring TDS Cash Block: The 1% withheld tax reduces your immediate buying power.

Frequently Asked Questions

How accurate is this Amazon Profit Calculator?

This tool uses the standard Amazon India and Flipkart fee structures. While actual fees depend on exact dimensions and categories, this calculator provides a realistic estimate to help you avoid losses, rather than showing inflated potential profits.

Does Amazon charge commission on shipping?

Amazon does not charge a referral fee on the shipping cost paid by the customer, but it does charge separate Shipping & Fulfilment Fees based on the weight and distance of the order.

Why is my effective commission so high (>40%)?

Commission (Referral Fee) is just one part. When you add Closing Fees, Weight Handling Fees, 18% GST on services, and the cost of Returns, the total marketplace cut often exceeds 35-45% of the selling price.

Can I avoid these marketplace fees?

No. You cannot avoid these fees while selling on Amazon or Flipkart. The only way to eliminate these commissions is to build your own D2C website where you own the customer relationship and pay only a small payment gateway fee (~2%).

Is selling on my own website legal in India?

Yes, absolutely. Indian businesses can legally sell directly to consumers via their own websites (Shopify, Woocommerce, Custom) or WhatsApp, alongside their marketplace listings.

Last updated: February 2026
Fee estimates based on current Amazon India & Flipkart policies.