I'll provide the details with the math so that you can calculate. Their commission is different for every product type ranging from 5% to 25% in addition to a fixed price of Rs 10 to 40. On average, mostly 15-18% on the selling proce. But that's not all, you have to pay for the shipping from your end which will be around Rs. 82 if it is not a tiny item.
So, if a product price is 500 INR and you provide free shipping to the customer, this will be your cost:
Fee = 18% + 20 INR = 110 INR
Shipping= 84 INR
Total = 194 INR
Packaging =10 INR
Profit = 296 INR
Though you may get some sales, if you really want to succeed in Amazon and make a living out of it, you should put in some money in Amazon Ads. Add that to the cost of the product. If your advertising is well-targeted, it would cost you 10% of the selling price (Around 50 INR for Rs 500) or less.
And don't forget to calculate GST which you will have to pay to the govt.
Also, keep in mind that some of the orders will get returned or rejected at the time of delivery. If the product returned comes in a bad shape, you may claim some money from Amazon but not 100%. Something around 20 to 50%. They also have some limits on how many you can ask per month (Not sure).
Hope this helps. We learned these numbers when doing Ad campaigns for our clients on Amazon India.
PS: I also hope I'm not breaching any NDA from Amazon.
