Blitz Bureau
Highest-ever reduction in selling fees to benefit small businesses
Amazon India has announced its highest-ever reduction in seller fees — to support lakhs of small businesses selling on Amazon.in across the country. The revision, effective April 7, 2025, aims to boost seller growth by eliminating referral fees on over 1.2 crore products that are priced below Rs 300 across 135+ product categories.
Referral fee is a commission that sellers pay to Amazon for each product sold. The zero referral fees will apply to product categories such as apparel, shoes, fashion jewellery, grocery, home décor and furnishings, beauty, toys, kitchen products, automotive, and pet products among others.
Cut in weight handling fees
Amazon India has also brought in a simplified flat shipping rate for sellers using external fulfilment channels like Easy Ship and Seller Flex with national shipping rates now starting at Rs 65, down from the earlier Rs 77. Amazon Easy Ship is a logistics solution aimed at sellers, where Amazon picks up orders from the seller’s location and delivers them to the customers’ doorstep. With Seller Flex, on the other hand, Amazon manages a portion of the seller’s warehouse as an Amazon fulfilment centre.
Additionally, Amazon has reduced the weight handling fees for lightweight items under 1 kg by up to Rs 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 per cent savings in selling fees on the second unit. These changes will enable sellers to offer a wider selection, more competitive offers, and grow their business.
The combined effect of eliminated referral fees and reduced shipping costs translates to substantial improvements in seller savings.
Amit Nanda, Director, Selling Partner Services, Amazon India, says, “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.”
Sellers can now get further benefits on multi-unit purchases, enjoying up to 90 per cent savings in fees on additional units sold. By creating promotions like “Buy 2, Get 10% Off” through the promotions creation tool, sellers can maximise their savings under the new fee structure.
Supporting small businesses
This is the second reduction in the last eight months. In September 2024, Amazon India had announced a reduction in selling fees — ranging from 3 to 12 per cent — for 59 product categories on the marketplace. These fee reductions are part of Amazon’s ongoing commitment to supporting the growth and success of small and medium businesses across India.
Since launching in India in 2013 with just 100 sellers primarily selling books with deliveries in select cities, Amazon India has grown to include over 1.6 million sellers on its marketplace offering products across numerous categories like smartphones to household items and more to customers across all serviceable pin-codes in India.
The company has been focused on digitising 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 per cent of these sellers are small and medium businesses, with over 50 per cent of the seller base in located in tier 2, 3, and 4 cities.
