Amazon India has announced the elimination of referral fees on over 1.2 crore products priced below Rs 300, spanning more than 135 categories on its e-commerce platform. This move, effective from April 7, 2025, is aimed at supporting sellers and enhancing affordability for customers.
The referral fee is a commission Amazon charges sellers for every product sold through its platform, starting at 2 per cent. By removing this fee for low-cost products, Amazon India aims to lower the overall cost burden on sellers. The company claims to have over 16 lakh sellers offering goods on its platform in India.
In addition to scrapping the referral fee, Amazon India has also announced reduced shipping costs to help sellers save more. The key changes include:
Flat Shipping Rates: For sellers using external fulfillment channels such as Easy Ship and Seller Flex, national shipping rates now start at Rs 65, down from Rs 77.
Lower Weight Handling Fees: Fees for lightweight items under 1 kg have been reduced by up to Rs 17.
Multi-Unit Savings: Sellers shipping more than one product unit at a time can now save up to 90 per cent on selling fees for the second unit.
This is not the first time Amazon India has revised its seller fees. In September 2024, the company had reduced seller fees across 59 product categories, cutting commission rates by 3 to 12 per cent.
While the referral fee is being eliminated for low-cost products, sellers will still be subject to other charges, including closing fees, weight handling or shipping fees, and additional costs based on fulfillment channels or programs such as Fulfillment by Amazon (FBA) storage and removal fees.
The latest fee revisions are expected to provide significant relief to small and medium-sized sellers, making it more viable to list and sell budget-friendly products on Amazon India. The company’s efforts to continuously optimize its fee structure demonstrate its commitment to fostering a more seller-friendly ecosystem while enhancing affordability for consumers.
With these changes, Amazon India strengthens its position as a competitive e-commerce marketplace, encouraging more sellers to join and thrive in the digital retail landscape.
