Home / Business and Economy / Amazon India Slashes Seller Fees for 12.5 Crore Products
Amazon India Slashes Seller Fees for 12.5 Crore Products
2 Mar
Summary
- Amazon India expands zero referral fee program to over 12.5 crore products.
- Sellers can reduce fee expenses by up to 70% under new terms.
- Fee revisions aim to boost small businesses in Tier II and III cities.
Amazon India has announced a major expansion of its zero referral fee program, effective March 16, 2026. This initiative will now encompass over 12.5 crore products priced under Rs 1,000 across more than 1,800 categories, a substantial increase from the 1.2 crore products covered in 2025. Sellers stand to reduce their fee expenses by as much as 70%.
This move follows a similar commission waiver by Flipkart for products under Rs 1,000 and its transition of Shopsy to a zero-commission model. Amazon is also reducing Easy Ship fees by over 20% for items below Rs 300 and offering discounts on multi-item shipments.
The fee revisions are designed to enhance operational efficiency and profitability for small businesses and entrepreneurs, especially those in Tier II and III cities. This comes as Amazon reported a significant narrowing of its net loss to Rs 374.3 crore for the fiscal year ended March 31, 2025, with revenue climbing 19% to Rs 30,139 crore.
Beyond fee cuts, Amazon is enhancing its seller support with AI tools. By 2030, the company plans to equip 15 million enterprises with AI capabilities, including automated listing creation and advanced analytics, within its Seller Central platform. Flipkart is also investing in AI for logistics and offering deferred payment options for advertising.
