Landing freelance gigs on Upwork requires more than just a stellar profile. While your skills and experience take centre stage, a well-crafted cover letter can be the secret weapon that sets you apart from the competition.&nbsp;

This guide equips you with expert tips and winning templates for cover letters for Upwork to craft proposals that grab clients' attention and secure those dream projects.

Understanding the Importance of a Cover Letter on Upwork

Defining a Cover Letter in the Freelance Landscape

Cover letters on Upwork serve as introductions, expand your profile, and showcase your suitability for the job, much like in the traditional job market. It's your chance to personalise your proposal, demonstrate your understanding of the project, and showcase what makes you the ideal freelancer for the job.

Why Your Upwork Cover Letter Makes a Difference

Crafting a Winning Cover Letter: Essential Tips

Now that you understand the importance of a cover letter let's delve into the key elements that make it effective:

Add Your Personality (While Remaining Professional)

While professionalism is key, there's no need to be boring. Write in a conversational tone that's respectful but engaging. Avoid starting with dull phrases like "My name is Job Applicant Jean" and instead, let your personality shine through with phrases like “Having helped clients achieve [Specific results] in the past, I believe my skills can be a valuable asset to your [Project Name] project.”&nbsp;

Pay attention to the keywords used in the project description. Subtly integrate these keywords throughout your cover letter for Upwork to improve your proposal's searchability within Upwork's search engine.

Example: Look for keywords in the project description (e.g., "social media marketing"). Subtly weave them into your cover letter to improve searchability within Upwork's search engine. Instead of generic statements like "I have experience in marketing,” go for keyword integration: "I noticed you mentioned a focus on social media marketing and audience engagement. In my previous role, I managed social media campaigns that grew follower bases by 30% through targeted content strategies."

Anticipate potential concerns clients might have and address them directly in your cover letter. This demonstrates your attentiveness and ability to think ahead.

For example, instead of leaving clients wondering with generic statements like "I'm a great writer, trust me,” try addressing concerns like"I understand clear communication is crucial. I provide regular progress updates and keep you informed throughout the project. Feel free to reach out with any questions or concerns."

Instead of a standard sign-off, conclude with a call to action that reinforces your value proposition.

Example: "I'm confident my skills can significantly benefit your project. Let's discuss how I can help you achieve your goals. I'm available for a call at your earliest convenience."

Refine Your Approach: As you gain experience, track what resonates with clients and adapt your cover letters for continued success.

Showcase Your Passion and Understanding of the Client's Industry

Go beyond just listing your skills. Briefly mention what excites you about the client's industry or project type. This demonstrates genuine interest and sets you apart from freelancers focused solely on the job itself.

Example: "I've been following the impressive work your company has done in the sustainability sector, and I'm particularly passionate about [specific aspect of the industry]. My experience in [relevant skill] combined with my enthusiasm for this field allows me to bring a unique perspective to your project."

Highlight Your Skills and Quantify Your Achievements (When Possible)

Don't simply repeat your resume. Briefly showcase your most relevant skills and experiences that directly address the project's requirements. Back up your claims with data. Numbers add credibility and give clients a clearer picture of your impact.

Example: Instead of saying "increased website traffic," quantify it. "I crafted SEO-optimised blog posts that resulted in a 25% increase in organic website traffic for my previous client."

By incorporating these essential tips, you'll craft compelling cover letters that land you the freelance projects you deserve. Remember, a cover letter is an ongoing conversation. Keep personalising and refining your approach to stand out on Upwork!

Sample Cover Letter Templates for Success

These Upwork cover letter samples provide a foundation to build upon, tailored to different freelance specialities.

I am writing to express my interest in your project for [Project Title]. Having reviewed the details, I am confident that my skills and experience in [Your Skills] make me a strong fit for this role.

In my previous work with [Previous Client/Company], | successfully [Describe a Relevant Achievement]. My portfolio showcases a range of projects that demonstrate my ability to [Highlight Relevant Skills]

I am eager to learn more about your vision for this project and discuss how | can contribute to its success. Please find my portfolio attached for your review.

