Amazon seller profit

How to calculate Amazon seller profit in India

Amazon sellers often look at sales first, but profit depends on purchase cost, GST, packaging, referral fee, closing fee, shipping fee, returns, and settlement deductions.

Start with GST-inclusive selling price

Most Indian sellers enter the customer selling price including GST. From that amount, separate output GST and then compare the remaining economics against product cost, packaging, and platform deductions.

Use product cost with GST clarity

Purchase entry should store unit cost excluding GST and calculate input GST separately. For cash profit visibility, sellers can view product cost including GST, then subtract net GST payable after input credits.

Include all marketplace fees

Amazon profit should include referral fee, closing fee, shipping fee, TCS, TDS, marketplace GST credit, packaging cost, and COGS. Leaving one fee out can make a low-margin listing look profitable.

Practical formula

Estimated profit = selling price including GST - product cost including GST - packaging cost - marketplace fees including GST - net GST payable. TCS and TDS should be tracked separately because they are generally recoverable or adjustable.