Amazon.in settlement report: how to read it and find your real profit

Amazon.in settles your account on a cycle and pays the balance out: Amazon.in seller fees and how they worksays payment for your sales, net of seller fees, is deposited into your bank account every 7 days. How long each order's money is held before it can be released depends on your STEP level, and it can take up to five business days to arrive after Amazon initiates the transfer (When will I be paid? (Seller Central)).

The settlement report is the file behind that deposit. In Seller Central it is under Payments → All Statements, where each settled period can be downloaded as XML or as a flat file; the V2 flat file is the one FBA sellers pivot by order. It contains a separate line for every product in an order, every product you refunded, and other events such as adjustments (Download payment reports (Seller Central)).

Two honest numbers for the same fortnight can differ by a lot, because they answer different questions. Order-side revenue is what customers ordered: it is what your business reports say and what you invoice and pay GST on. Settlement-side revenue is what was released for payment in a settlement period.

Standard orders are subject to a delivery-date-based reserve, so the money sits as a deferred transactionuntil Amazon knows the buyer received the order — and the order's own fees, such as the referral and FBA fulfilment fees, are deferred with it and charged when the payment is released. Other charges, advertising among them, hit your account when they are billed rather than waiting for the order (Deferred transactions for accounting and payment reconciliation).

• Transaction report — by posted date, and it includes deferred transactions. This is the one to use for accrual bookkeeping and sales-to-earnings reconciliation.
• Statements — by release date, and only released transactions. This is the one that must tie to your bank account.
• A sale near the end of a period will usually appear in the transaction report for that period and in the statement for the next one. That gap is normal, not a missing payment.

Fee amounts change — the fee schedule itself carries an effective date — and they vary by category, item price band and fulfilment channel, so this guide defines the fees and sends you to your own numbers. Read your actual amounts in the Revenue Calculator, the fee preview on a SKU, or the fee lines of the settlement report itself. Everything below is from Selling on Amazon fee schedule (Seller Central) and the FBA help pages.

Referral fee

Charged on each item you sell, as a percentage of the total sales price that varies by category. Amazon calculates it on the total amount the buyer pays — item price, delivery and gift-wrap charges included — excluding taxes it collects through its own tax calculation services.

There is no minimum or maximum referral fee, and the percentage differs by fee category, so read yours in Manage inventory or the Referral Fee Preview report.

Source: Selling on Amazon fee schedule (Seller Central)

Closing fee

A fixed fee charged every time a product of yours sells, set by the item price the buyer pays (including any delivery or gift-wrap charges you charge) and by how the order is fulfilled — fulfilment centre, Seller Flex, Easy Ship or Self-Ship.

It is not a fee for closing a listing, closing your account or removing inventory. Having stock returned or disposed of is a removal-order or disposal fee, which is a different line.

Source: Selling on Amazon fee schedule (Seller Central)

Weight handling / fulfilment fee

If Amazon delivers the order for you — Easy Ship or FBA — it charges a delivery fee. For FBA it is based on the size, weight and shipping zone of the product, and covers inbounding, stowing, retrieving and packaging the unit (pick and pack) plus the weight class and destination (weight handling).

Source: FBA fulfilment fees (Seller Central)

Monthly storage fee

Charged for all units stored in an Amazon fulfilment centre, worked out from the calendar month and your daily average volume of inventory. It is billed between the 7th and 15th of the month after the month it applies to, so it lands in a later settlement than the sales it relates to.

Source: Inventory storage fees (Seller Central)

Long-term storage fee

Charged each month, on top of the storage fee, for units that have sat in a fulfilment centre for more than 150 days.

Source: FBA fulfilment fees (Seller Central)

Removal order and disposal fees

Per-item fees when you ask Amazon to return inventory to you, or to dispose of it. Unsellable units can be removed automatically, so these can appear without you asking this cycle.

Source: FBA fulfilment fees (Seller Central)

Cancellation charge

A percentage of order value when an order is cancelled by you for a reason other than a buyer request, or cancelled by Amazon because it was not shipped and confirmed within 24 hours of the estimated ship date.

Source: Selling on Amazon fee schedule (Seller Central)

Refund commission fee

Charged when a customer returns an order. On those returns Amazon reimburses the referral fee, and on undeliverable or customer-rejected orders it reimburses the referral and closing fees, for orders eligible under the policy.

