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Launch · Commerce & Consumer Brands

Amazon India removes referral fees on products under ₹1,000 from March 16

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Date
Company
Amazon
What it does
online marketplace for sellers and buyers
Kind
Launch
Sector
Commerce & Consumer Brands

What they do

Amazon India is an online marketplace where sellers can list products for buyers to purchase

What happened

The company has removed referral fees on products priced under ₹1,000 across over 1,800 categories, effective March 16

Why it matters

This move aims to lower selling costs for small businesses and entrepreneurs in Tier II and Tier III cities, and could help sellers save up to 70% in total fees

The details

  • Amazon India has removed referral fees on products priced under ₹1,000 across over 1,800 categories, effective March 16.
  • The company also reduced Easy Ship fees by more than 20% for products priced below ₹300.
  • Referral fees are the commission charged to sellers for each item sold on the platform, typically ranging between 2% and 16.5% of a product’s price.
  • Easy Ship allows sellers to store products at their own premises, with Amazon handling pickup and delivery.
  • The move expands a programme first introduced in April 2025, when Amazon India eliminated referral fees on around 1.2 crore products priced below ₹300 across 135 categories.
  • The earlier initiative contributed to a 50% increase in new seller registrations and accelerated growth in Tier II and Tier III cities.
  • In November 2025, Amazon removed referral fees for products priced below ₹1,000 until December 31, based on seller feedback.
  • With the current announcement, the zero referral fee programme now covers over 12.5 crore products, up from about 1.2 crore in 2025.

The bigger picture

  • The move aims to make selling on Amazon.in more lucrative and simpler for small businesses and entrepreneurs in Tier II and Tier III cities.
  • It addresses three recurring concerns raised by sellers: lowering the cost of selling, simplifying operations, and enabling faster growth.
  • The fee changes apply to everyday products that account for a large share of marketplace demand, including T-shirts, shoes, earphones, sarees, and toys.

About the business

  • Amazon India is an online marketplace where sellers can list products for buyers to purchase.
  • The platform operates across over 1,800 categories and serves a wide range of customers, including price-sensitive shoppers.
  • Sellers can use the Easy Ship service, where they store products at their own premises and Amazon handles pickup and delivery.
  • The company has a large seller base, with nearly 1.7 million sellers registered as of the latest update.
  • The platform competes with other major players in India’s ecommerce industry, including Flipkart and Meesho.

The deal

Type
policy

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