Markets

Amazon India Raises Warehouse Storage Fees By 11% Citing Market Factors

Amazon India has raised its warehouse storage fees by about 11% to ₹50 per cubic centimetre per month, effective November 15, 2025, marking its first storage fee adjustment since 2023, citing market alignment and higher operational costs.

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 Amazon India has raised its warehouse storage fees by about 11% to ₹50 per cubic centimetre per month, effective November 15, 2025, marking its first storage fee adjustment since 2023, citing market alignment and higher operational costs.

Earlier this year, the online retailer had also scrapped referral fees for more than 1.2 crore low-value items priced up to ₹300 across 135 categories and cut fees to 1% or lower for products priced between ₹300 and ₹500, including bedsheets, clocks, home furnishings and ethnic wear.

A reduction of up to 7% had been applied in higher-value categories such as fashion and small appliances.

While Amazon said its overall fee trajectory in 2025 has been significantly downward, several sellers expressed concern over rising costs and frequent revisions. Merchants said repeated hikes in storage and other charges were offsetting the benefits of lower referral fees, with some claiming they were not consulted before the latest changes.

“Amazon is revising fee structures every six months now and not consulting sellers. They keep saying it’s in the interest of sellers, but it’s a one-way street,” a seller from Pune said.

A Bengaluru-based seller, Nagma, who also lists on six other platforms, including ONDC, said that while Amazon remains the “best-performing marketplace for small sellers”, it should consult the seller community before implementing changes. “We see higher traction on Amazon, but they need to take sellers into confidence instead of unilaterally imposing changes,” Nagma said.

Sellers also raised concerns about earlier cost additions introduced in 2025. In June, sellers said Amazon India began charging a flat ₹5 marketplace fee per order, irrespective of value or Prime status.

“Amazon has made self-shipping more expensive and increased closing fees for self-ship orders in 2025, pushing us towards its own logistics network. They will no longer refund the fixed closing fee on customer returns, so the full return cost now falls on us,” said Piyush, a seller from Surat.

“We feel that marketplaces need to have a consultation mechanism in place for reviewing fees and costs to ensure a sustainable ecosystem for e-commerce in India,” said Vinod Kumar, Trustee, Forum for Internet Retailers, Sellers & Traders (FIRST India).

FIRST India is the online retail division of the India SME Forum, the country’s largest organisation for Micro, Small and Medium Enterprises (MSMEs), with more than 98,000 members.

Amazon, however, said, "Our fee strategy is informed by continuous seller feedback collected through multiple channels, including Seller Central forums, account management relationships, surveys, and seller meet-ups.

"Seller success remains fundamental to Amazon, and we approach all fee adjustments with careful consideration of our sellers' interests. We remain committed to maintaining open communication with our seller community as we evolve our policies

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