Thank you for your time and consideration.

I came across your project for [Project Title] and was immediately drawn to the opportunity to leverage my expertise in web design. With [Number] years of experience crafting user-friendly and visually appealing websites, I am confident I can deliver exceptional results.

In my previous project for [Previous Client], I designed a website that resulted in a [Quantifiable Achievement] increase in [Metric, e.g., traffic, conversions]. My portfolio showcases my ability to design websites that are not only aesthetically pleasing but also optimised for [Areas of Expertise, e.g. SEO, mobile responsiveness].

I'm eager to discuss your vision for the website and collaborate on a design that exceeds your expectations. Please find my portfolio linked below for your reference: [Portfolio Link]

I came across your project for [Project Title] and was immediately drawn to the opportunity to leverage my content writing skills. With [Number] years of experience crafting engaging and informative content, I am confident I can create pieces that resonate with your target audience and achieve your desired goals.

In my previous role at [Previous Client/Company], I successfully increased website traffic by [Quantifiable Achievement] through the creation of [Type of Content, e.g., blog posts, SEO-optimised articles]. My portfolio showcases my ability to write in various styles and tones, ensuring your content aligns perfectly with your brand voice.

I'm eager to discuss your content strategy and brainstorm ideas that will captivate your audience and drive results. Please find writing samples relevant to your project in my portfolio linked below: [Portfolio Link]

I'm excited to submit my proposal for your [Project Title] project. Having reviewed the details, I am confident my expertise in graphic design can deliver visually stunning and impactful creative assets that align with your vision.

For [Number] years, I've been helping businesses like yours create captivating visuals that elevate their brand identity. In my previous project for [Previous Client], | designed [Type of Design, e.g. logos, social media graphics, website banners] that resulted in a [Quantifiable Achievement] increase in [Metric, e.g. brand awareness, engagement].

My portfolio showcases my design versatility and ability to translate your ideas into effective visuals. I'm particularly skilled in [Areas of Expertise, e.g., brand identity design, illustration, UI/UX design. I'm eager to collaborate with you and bring your design vision to life. Please find a link to my portfolio showcasing relevant design work: [Portfolio Link].

Having reviewed your project for [Project Title], I'm confident my video editing skills and creative vision can transform your raw footage into a compelling and engaging video.

With a passion for storytelling and [Number] years of experience editing videos for [Previous Clients/Companies/Industries], | possess a strong understanding of pacing, transitions, and the power of visuals to capture and hold the audience attention.

In my previous project for [Previous Client], I edited a video that achieved [Quantifiable Achievement] by utilising [Specific Editing Techniques]. My portfolio showcases my ability to edit videos across various styles, from promotional content to explainer videos.

I'm eager to discuss your vision for this project and collaborate on crafting a video that exceeds your expectations. Please find a link to my portfolio showcasing my editing skills: [Portfolio Link].

Note: Adapt the bracketed sections to your specific skill set. Also, while you can use these templates for reference, it's important to make your cover letter very personalised.

By incorporating these tips and templates, you'll be well on your way to crafting compelling cover letters for upwork proposals that land you the freelance projects you deserve. Remember, a cover letter is an ongoing conversation. As you gain experience on Upwork, track what resonates with clients and refine your approach for continued success.

Check out this blog for expert tips and tricks on cover letter templates that will help you craft standout proposals and land freelance gigs on Upwork.

Land Your Dream Freelance Gig: Upwork Cover Letter Guide

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Anoosh Kotak

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Picture this: Your customer has filled their cart and is ready to check out. They prefer using UPI, but your site only accepts credit cards.&nbsp;

Frustrating, right? That's a sale you might lose in seconds. In today's world, customers expect to pay how they want, when they want – whether it's through cards, digital wallets, UPI, or buy-now-pay-later options.&nbsp;

This is where payment aggregators step in, transforming complex payment processes into smooth, one-click experiences. Think of them as your business's payment Swiss Army knife – one tool that handles it all, making life easier for you and your customers. 

