Amazon announces Zero referral fees on over 1.2 crore products; move aimed at boosting growth of lakhs of sellers across India

Amazon India announced its highest-ever reduction in seller fees to support lakhs of small businesses selling on Amazon.in from across the country. In a move aimed at further boosting growth of sellers on Amazon.in, the company has introduced zero referral fees on over 1.2 crore products that are priced below ₹300. Referral fees is a commission that sellers pay to Amazon for each product sold. The zero referral fees apply to more than 135 product categories. 

Amazon has also brought in a simplified flat rate for sellers using external fulfilment channels like Easy Ship and Seller Flex, with national shipping rates now starting at ₹65, down from ₹77. While Easy Ship is a fulfilment channel where Amazon collects packages from a sellers’ location and delivers them to customers, as part of Seller Flex, Amazon manages a portion of the sellers’ warehouse as an Amazon fulfilment center.

Additionally, the company has reduced the weight handling fees for lightweight items under 1 kg by up to ₹17, lowering the overall fees that sellers pay to Amazon.  Sellers shipping more than one product unit at a time stand to see up to 90%+ savings in selling fees on the second unit. These changes will enable sellers to offer a wider selection, competitive offers and grow their business. The revised fees come into effect from April 7, 2025.

Amit Nanda, Director, Selling Partner Services, Amazon India, said "At Amazon India, we are committed to enabling the growth of all sellers because we strongly believe that our success lies in their success. By eliminating referral fees on crores of products and reducing shipping costs, we're making it more lucrative for sellers to sell on Amazon.in. This initiative supports seller growth on Amazon by enabling them to offer a wider selection and present more competitive offers to customers, particularly on everyday low-value items. As we gain efficiencies in our operations, we ensure those benefits reach our sellers and customers.”

In 2013, Amazon started its e-commerce business in India with just 100 sellers and a selection comprising mainly books, with deliveries in select cities. Today, Amazon.in has over 1.6 million sellers on its marketplace selling a wide variety of products from smartphones to household items, from stationery to kitchen products and from gardening tools to musical instruments to customers across all serviceable pin-codes in India. The company has been focused on digitizing small businesses to enable the largest selection, using technology to remove inefficiencies and deliver value to customers. This aligns with Amazon's vision of transforming the way India buys and sells. More than 90% of sellers on Amazon.in are small and medium businesses, and over 50% of the seller base is located in tier 2, 3, and 4 cities. This reflects Amazon's commitment to empowering local entrepreneurs and businesses across India, contributing to the growth of India’s digital economy.