Amazon India Slashes Referral Fees for 12Mn Products Under ₹300, Largest in Company's History

Amazon India has announced the largest seller fee cut in its history to support the thousands of small businesses selling on the platform nationwide. Taking effect on April 7, the change aims to boost seller growth by eliminating referral fees for over 12 million products in more than 135 categories priced under ₹300.

The categories including clothing, shoes, jewellery, groceries, home décor, cosmetics, toys and kitchenware will be exempt from referral fees. These fees currently range between 2% and 16% across different categories.

Referral fees are the compensation merchants pay Amazon for each product sold. Eligible categories include clothing, shoes, fashion jewellery, groceries, home furnishings and décor, cosmetics, toys, kitchenware, cars and pet supplies, all now subject to a 0% referral fee.

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Shipping Cost Reduction

The e‑commerce giant's Indian division also announced a reduction in national shipping costs for vendors using third‑party fulfillment platforms such as Easy Ship and Seller Flex, lowering the fee from Rs 77 to Rs 65. Additionally, weight handling costs will be cut by up to Rs 17 for items weighing less than 1 kilogram. The company further noted that sellers shipping multiple devices at once could save up to 90% on the selling expenses for the second product.

“By eliminating referral fees on crores of products and reducing shipping costs, we are 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,” Amit Nanda, Director, Selling Partner Services, Amazon India, said.

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The Background

Following this move, Amazon India had already reduced selling costs for 59 product subcategories by between 3% and 12% in August 2024, ahead of the holiday season. These selling fees include referral fees, weight handling fees, closing fees and other related charges.

The fee reduction comes amid heightened regulatory scrutiny. In August 2024, the Competition Commission of India (CCI) found that Amazon and Flipkart, a rival platform controlled by Walmart, had violated antitrust regulations by favoring certain vendors while marginalising others, as highlighted in a 2020 inquiry.