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Commission Formula:
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Amazon commission refers to the fees that Amazon charges sellers for each product sold through their platform. These fees vary based on product category and help cover Amazon's services including platform maintenance, payment processing, and customer service.
The calculator uses the commission formula:
Where:
Explanation: The commission is calculated by multiplying the selling price by the commission rate expressed as a decimal.
Details: Accurate commission calculation is crucial for sellers to determine their net profit, set competitive prices, and understand the true cost of selling on Amazon's platform.
Tips: Enter the selling price in Indian Rupees (INR) and the commission rate as a percentage. Ensure both values are positive numbers with the rate between 0-100%.
Q1: What are typical Amazon commission rates?
A: Amazon commission rates vary by category, typically ranging from 6% to 45% depending on the product type and category.
Q2: Are there additional fees besides commission?
A: Yes, Amazon may charge additional fees including referral fees, closing fees, shipping fees, and storage fees depending on the selling plan and services used.
Q3: How often are commissions charged?
A: Commission fees are deducted from your seller account balance for each completed sale, typically when the order is processed.
Q4: Can commission rates change?
A: Yes, Amazon periodically updates its fee structure. Sellers should regularly check the latest fee schedule in their seller central account.
Q5: Is the commission calculated on the total order value?
A: Commission is typically calculated on the item price plus any shipping charges, but may exclude taxes and gift wrap charges in some cases.