Remember when setting up online payments meant drowning in paperwork and juggling multiple bank relationships? Payment aggregators have changed all that. They're like your business's payment department, handling everything from cards to digital wallets under one roof.

A payment aggregator is like your friendly neighborhood payment expert who speaks multiple "payment languages." Whether your customer wants to pay with their trusty credit card, split the bill with EMIs, or quickly scan a UPI QR code, the aggregator makes it all possible through a single connection to your business.

But here's the important part – these aren't just any financial companies.&nbsp;

In India, payment aggregators need the Reserve Bank of India's stamp of approval (a special license) to operate. It's like getting a driver's license but for handling people's money. This ensures your business and your customers' cash stays safe and secure.

Leading payment aggregators and what they offer?

You've probably already used payment aggregators without realizing it. Some well-known names include:

These companies have transformed from simple payment processors into complete payment powerhouses, offering everything from instant settlements to detailed business analytics.&nbsp;

Let's break down the journey of a payment aggregator – from welcoming a new business to helping it grow. Imagine you're opening an online handicraft store; here's how a payment aggregator would help you every step of the way:

Getting you started (merchant onboarding)&nbsp;

Remember signing up for your first bank account? Merchant onboarding is similar but smoother. Instead of visiting multiple banks, you just need to:

Setting up your payment system (integration)&nbsp;

It is like a plugging in your store's payment machine but for the digital world. Payment aggregators make it surprisingly simple:

This is where the magic happens. When your customer clicks "Pay":

Getting your money (funds settlement)&nbsp;

Just like a responsible accountant, the aggregator makes sure you get your money on time:

Helping your business grow (extra features)&nbsp;

This is where payment aggregators go beyond just processing payments:

Picture a payment aggregator as your business's financial co-pilot – not just processing payments but helping you understand and grow your business better.

Let's look at what makes payment aggregators a game-changer for businesses, especially if you're just starting or looking to grow:

Gone are the days of endless bank visits and paperwork. With a payment aggregator, you can start accepting payments within days. It's like getting a fully furnished apartment instead of buying furniture piece by piece – everything you need is ready.

Whether your customer loves paying by card, prefers UPI, or wants to split their purchase into EMIs – you're covered. Consider it your universal payment translator. No need to set up each payment method separately.

Payment aggregators have built-in security features to protect you and your customers. They handle all the complex security requirements (like encryption and fraud detection) so you can focus on running your business. Think of it as having a professional security team watching your payments 24/7.

Want to know which payment methods your customers prefer? Or when you make the most sales? Payment aggregators provide detailed analytics that helps you make smarter business decisions. Picture it as having a business advisor who knows exactly how your payments perform.

Are you running into payment issues at midnight? Most payment aggregators offer round-the-clock support to help solve problems quickly. They're like your tech-savvy friend who's always there to help when payments get stuck.

Most aggregators charge only when you process payments, with no heavy upfront costs. This means you can start small and scale up as your business grows – perfect for startups and small companies watching their budget.&nbsp;

Payment Aggregator vs Payment Gateway: What Are The Differences?&nbsp;

If you've been exploring online payment solutions, you've probably come across both these terms and wondered if they're the same. While they help process online payments, they serve different purposes – consider them cousins in the payment family, not twins.

Let's break down the key differences in a way that's easy to understand:

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Xflow, an India-based payment platform, allows businesses to receive USD payments from international clients. The platform provides features like next-day settlements and automated digital FIRA generation for international transactions.&nbsp;

While the platform currently handles USD transactions only, it offers a streamlined way for freelancers and businesses to get paid from overseas clients.

