Amazon India Reduces Seller Fees

Amazon India has announced a major reduction in seller referral fees for products priced under ₹1,000, effective March 16. This move builds on its existing ‘zero-referral fee’ policy and now covers over 125 million products. The change aims to attract more merchants to Amazon’s online marketplace, making selling simpler and more profitable, particularly for small businesses and entrepreneurs in tier 2 and tier 3 cities. Some shipping charges are also being reduced to further ease selling on the platform.

The initiative comes as part of Amazon’s larger plan to invest over $35 billion in India by 2030, focusing on expanding AI infrastructure, retail logistics, and supporting small-business growth. The zero referral fee policy launched last year helped drive a 50% increase in new sellers joining Amazon India, highlighting the effectiveness of such incentives in strengthening the platform’s merchant base.

Amazon faces strong competition in India from Flipkart, backed by Walmart, Reliance Industries’ retail arm, and quick-commerce players like Blinkit and Instamart. By easing costs for sellers and expanding its product coverage, Amazon aims to secure a stronger foothold in India’s fast-growing and highly competitive e-commerce sector.