Question 1

What are Meesho seller charges?

Accepted Answer

Meesho charges sellers a commission fee (percentage of selling price, which varies by category — often 1% to 5%), and in most cases zero shipping fee for standard prepaid orders. However, return handling, packaging costs, and GST on fees are real costs that reduce net profit. The effective total deduction on Meesho is often 2% to 8% of selling price depending on return rate and category.

Question 2

Does Meesho charge commission in all categories?

Accepted Answer

Yes, Meesho charges a commission fee across all categories, but rates differ. Fashion and lifestyle categories tend to have lower commissions (1% to 3%), while electronics and appliances may have higher rates. Meesho also periodically offers zero-commission promotions for new sellers in specific categories. Always verify the current rate in your Meesho Supplier Panel before listing.

Question 3

What is Amazon referral fee in India?

Accepted Answer

Amazon India referral fees range from 2% to 15% of the selling price depending on the product category. Fashion items are typically at 8% to 15%, electronics at 5% to 8%, and grocery at 2% to 5%. The referral fee is calculated on the total selling price including any applicable shipping charges displayed to the customer.

Question 4

Is GST charged on marketplace fees?

Accepted Answer

Yes. Both Amazon and Meesho charge GST at 18% on their service fees — including commission, shipping fees, and closing fees. This GST is charged to the seller on top of the base fee. Sellers who are GST registered can claim this as input tax credit (ITC) in their GST returns, which effectively reduces the net fee burden.

Question 5

How do returns affect seller profit on Amazon and Meesho?

Accepted Answer

Returns reduce profit in two ways: the selling price is refunded to the customer (lost revenue), and the seller bears a reverse shipping cost. Meesho sellers typically face higher return rates (15% to 30% in fashion) compared to Amazon (5% to 12% average). This return rate difference is one of the biggest factors when comparing Meesho vs Amazon profitability for high-return categories.

Question 6

How to reduce shipping costs on Amazon and Meesho?

Accepted Answer

For Amazon: reduce product weight and dimensions to move to a lower weight slab. Use FBA for high-velocity items where the per-unit fulfilment cost is lower than Easy Ship. For Meesho: Meesho offers zero shipping fees for sellers using Meesho logistics for prepaid orders, making it naturally cheaper for shipping. Focus on reducing return rates to avoid costly reverse logistics.

Question 7

Which platform is better for low margin products?

Accepted Answer

Meesho can be better for low-margin products because its commission rates are lower and shipping fees are often zero for prepaid orders. However, Meesho's high return rates can quickly eliminate this advantage in return-prone categories like fashion or accessories. Use this calculator to model both platforms with your actual return rate assumption before deciding.

Question 8

How to calculate net margin percent?

Accepted Answer

Net Margin % = (Net Profit ÷ Selling Price) × 100. Net Profit = Selling Price − Product Cost − Total Platform Fees (commission + shipping + closing + packaging + GST on fees + return impact). For example: SP ₹500, COGS ₹150, Total Fees ₹90 → Net Profit = ₹260, Net Margin = 52%.

Question 9

What fees are hidden or missed by sellers?

Accepted Answer

Common missed fees: (1) GST at 18% on all marketplace service fees — adds ~18% to base fees; (2) Return shipping costs — especially on Meesho; (3) Packaging costs — often underestimated; (4) Amazon FBA storage fees for slow-moving inventory; (5) TCS (Tax Collected at Source) at 1% on payments; (6) Category-specific closing fees on Amazon. This calculator covers all material fees.

Question 10

Is Meesho better for new sellers?

Accepted Answer

Meesho can be a good starting platform for new sellers because of its low commission structure and zero shipping fees for prepaid orders. However, new sellers should be aware of Meesho's higher return rates and cash flow cycles. Amazon offers better brand visibility and lower return rates in most categories, but requires higher initial investment in listings and advertising. The right choice depends on your product category and margin structure.

Fee Type	Amazon	Meesho
Commission	2%–15% of SP	1%–5% of SP
Shipping	₹35–₹120 (weight-based)	₹0 for prepaid (mostly)
Closing Fee	₹0–₹25 (category-based)	Usually ₹0
GST on Fees	18% on all fees	18% on all fees
Return Rate (avg)	5%–12%	15%–30% (fashion)
FBA / Fulfilment	Optional, adds cost	Meesho Logistics

Item	Amazon	Meesho
Selling Price	₹599	₹599
Product Cost	₹200	₹200
Commission / Referral (8% / 1.8%)	₹47.92	₹10.78
Shipping Fee	₹65	₹0
Packaging Cost	₹10	₹10
GST on Fees (18%)	₹22.13	₹1.94
Return Impact (5% × ₹80 / 18% × ₹55)	₹4.00	₹9.90
Total Platform Cost	₹149.05	₹32.62
Net Profit	₹249.95	₹366.38
Net Margin %	41.7%	61.2%

Amazon vs Meesho Profit Calculator India

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