How to interpret your result
The net payout figure nets off each platform's referral fee/commission, closing or platform fee, shipping charges (where the seller bears them), 18% GST on those fees, and TCS (1% on Amazon/Flipkart, none on Meesho) — so it reflects what actually reaches your bank account, not your listed selling price.
GST on platform fees isn't lost money — it's generally ITC-eligible once it appears in your GSTR-2B — and TCS is an advance credit you claim back in GSTR-3B, not a real cost. The number worth watching is your profit margin after product cost, since that's what determines whether the channel is actually worth the inventory commitment.
Run the same product across Amazon, Flipkart, and Meesho before choosing where to list it — categories with high referral/commission rates on one platform sometimes net out better on another once shipping and TCS differences are factored in.
How marketplace fees eat into your profit
For most e-commerce sellers, the headline selling price is not the money that hits your bank account. Between referral fees, shipping, GST on fees, and TCS, a typical order on Amazon India loses 20–30% before you've even factored in your product cost.
Understanding the exact fee structure — by category, by platform, by fulfilment type — is the difference between growing profitably and unknowingly selling at a loss.
Amazon India fee structure (FY 2026-27)
Referral fee — a percentage of the selling price, varies by category:
| Category | Referral fee |
|---|---|
| Mobile Phones | 4% |
| Electronics, Computers | 6–8% |
| Clothing & Apparel | 10% |
| Home & Kitchen | 8% |
| Beauty & Personal Care | 8% |
| Jewelry | 5% (max ₹750) |
Closing fee — charged per order:
- ≤₹250: ₹5 · ₹251–499: ₹10 · ₹500–999: ₹20 · ₹1000–9999: ₹30 · ₹10,000+: ₹50
Shipping (Easy Ship):
- Local zone: ~₹35 base + ₹15 per additional 500g
- Regional/National: ₹65–80 base
GST on fees: 18% on all platform fees (referral + closing + shipping)
TCS: 1% of net sale — deducted at source, but recoverable in your ITR
Flipkart fee structure (FY 2026-27)
Similar structure: commission + platform fee + shipping. Clothing commissions go up to 15%. Flipkart Smart Fulfilment (FSF) rates are similar to Amazon Easy Ship.
Meesho fee structure (FY 2026-27)
Meesho's value proposition to sellers: zero shipping charge (Meesho handles logistics entirely) and lower commissions (0–12% in most categories). No TCS deduction. Ideal for value-segment products where margins are thin.
The TCS trap (and why it's recoverable)
Many new sellers see TCS deductions and assume it's a permanent cost. It's not. TCS is a prepayment of your income tax — the marketplace collects 1% on your behalf and deposits it with the government. You get full credit for this when filing your ITR.
Cash flow impact? Yes — you pay it monthly via marketplace deductions and recover it annually in your tax refund. Budget accordingly.
What margin do you actually need?
See the margin bands above — from under 5% (danger zone) to above 25% (excellent) — for how to read your calculator result.
Why a "small" discount costs more than it looks
Discounting feels harmless in percentage terms — "just 10% off" — but at typical D2C margins, it doesn't come off your profit proportionally. It comes straight off revenue, while your cost base (product cost, marketplace fees, TCS) stays fixed in absolute rupees. That means a 10-point discount can eat far more than 10 points of your actual margin.
Worked example — ₹1,000 order at an 18% contribution margin (₹180 profit):
| Scenario | Selling Price | Margin ₹ | Margin % Remaining |
|---|---|---|---|
| No discount | ₹1,000 | ₹180 | 18% (baseline) |
| 10% discount | ₹900 | ₹80 | 8% — more than half your margin gone |
| 20% discount | ₹800 | ₹(20) | Loss-making |
The lesson: run the discount through your actual numbers before agreeing to a marketplace-requested promotion, a festive-sale markdown, or a competitor price-match. A discount that looks like "10% off" in the marketplace dashboard can be "45% off your actual profit" once you calculate it against margin instead of revenue. Use the calculator above with your discounted selling price plugged in directly — don't estimate the impact by eye.
This matters most in categories where you're already thin — see the margin table above — and even more so if you're also weighing a quick-commerce channel (Blinkit/Zepto/Instamart), where ad spend and listing fees on top of commission compress the room a discount has to work with even further.