i have "thought" about getting into amazon selling stuff but the fees at least the amazon ones plus freight and storage only does not make any sense.

https://sell.amazon.in/fees-and-pricing

check "Referral fees"

Modems & Networking Devices 14%

Television 6%

Home improvement - Wallpapers 13.5%

my gross margin is 4-8% at best and that is excluding all returns and losses. how am i supposed to compete with big players who can eat the cost?

the same as you are saying. they want to cut out the middleman (which is you) so retail business is between manufacturers and amazon now with no dependence on existing retail chain?