Amazon to Waive Referral Fees on Products Priced Below Rs 300 in India

New Delhi, March 24 – In a major move aimed at supporting small businesses and encouraging seller growth, Amazon India has announced that it will no longer charge referral fees on over 12 million products priced below Rs 300 on its platform. The decision, which takes effect from April 7, is expected to reduce selling costs for lakhs of sellers across multiple categories.

Referral fees are essentially a commission that sellers pay to Amazon for each item sold. By eliminating this fee on low-cost products, Amazon aims to make its marketplace more attractive and profitable for its seller base, particularly those catering to price-sensitive consumers.

As per agency report, the waiver will apply to 135 product categories including apparel, footwear, fashion jewelry, groceries, home décor, beauty products, toys, kitchenware, and pet supplies. The move is also part of Amazon's broader strategy to improve operational efficiency and pass on the benefits to both sellers and customers.

In addition to scrapping the referral fee, Amazon has also revised its shipping rates. Sellers using its logistics services such as 'Easy Ship' and 'Seller Flex' will now benefit from a reduced national shipping rate, which starts at Rs 65, down from Rs 77. The company introduced a flat-rate shipping model, under which a fixed cost is charged for shipping, regardless of the parcel's weight, size, or distance.

The Easy Ship service involves Amazon collecting packages from sellers and delivering them to customers, while under Seller Flex, Amazon designates a section of the seller’s warehouse as its own fulfillment center.

Furthermore, Amazon has also cut handling charges by up to Rs 17 for lightweight products weighing less than one kilogram, further reducing the financial burden on sellers.

With over 1.6 million sellers currently registered on its marketplace in India, Amazon’s new pricing reforms are expected to boost small business participation and improve price competitiveness across the platform.