Amazon's policy page does not state the amount of the refund commission, so take it from your own settlement report rather than any number quoted elsewhere.

Source: Fees – return and refund policies (Seller Central)

GST on Amazon's fees

All the fees above are exclusive of 18% GST, which Amazon adds. For a registered seller that GST is input-tax credit rather than a cost — confirm how to claim it with a CA.

Source: Selling on Amazon fee schedule (Seller Central)

TCS under GST is 0.5%. The e-commerce operator collects it on the net value of taxable supplies it facilitates. It came down from 1% with effect from 10 July 2024: the CGST rate went from half a per cent to 0.25 per cent (Notification 15/2024–Central Tax, 10 Jul 2024 (CBIC)), with the same again as SGST, and the inter-state IGST rate went from one per cent to half a per cent (Notification 01/2024–Integrated Tax, 10 Jul 2024 (CBIC)). It is claimable as credit in your GST returns, not a cost of doing business.

TDS on your sales is about 0.1%.Sellers and accountants still call it “194-O”, after the section of the Income-tax Act, 1961. Since 1 April 2026 the provision lives in the Income-tax Act, 2025: section 393, Table Sl. No. 8(v) sets tax deducted by an e-commerce operator on the sale of goods or provision of services by an e-commerce participant at “0.1% of gross amount of such sale or services or both”, with a nil threshold (Income-tax Act, 2025, section 393 (Income Tax Department)). It is credit against your income tax when you file.

So both taxes reduce the cash in this settlement and neither reduces your profit. Treating them as costs is one of the commonest ways a homemade profit sheet goes wrong. Rates and how they apply to your own case change — confirm with a CA.

• Reserve — funds Amazon keeps back to cover potential or existing buyer disputes, including A-to-z claims and chargebacks; the balance carries into the next settlement period and is released when Amazon concludes it is no longer needed (What is account level reserve? (Seller Central)). Most of what used to show as one account-level lump now appears as deferred transactions per order instead.
• Refunds and returns — a refund is its own line in the report, reversing what the buyer paid. Fees do not all come back with it: on a customer return the referral fee is reimbursed while a refund commission fee is charged, and on undeliverable or customer-rejected orders both the referral and closing fees are reimbursed for eligible orders (Fees – return and refund policies (Seller Central)).
• Reimbursements — money for inventory lost or damaged by Amazon or a carrier. Amazon pays a percentage of the assessed fair market value of the unit, less the FBA and selling fees that would have applied (FBA fulfilment centre damaged inventory reimbursement policy). It is income you did not sell, so keep it out of your sales figures, and remember the stock behind it is gone.
• Promotions you funded — these have their own lines. They cut what you receive without being an Amazon fee, so total them separately before concluding that fees are what ate the margin.

Every figure in this table is invented to show the shape of the calculation. They are not Amazon's fees, not an average, and not a benchmark — your own report is the only source of your numbers.

The deposit is ₹1,25,944; the profit left after GST on sales and the cost of the goods is ₹27,266; and once the ₹9,956 of TCS, TDS and held-back money comes back, the period is worth ₹37,222. Two things to take from the shape of it: the deposit is not revenue, and the “taxes” line is not a cost.

Run the same calculation on your own figures — nothing you type leaves your browser.

Every definition and rate on this page comes from one of these. Check them before you act on anything here.

• Amazon.in seller fees and how they work
• When will I be paid? (Seller Central)
• Download payment reports (Seller Central)
• Deferred transactions for accounting and payment reconciliation
• Selling on Amazon fee schedule (Seller Central)
• FBA fulfilment fees (Seller Central)
• FBA features and fees (Seller Central)
• Inventory storage fees (Seller Central)
• Fees – return and refund policies (Seller Central)
• FBA fulfilment centre damaged inventory reimbursement policy
• What is account level reserve? (Seller Central)
• Notification 15/2024–Central Tax, 10 Jul 2024 (CBIC)
• Notification 01/2024–Integrated Tax, 10 Jul 2024 (CBIC)
• Income-tax Act, 2025, section 393 (Income Tax Department)

• Settlement “real profit” calculator — your figures, the same arithmetic as the example above.
• TCS reconciliation — total the TCS in your settlement CSV to match against GSTR-2A.
• Reorder-point and safety-stock calculator
• Amazon FC GST / APOB guides — which GST registration each fulfilment centre needs.