In this guide, we'll explore Xflow's features, break down its pricing structure, and compare it with alternatives like Wise and PayPal - helping you decide if it's the right fit for receiving your international payments.&nbsp;

Here's everything you get when receiving payments through Xflow:&nbsp;

When you sign up with Xflow, you get your virtual account number to receive USD payments. Think of it like having a US bank account - your international clients can pay you through local transfers, RTP, or Fedwire. While currently limited to USD transactions, these accounts let you collect payments from almost anywhere in the world within hours.

For example, If you're a freelance developer in India, your client in New York can send $5,000 to your Xflow virtual account using their Chase bank account, just like they'd pay any US-based contractor. They'll save on international wire fees, and you'll receive the payment faster than SWIFT transfers. However, note that Xflow only offers virtual international accounts in USD, and you cannot receive payments in any other currencies using Xflow's virtual accounts.&nbsp;

Whenever you receive a payment through Xflow, they automatically generate a digital FIRA within 24 hours. No extra charges no follow-ups needed. This digital document, required for international transactions, lands straight in your inbox - making it easier to maintain compliance without the usual paperwork hassle.

Xflow lets you create shareable payment links in seconds. Enter the amount, generate a link, and send it to your client. Your clients can click and pay, making the collection process smoother. Plus, you can track when the link was viewed and when payment was made.

For example, You're a digital marketing consultant who needs to collect $2,500 for a project. Create a payment link in Xflow, share it via email, and track when your client from Australia views and pays it. The link stays active until payment is received.

Create and send professional invoices directly through Xflow. The platform automatically tracks pending and paid invoices, so you know who owes you what. When a client pays, the system matches the payment to the invoice, saving you from manual reconciliation headaches.

Before converting your USD payments to INR, Xflow shows you exactly how much you'll receive. Their live FX rates come with zero markup, and you'll see the precise INR amount that'll land in your bank account.&nbsp;

Xflow charges a flat 1% fee on every transaction. While they offer live FX rates with zero markup, which is great, that 1% can add up quickly for larger payments. 

For example, if you're receiving $10,000, you'll pay $100 in fees. There's a minimum fee of $8 for lower amounts per transaction. Plus, you get free digital FIRA generation with every payment, which typically costs extra with other providers.

4 Best Xflow Alternatives to Take Note of&nbsp;

While Xflow simplifies USD payments, its 1% fee can affect your earnings, especially if you're a freelancer receiving regular payments. Plus, being limited to USD means you might miss out on clients paying in other currencies.&nbsp;

Let's explore some alternatives that might work better for your international payment needs:

Here's where things get interesting. Like Xflow, Skydo is an India-focused solution that goes beyond just USD payments. You get global bank accounts in multiple countries, including the US, UK, Canada, and Australia, which allow you to receive payments in various currencies.&nbsp;

Like Xflow, Skydo also offers live forex rates without any markup. It has a flat and transparent pricing model: USD 19 for payments below USD 2000 and USD 29 for payments between USD 2001 and USD 10,000. For payments above USD 10,000, Skydo charges a 0.3% fee.&nbsp;

 So, as we saw, with Xflow, receiving USD 10,000 would cost you USD 100. However, with Skydo, it will only be USD 29.&nbsp;

&nbsp;You also get free and instant FIRA, real-time payment tracking, and GST-compliant invoicing tools. For businesses handling multiple currencies, Skydo's transparent pricing and broader currency support make it a compelling alternative to consider.

Previously <a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons">TransferWise</a>, this platform offers actual mid-market rates for multiple currencies. You get local bank details for 10+ countries, making it easier for clients to pay you like a local. Their fees are typically lower than traditional banks, and you'll get your digital FIRA automatically with each payment.

💡<a href="https://www.skydo.com/blog/top_5_wise_alternatives_for_international_payment">Learn more about Wise alternatives</a>

Despite <a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">higher fees</a> (around 7%), PayPal remains popular due to its massive user base of 400+ million accounts. It supports multiple currencies and offers instant access to funds, making it convenient for quick transfers, especially from clients already using the platform.

