How to Sell on Amazon India: Registration, Fees, Fulfilment, GST and Getting Your First Sales

Amazon India gives small sellers access to millions of shoppers, warehousing and delivery. It also brings fees, rules and fierce competition. Success depends on choosing the right product, getting the economics right and following the compliance rules. This guide walks through the practical steps and the calculations that decide whether a product is worth selling.

What you need to register

• A PAN, and in most cases a GSTIN, since selling goods online generally requires GST registration. Some product categories and situations have exceptions, so check with a chartered accountant.
• A bank account in the business or proprietor's name.
• Government photo ID and address proof.
• A working email address and mobile number, a business address and, for some categories, additional approvals such as FSSAI for food or BIS for certain products.
• Brand and trademark documents if you sell under a brand and want brand protection tools.

The seller account types and fulfilment options

Understanding the fees

Selling on Amazon has several costs. Exact rates depend on the category, price and size, and they change, so use the seller central fee schedule and the revenue calculator in your account.

Check your unit economics before you list

Suppose you sell a product for ₹799. Your cost to buy or make it is ₹300, and packaging is ₹25. Assume a referral and closing fee of about 15% in total (₹120), a shipping fee of ₹70, GST handled separately, and advertising of ₹60 per order. Returns average 8% and cost you ₹150 per return.

That is a margin of about 27% before your own time, storage and tax. Use the profit margin calculator and the GST calculator to test your numbers. If margins are thin, look for a cheaper source, a higher price or a different product.

Choose products wisely

1. Look for steady demand and manageable competition, not only trending items.
2. Prefer products that are small, light and not fragile, so shipping and returns stay cheap.
3. Avoid restricted or regulated categories until you know the rules.
4. Differentiate with quality, bundles, packaging or a clear benefit.
5. Order small samples first, then scale when the product sells.

Create listings that sell

• Title: brand, product type, key feature and size, without keyword stuffing.
• Images: a clean main image on a white background and several images showing use, dimensions and benefits.
• Bullet points: clear benefits and specifications.
• Description and A+ content: if you are brand registered.
• Search terms: relevant backend keywords.
• Price and reviews: be competitive, and earn real reviews by delivering quality. Never buy or incentivise fake reviews, which can lead to account suspension.

Advertising and growth

Sponsored ads place your product in search results and on product pages. Start with a small daily budget, target keywords with real buying intent and measure the advertising cost of sale. Pause what does not convert. Increase the budget only on terms that give profit.

Compliance and tax

• File GST returns on time, and reconcile sales reports.
• Amazon deducts tax at source (TCS under GST and TDS under income tax) on e-commerce sales, which is credited to you and adjusts your tax. Rates are set by the government and change.
• Keep accurate records of invoices, stock and returns.
• Follow the e-commerce consumer protection rules on accurate listings, returns and country of origin.

Common mistakes

• Not calculating fees and returns before choosing a product.
• Ordering too much stock too early.
• Poor images and weak titles.
• Ignoring account health metrics such as late shipment and cancellation rates.
• Selling restricted, counterfeit or infringing items.

Fees and policies change often. Always confirm current terms in Seller Central. This guide is general information, not tax or legal advice.

Frequently asked questions

Do I need GST to sell on Amazon India?

In most cases yes for goods, with some exceptions. Confirm with a chartered accountant.

What are the main fees?

Referral fee, closing fee, shipping or fulfilment fee, storage fee and GST on these, plus any advertising.

What is FBA?

Fulfilment by Amazon, where Amazon stores, packs and ships your products and handles returns.

How do I check if a product is profitable?

Subtract the cost, fees, shipping, advertising and a return allowance from the selling price.

Can I sell without a brand?

Yes, in many categories, though brand registration offers more protection and tools.

How do I get reviews?

Provide quality products and service. Never buy or incentivise fake reviews.

Last reviewed 8 November 2026. Rates, limits and rules change, so confirm figures with the official source before you act.