Watching reels that say “Buy from IndiaMART for ₹150 and sell on Amazon for ₹350 to make lakhs per month?”
🚨 WAIT! Don’t start selling yet. You might end up in loss instead of profit.
Let’s break this down with a real-life example and reveal the hidden costs most new sellers don’t consider.
Table of Contents
The Misleading Promise
Case Study: ₹150 Product Sold for ₹350
Amazon Fee Breakdown
GST Calculation and ITC
Hidden Costs (Ads, Packaging, Returns)
Final Profit Calculation Formula
Conclusion: What You Must Learn
The Misleading Promise
Buy a product for ₹150 → Sell for ₹350 → Earn lakhs every month.
Sounds easy, right? But let’s look beyond the surface and calculate the actual profit.
Case Study: ₹150 Product Sold for ₹350
Let’s say you buy a bottle for ₹150 from IndiaMART and list it on Amazon for ₹350. Here’s how the math works out.
Amazon Fee Breakdown
Fee Type Amount
Selling Price ₹350.00
Referral Fee (5%) + ₹17.50
Fixed Fee + ₹10.00
Shipping Fee (below 500g) + ₹65.00
gggggggggggggg ____________
ggggggggg ₹92.5
Amazon GST on fees (18%) + ₹16.65
gggggggggggg ____________
Total Amazon Charges ₹109.15
Bank Settlement (Payout) ₹350 – ₹109.15
gggggggggggggggggg ₹240.85
GST Calculation and ITC
Bank Settlement ₹240.85
Product Cost – ₹150
Product GST (12% of ₹350) – ₹42
ITC + ₹16.65
ggggggggggggggggg ____________
Profit ₹65.5
Hidden Costs (Ads, Packaging, Returns)
Most beginners forget about real-world operating costs like:
Profit ₹65.5
Advertisement Cost – ₹20
Packaging Cost – ₹10
Return Cost – ₹30
gggggggggggg ____________
Actual Profit = ₹5.5
But after all actual expenses, your true profit is only ~ ₹5.5 per unit.
Conclusion: What You Must Learn
📌 Don’t trust clickbait videos blindly.
📌 Always calculate your real profit before listing.
📌 Use Amazon’s Fee Calculator and include: GST, Ads, Packaging , Return rates 📌 Start slow, test, then scale.
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