Payoneer is available in 190+ countries and supports 70+ currencies, making it particularly good for collecting marketplace payments. They provide local receiving accounts in major currencies, however, <a href="https://www.skydo.com/blog/payoneer-fees-india-guide">Payoneer's fees</a> for receiving international payments can be quite steep:

🎯<a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees">Learn more about Payoneer</a>

A Payments Solution can Make or Break your Business: Choose Wisely&nbsp;

Xflow offers a solid solution for businesses focused on USD transactions, with its transparent pricing and automated digital FIRA generation. However, your payment needs might extend beyond a single currency in today's diverse global market.

When choosing a payment platform, consider your transaction volumes, the currencies you deal with, and how often you receive payments. While Xflow's 1% fee structure is straightforward, alternatives like Skydo provide more comprehensive solutions. With Skydo's multi-currency support, zero FX margin, and global bank accounts across the US, UK, Canada, and Australia, you can accept payments from clients worldwide without currency restrictions.

Remember, the right platform should scale with your business growth. As your client base expands internationally, having a payment solution like Skydo that combines competitive pricing with essential features like instant FIRA generation, real-time tracking, and multi-currency support could be crucial for your business' success.

<a href="https://www.skydo.com/">Get started with Skydo today!</a>

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Xflow: Price, Features and Alternatives

Founded in 2010 by entrepreneur brothers Joseph and Patrick Collison, Stripe is an Irish-American company that simplifies global payments for businesses. It offers a wide range of services, including billing, invoicing, and subscription management. It is a preferred choice for businesses with international customers spread across the globe. 

Note that Stripe India currently operates on an “invite-only” model, meaning new Indian businesses must request an invite to open a new Stripe account. Access is granted only if Stripe approves their application.

In this blog, we’ll focus on Stripe’s cross-border payment features, explore its pricing and reviews, and consider whether there’s a more cost-effective alternative for receiving international payments in India.&nbsp;

Stripe India provides Indian businesses with a comprehensive cross-border payment solution, enabling them to receive payments in over 135 currencies. Its <a href="https://stripe.com/in/payments/elements" target="_blank">flexible UI components,</a> such as masking, styling, and error handling, let businesses tailor their checkout experience to match their brand.

For payments, Stripe provides the flexibility to generate instant <a href="https://stripe.com/in/payments/payment-links" target="_blank">payment links</a> or embed its <a href="https://stripe.com/in/payments/checkout" target="_blank">checkout solution</a> directly on your website, supporting both one-time and recurring transactions. However, while Stripe supports a variety of payment methods globally, Indian businesses are limited to accepting international payments via credit card or debit card. Unlike platforms such as Skydo, Wise, or Payoneer, Stripe India lacks features like international virtual accounts or alternative payment options like <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide" target="_blank">SWIFT transfers</a>, wallets etc. In short, with Stripe India, cards are your only option for receiving international payments.

That said, it’s important to note that Stripe India doesn’t provide <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRA </a>for international payments instead it offers something called,<a href="https://support.stripe.com/questions/firc-payment-advice-for-international-transactions-in-india" target="_blank"> payment advice</a> which you need to submit to your bank to obtain the FIRA yourself.&nbsp;

Stripe operates on an invite-only basis in India, with an unclear approval timeline and limited access for new businesses. To open an account, you’ll need additional information like identification numbers, a website or app link, a business description, bank details, an IEC code , and an <a href="https://www.skydo.com/blog/rbi_purpose_code_for_inward_remittance">RBI Transaction Purpose Code.&nbsp;</a>

Stripe Charges in India for Receiving International Payments

Receiving international payments through Stripe India comes with relatively high costs. Since Stripe only supports global payments via cards, you can accept over 135 currencies through Visa and MasterCard, while American Express supports only USD.

