Amazon waives referral fee on Rs 300 products, cuts shipping charges by 16%

By eliminating referral fees, previously ranging from 2% to 14%, Amazon seeks to boost growth among sellers of low-cost products, making its platform more accessible and reducing financial strain on budget-friendly offerings

In a move to expand its seller base, Amazon India has announced a significant change in its fee structure, scrapping referral fees on products listed for less than Rs 300. This move, which will impact over 1.2 crore products across 135 categories, is aimed at empowering small and medium-sized businesses (SMBs) by reducing the costs associated with selling on the platform.

The Amazon referral fee removal is expected to stimulate growth, especially among sellers offering low-cost products. Previously, Amazon charged referral fees ranging from 2% to 14% on each product sold, which could be a significant burden for sellers offering budget-friendly items. By eliminating these fees, Amazon aims to make its platform more accessible.

In addition to the Amazon India seller fee reduction, the company has also slashed its shipping charges for sellers using its fulfillment services, such as Easy Ship and Seller Flex, by almost 16%. The new shipping charges will now range from Rs 65 to Rs 77 per order, down from the previous rates. These Amazon India seller updates, effective from April 7, 2025, reflect Amazon's continued efforts to make its platform more affordable and user-friendly, particularly for smaller sellers with limited product ranges.

Easy Ship is a service that allows Amazon to pick up products from sellers and deliver them directly to customers, while Seller Flex involves Amazon managing parts of a seller's warehouse as an Amazon fulfillment center. The changes to these fulfillment services are particularly beneficial for sellers with low-cost items, who will see significant savings. For example, a product priced at Rs 299, which previously attracted Rs 130 in fees, will now incur only Rs 70 in fees, a saving of more than 40%. Sellers shipping multiple units at once will benefit even further, with savings of up to 90% on the second unit.

Amazon reduces fees to support small sellers

In addition to slashing referral and shipping fees, Amazon has reduced weight handling fees for lightweight products (weighing less than 1 kg) by up to Rs 17. These fee reductions come as part of Amazon’s market changes in 2025, focusing on the company's ongoing commitment to support small sellers. Many of Amazon’s sellers are based in tier 2, 3, and 4 cities across India, where access to affordable selling tools can be limited. Over 45-50% of Amazon’s sellers are located outside major urban centers, making this move especially important for sellers in smaller towns.

“We are a long-term focused organization, and we are confident that these changes will benefit our bottom line as well as our sellers. The savings from these new fee structures will empower small businesses to grow and thrive on our platform,” said Amit Nanda, Director of Selling Partner Services at Amazon India.

As of the most recent reports, Amazon India’s seller base has grown to 16 lakh, up from 14 lakh in the previous year, a sign of the increasing demand for online retail in the country. This move comes at a time when Amazon's competitors, like Flipkart, are also raising platform fees. Flipkart recently introduced a 'Protect Promise' fee of Rs 49 for certain products, in addition to other miscellaneous charges like handling and packaging fees.

Amazon India’s seller updates reflect a broader trend toward reducing the cost of doing business on the platform. The company continues to focus on empowering Amazon India’s market changes in 2025, supporting small and medium-sized enterprises (SMEs) in India to reach a wider audience. By providing these businesses with lower operating costs, Amazon aims to strengthen its foothold in the rapidly growing e-commerce sector and maintain its position as a leader in the digital retail space.

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