Amazon India will eliminate referral fees on more than 12.5 crore products priced below Rs 1,000, expanding a cost-relief program aimed at marketplace sellers. The revised fee structure will take effect on March 16.
In addition, the company will reduce Easy Ship fees by over 20 percent for products priced under Rs 300. Amazon said sellers could save up to 70 percent in total selling fees under the combined changes.
What Is Changing
Referral fees represent the commission sellers pay for each product sold, typically ranging from 2 percent to 16.5 percent of the item’s price. By removing this charge for products under Rs 1,000, Amazon significantly lowers the entry barrier for small-ticket categories.
Easy Ship allows sellers to store products at their own premises while Amazon manages pickup and delivery. The reduction in Easy Ship fees further compresses logistics costs for low-priced items.
From Pilot to Scale
Amazon first introduced zero referral fees in April 2025 for around 1.2 crore products priced below Rs 300 across 135 categories. That move drove a 50 percent rise in new seller registrations, especially from Tier II and Tier III cities. The seller base has since grown to nearly 1.7 million.
In November 2025, the company temporarily removed referral fees for items below Rs 1,000 until December 31. With the latest announcement, Amazon has made the waiver permanent and expanded it tenfold, from 1.2 crore products to over 12.5 crore items.
Amit Nanda, Director of Selling Partner Services at Amazon India, said the initiative aims to make selling on Amazon more profitable and operationally simpler, particularly for small businesses and entrepreneurs outside major metros.
Categories That Benefit
The fee waiver applies to high-volume everyday categories, including apparel, footwear, earphones, sarees, bed sheets, electric kettles, furniture, pet supplies, fashion jewellery, and toys.
Amazon shared illustrations of potential savings. A necklace priced at Rs 999 sold through Easy Ship could save a seller Rs 224 per unit, reducing total fees by 69 percent. Earphones priced at Rs 798 and sold through Fulfilled by Amazon could save Rs 139 per unit, or 56 percent. A T-shirt priced at Rs 299 sold via Easy Ship could save Rs 15 per unit, cutting fees by 21 percent.
Sellers who ship multiple units in a single box could save up to 90 percent on fees for the second unit onward, amplifying cost efficiency.
Strategic Implications
The move addresses three consistent seller concerns: high selling costs, operational complexity, and limited margin room in low-priced segments. By removing referral fees and trimming logistics charges, Amazon increases the viability of value-driven products.
In a marketplace where price sensitivity remains high and competition among e-commerce platforms intensifies, lowering seller friction directly strengthens supply depth. More competitive pricing at the sub-Rs 1,000 level also supports higher transaction frequency, which drives platform engagement.
The policy shift signals a structural recalibration rather than a temporary promotion. Amazon is trading short-term commission revenue for long-term seller expansion and category growth.