Stripe India charges a <a href="https://support.stripe.com/questions/additional-pricing-information-for-indian-cross-border-sellers" target="_blank">4.3% processing fee</a> per successful transaction. Additionally, there’s a <a href="https://support.stripe.com/questions/additional-pricing-information-for-indian-cross-border-sellers" target="_blank">2% currency conversion</a> fee for payments in foreign currencies—something most international transactions will incur. There are also additional fees for dispute settlement, invoicing features and more.

Let’s break down Stripe India’s charges with a simple example:

Imagine you run a business and receive a payment of USD 10,000 from a global client through Stripe India. Here’s what happens next:

Stripe charges a 4.3% processing fee, which is USD 430. After this deduction, your payment drops to USD 9,570.

Since it’s an international payment, Stripe applies a 2% currency conversion fee. Assuming an exchange rate of 1 USD = INR 84, this effectively reduces the rate to INR 82.3 per USD.

Now, multiplying USD 9,570 by the adjusted rate of INR 82.3, you receive INR 7,87,611 in your account.

Compare this to the full value of USD 10,000 at INR 84 per USD, which would be INR 8,40,000. That’s a loss of INR 52,389 due to Stripe’s fees.

In short, using Stripe India for a USD 10,000 payment means you lose over INR 52,000 in fees and lower exchange rates.

Pros and Cons of Using Stripe India for International Payments

✅ Supports Multiple Currencies – Strip India allows businesses to accept payments in 135+ currencies, making it ideal for global transactions.

✅ Comprehensive Payment Tools – With features like invoicing, tax management, and automated billing, Stripe simplifies financial operations for businesses.

✅ Developer-Friendly Integration – Stripe’s robust API ensures seamless integration into websites and apps, making it a preferred choice for tech-savvy businesses.

✅ Global Credibility – As a trusted and secure payment platform used by businesses worldwide, Stripe offers reliability and fraud protection.

❌ High Transaction Fees – Stripe charges 4.3% per transaction plus an additional 2% for currency conversion, cutting into business profits.

❌ No FIRA (Foreign Inward Remittance Advice) – Stripe doesn’t provide FIRA, meaning businesses must handle compliance and documentation separately.

❌ Limited Access in India – Stripe operates on an invite-only basis, requiring businesses to submit documents like IEC and Purpose Code and wait for approval.

❌ Restricted Payment Methods – Unlike other markets, Stripe India only supports card payments for international transactions, limiting options for global clients.

Stripe India Reviews: Pricing, Convenience, Support and More

Here’s a quick look at Stripe Payments reviews from Stripe users to help you decide if Stripe India is the right fit for your needs.

Stripe India is known for its <a href="https://www.g2.com/products/stripe-stripe-payments/reviews?utf8=%E2%9C%93&amp;order=g2_default&amp;filters%5Bsentiment_snippet%5D=1343294" target="_blank">ease of use</a> and seamless integration. Businesses praise how simple it is to embed Stripe on their websites and appreciate features like subscription management and invoicing.

Business owners appreciate Stripe’s convenience and ease of use, but many are put off by its <a href="https://www.g2.com/products/stripe-stripe-payments/reviews?utf8=%E2%9C%93&amp;order=g2_default&amp;filters%5Bsentiment_snippet%5D=1343768" target="_blank">steep pricing.</a> Small businesses, in particular, find the rising costs hard to justify, making Stripe less appealing to them.

Opinions on Stripe India’s customer support are mixed. While some users find it <a href="https://www.g2.com/products/stripe-stripe-payments/reviews?utf8=%E2%9C%93&amp;order=g2_default&amp;filters%5Bsentiment_snippet%5D=1343166" target="_blank">prompt and helpful</a>, others have voiced frustration over<a href="https://www.g2.com/products/stripe-stripe-payments/reviews?utf8=%E2%9C%93&amp;order=g2_default&amp;filters%5Bsentiment_snippet%5D=1343983" target="_blank"> limited support </a>and unexpected account closure.&nbsp;

Skydo: A Stripe India Alternative to take note of

While Stripe India has been a popular choice for international payments, its high fees and recent shift to an “invite-only” model have left many businesses exploring Stripe India alternatives.

