Amazon India Removes Referral Fees for Products Under ₹1,000 to Support Sellers

Amazon India has broadened its zero-referral fee initiative as part of efforts to attract more sellers to its marketplace and strengthen its position in the country’s competitive ecommerce sector, as per news reports. 

Fee Cuts for Low-Priced Products 

The company announced that referral fees on products priced below ₹1,000 will now be reduced to zero across more than 1,800 categories, with the change taking effect from March 16.  

Referral fees represent the commission sellers typically pay per item sold and usually range between 2% and 16.5% of the product’s price. 

Amazon also said that Easy Ship charges for products under ₹300 will be lowered by over 20%. Under the Easy Ship service, sellers keep inventory at their own locations while Amazon manages pickup and delivery logistics.  

According to the company, these measures could enable merchants to save up to 70% in overall selling costs. 

Programme Expansion and Seller Impact 

Amazon first introduced fee waivers in April 2025 for items priced below ₹300, covering roughly 1.2 crore products and contributing to a 50% year-on-year rise in new seller registrations.  

In November 2025, the company temporarily removed referral fees for items under ₹1,000 until December 31 and indicated that the programme might continue depending on seller feedback. 

With the latest expansion, the initiative now covers over 12.5 crore products, a sharp increase from about 1.2 crore items earlier. 

Competition in India’s Ecommerce Market 

Explaining the move, Amit Nanda, Director of Selling Partner Services at Amazon India, said the initiative aims to make selling on the platform simpler and more profitable, especially for small businesses and entrepreneurs in Tier II and Tier III cities. 

The development comes amid increasing competition among ecommerce companies in India. Flipkart introduced a zero-commission model for products under ₹1,000 in November last year and later extended the policy to all items on its Shopsy platform.  

Meanwhile, Meesho, which launched a zero-commission approach in 2021, captured around 37% of India’s ecommerce orders by FY25 and went public in December last year. 

Read More: Quick Home Services Startup Pronto Secures $25 Million in Series B Funding Round! 

Conclusion 

With India’s ecommerce industry projected to grow at a 19% CAGR between 2024 and 2030 and exceed $400 billion, platforms such as Amazon, Flipkart and Meesho are intensifying efforts to attract sellers and customers in the rapidly expanding digital marketplace. 

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