Amazon India Unveils Major Fee Reduction to Empower Small Businesses
Amazon India has launched a comprehensive overhaul of its seller fee structure, branding it a 'structural fee change' aimed at significantly boosting small and medium enterprises across the nation. The ecommerce giant has announced the complete elimination of referral fees on a massive scale, covering over 12.5 crore products priced under ₹1,000. This represents a more than tenfold expansion from the 1.2 crore items that benefited from similar reductions last year, marking a substantial shift in Amazon's strategy to support affordable commerce.
Expansive Zero-Fee Policy Across Diverse Categories
The new policy applies to products under ₹1,000 across an extensive range of more than 1,800 categories. This broad coverage includes daily essentials and popular consumer goods such as t-shirts, shoes, earphones, bed sheets, sarees, electric kettles, coffee tables, pet accessories, fashion jewellery, toys, and numerous other items. Sellers can now achieve savings of up to 70% in overall fees, dramatically improving the profitability of listing and selling low-priced products on the platform.
Significant Logistics and Additional Fee Reductions
In addition to the referral fee waiver, Amazon has implemented substantial cuts in logistics costs. The company has reduced Easy Ship fees by over 20% for products priced under ₹300. The Easy Ship service allows sellers to store inventory at their own premises while Amazon manages the pickup and delivery processes, thereby lowering upfront logistics expenditures. Furthermore, sellers who ship multiple units in a single box can now save more than 90% on fees for the second unit, offering another avenue for margin enhancement and operational efficiency.
Driving Seller Momentum and Platform Growth
These strategic changes come at a time of robust growth for Amazon India, which has reported a 50% year-over-year increase in new sellers joining its marketplace. Amit Nanda, Director of Selling Partner Services at Amazon India, emphasized the impact of these initiatives: "By eliminating referral fees across 1,800+ categories covering over 12.5 crore products, and reducing logistics costs, sellers can save up to 70% in fees. Together, these changes reflect Amazon's continued effort to pass operational efficiencies back to sellers and customers."
Positive Reactions from Small Business Community
Small businesses have enthusiastically welcomed the fee reductions, citing transformative effects on their operations. Ashish Agarwal, Co-Founder of Earthen Story, highlighted the impact of last year's fee cuts: "When Amazon axed referral fees on products under ₹300, it was a game-changer. It suddenly made low-priced heroes like seed packs and specialty flours viable to sell profitably. The savings let us crank up ad spends like never before, fueling 50% explosive growth."
Detailed Examples of Per-Unit Savings
The new fee structure, effective from March 16, 2026, provides clear financial benefits across various product types:
- A fashion jewellery necklace set priced at ₹999 via Easy Ship will save ₹224 per unit, representing a 69% reduction in fees.
- Earphones priced at ₹798 via Fulfilled by Amazon will save ₹139 per unit, achieving a 56% fee reduction.
- A T-shirt priced at ₹299 via Easy Ship will save ₹15 per unit, resulting in a 21% decrease in overall costs.
These examples illustrate the tangible economic advantages that sellers can now leverage to enhance their competitiveness and profitability in the dynamic ecommerce landscape.