Skydo offers a practical alternative, providing a fast, secure, and cost-effective solution. With a simple fee structure—USD 19 for payments under USD 2,000, USD 29 for payments between USD 2,001–10,000 and 0.3% for payments above USD 10,000- Skydo is up to 10x more affordable than Stripe. It also ensures live forex rates with no hidden markups or conversion fees.

For instance, receiving USD 10,000 through Stripe India would cost around INR 52,389 or USD 624 (Considering an exchange rate of INR 84), whereas with Skydo, it’s just USD 29, saving nearly USD 600.

With added benefits like instant, free FIRA and responsive local support, Skydo is becoming a trusted option for businesses in India to simplify their global payments while keeping costs in check. So if you are looking for a Stripe alternative in India, look no further than Skydo. 

Stripe India: Charges, Review and Alternatives 

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For Indian businesses, selling globally through Amazon is a game-changer. It’s a surefire way to multiply your sales and reach customers in the US, Europe, West Asia, and beyond—markets that were once out of reach. Indian products like handicrafts and textiles are in high demand worldwide. Amazon’s Global Selling program helps bridge the gap, connecting Indian sellers with global buyers.

With Amazon’s Global Selling program, Indian businesses can now tap into these massive international markets. But, as with anything this impactful, it comes with several complexities and risks, including high costs. In this blog, we’ll break down the Amazon seller fees you need to know about and share tips to help you maximise your earnings on the platform.

Amazon Global Selling opens up opportunities for Indian exporters to sell in regions like the US, UK, West Asia, and more. Here’s how you can get started:

Amazon Seller Fees: What Does It Cost to Sell Globally?

Growing your Amazon business globally comes with incredible opportunities—but also a price tag. There are several types of Amazon Seller fees exporters need to be aware of, and one major category is Selling Fees. Here’s how it works:

Amazon offers two types of selling plans depending on the size of your business:

In addition to the selling plan, Amazon charges a referral fee on the item price for every product sold. Think of it as Amazon seller commission. This fee is a percentage of the total sale price or a minimum flat amount—whichever is higher.

These fees vary based on product categories, so it’s essential to check the specific rates for the items you sell to factor them into your pricing strategy.

Media items are charged a closing fee for each unit sold in addition to other fees. These items include: Books, DVD, Music, Software &amp; Computer/Video Games, Video Game Consoles, and Video Game Accessories. The closing fee is <a href="https://sellercentral.amazon.com/help/hub/reference/external/GKD9U5REK5DKB38Y?initialSessionID=142-6432681-1885860&amp;ld=NSGoogle&amp;ldStackingCodes=AGSSEMkenshoo_525X19824_e_c_718783564496_asret_%3ENSGoogle%3EAGSSEMkenshoo_525X19824_e_c_718783564496_asret_%3ENSGoogle#wjz_cjc_jcb-3" target="_blank">$1.80 per unit </a>sold for products in these categories.&nbsp;

If you offer textbook rentals on Amazon, you’ll have to pay a rental book service fee of $5.00 for each rental as a part of Amazon Seller fees. 

Suppose you’re selling media items like books, DVDs, music, software, or video games (including consoles and accessories). In that case, you’ll incur a<a href="https://sellercentral.amazon.com/help/hub/reference/external/GKD9U5REK5DKB38Y?initialSessionID=142-6432681-1885860&amp;ld=NSGoogle&amp;ldStackingCodes=AGSSEMkenshoo_525X19824_e_c_718783564496_asret_%3ENSGoogle%3EAGSSEMkenshoo_525X19824_e_c_718783564496_asret_%3ENSGoogle#wjz_cjc_jcb-3" target="_blank"> closing fee of $1.80 per unit sold</a> in addition to other Amazon seller fees.

