Amazon India has removed referral fees on products under ₹300 and reduced shipping costs to support small sellers.

Amazon India waived its referral charges for products priced below ₹300 to attract more sellers to the platform. Under this rule, more than 1.5 crore products across 135 categories will benefit, reducing sellers' costs. Earlier, Amazon levied a 2-4% referral fee on each sale.

Additionally, Amazon has reduced the national charges for external fulfillment services like Easy Ship and Seller Flex for merchant sellers by nearly 16%, that is, from ₹65 to ₹77 per order. Easy Ship takes the products from the sellers, while Seller Flex has Amazon managing a part of the seller's warehouse as a fulfillment center.

With these new fee changes, selling costs will be massively reduced. A product priced at ₹299, previously attracting fees of ₹130, will now only attract ₹70 in fees. Sellers of multiple quantities will see savings on fees for extra quantities of about 90%. Additionally, Amazon has reduced the weight surcharge for light packages below 1 kg by ₹17 in some cases. The new fees take effect from April 7, 2025.

With these changes, Amazon India, which has 16 lakh sellers as of the last festive season, hopes to enhance long-term growth. Its expansion to the market place saw operating revenue increase by 14% to ₹25,406 crore in FY24, while net losses were narrowed down by 29% to ₹3,470 crore.

In conjunction with rising miscellaneous charges charged by e-commerce platforms such as Flipkart, Swiggy, and Zomato, this action is amiable. The small sellers, especially in tier 2, 3, and 4 cities, are expected to benefit from Amazon's decision.