If you have a large number of active, non-media listings that haven’t sold in 12 months, Amazon charges a monthly fee of $0.005 per eligible listing to cover cataloguing costs. The first 100,000 listings are, however, exempt from this fee.&nbsp;

While these Amazon seller fees apply to all sellers, there are additional charges for optional services. One such service is Fulfillment by Amazon (FBA), which many exporters use to streamline shipping and logistics. Understanding these optional fees is just as important. Here’s a breakdown,

Logistics is a critical part of ensuring your products reach customers on time and in top quality. As an Amazon Global Seller, you have two options for shipping:

If you don’t have a robust logistics setup and looking for an easy ship option, FBA can be a great option to save time and reduce the stress of managing export logistics. Here’s a breakdown of FBA fees:

This Amazon seller fees covers picking, packing, shipping, handling, customer service, and returns. The costs depend on your product's volumetric weight, dimensions, and category (e.g., apparel vs. non-apparel).

You can get the complete list of FBA fulfilment fees as per product sizes<a href="https://sellercentral.amazon.com/help/hub/reference/external/GPDC3KPYAGDTVDJP" target="_blank"> right here</a>.

To promote your products on Amazon, you can leverage their advertising services. This program allows you to run impactful campaigns directly in the Amazon store, with the flexibility to set your own bids and budgets.

Amazon offers a range of ad formats, including video, audio, and display ads, tailored to fit different marketing needs. Most Amazon ads operate on a Cost Per Click (CPC) model, meaning you only pay when someone clicks on your ad. <a href="https://sell.amazon.com/advertising" target="_blank">Learn more about it here</a>.&nbsp;

Amazon also offers a range of additional services like Buy with Prime and Amazon Customer Service. The Amazon seller fees for these services vary based on the specific options you choose and your business needs.

Amazon Seller Fees: What It Costs to Withdraw Your Payments

Now that Amazon has deposited your earnings from your global selling account (after deducting all applicable fees), it’s time to transfer the money to your bank account. You have two main options:

Let’s break down the costs of withdrawing your earnings through each platform.

As an Indian exporter on Amazon, you can use Amazon’s Currency Converter for Sellers (ACCS) to withdraw your earnings. Amazon automatically converts your payments into INR and deposits them into your bank account within 1-5 business days.

You can receive payments in 20+ currencies without needing a foreign bank account. However, the conversion comes at a cost. Amazon uses a volume-based pricing model, which means the higher your earnings, the lower the conversion fee. Also, note that the volume-based pricing is based on your total cross-currency net proceeds during the past 12 months. Here’s how the pricing works:

Let’s break this down with a real example.

Say you earned $200,000 last year after deducting all applicable fees. If you choose to withdraw using Amazon’s Currency Converter, here’s what happens:

Total Cost of Using Amazon’s Currency Converter:

₹2,59,500 (conversion fee) + ₹2,95,500 (forex loss) = ₹5,55,000 lost

That’s over ₹5.55 lakh gone just in fees and forex markup. If you’re withdrawing large amounts, these fees can take a big bite out of your earnings.

If you want to save on Amazon’s high currency conversion fees, you can choose third-party platforms like Skydo, PingPong, or Payoneer to withdraw your earnings. These platforms often offer better exchange rates and lower fees, helping you keep more of your hard-earned money.

If you add your Indian bank account to your Amazon Seller account, you'll be automatically enrolled in Amazon Currency Converter Service.

To use a third-party platform like Skydo or Payoneer, you’ll need to sign up, create a US virtual bank account, and add it to your Amazon Seller account. Skydo provides a US virtual account in under 5 minutes, while other platforms may take a few days

Let’s break down how much it costs to withdraw your Amazon earnings through these alternatives and see which one gives you the best value.

Payoneer and PingPong: How Much Do They Cost?

Payoneer and PingPong are well-known platforms for cross-border payments, helping exporters worldwide withdraw their Amazon Global Selling earnings directly into their bank accounts. But how much does it really cost?

Let’s break this down with the same $200,000 earnings example:

Final Cost of Withdrawing via Payoneer or PingPong