Amazon to not charge referral fee from sellers on products priced under ₹300

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E-commerce major Amazon India on Monday (March 24, 2025) announced zero referral fees on over 1.2 crore products on its platform that are priced below ₹300.

The move is aimed at supporting small businesses and boosting the growth of sellers on Amazon, a company statement said.

Referral fees are a commission that sellers pay to Amazon for each product sold.

“By eliminating referral fees on crores of products and reducing shipping costs, we’re making it more lucrative for sellers to sell on Amazon.in. This initiative supports seller growth on Amazon by enabling them to offer a wider selection and present more competitive offers to customers, particularly on everyday low-value items,” Amit Nanda, Director, Selling Partner Services, Amazon India, said.

“As we gain efficiencies in our operations, we ensure those benefits reach our sellers and customers,” Nanda said.

The zero referral fees would be applicable across 135 product categories like apparel, shoes, fashion jewellery, grocery, home décor and furnishings, beauty, toys, kitchen products, automotive, and pet products among others.

Amazon has also introduced a new flat rate for sellers using external fulfilment services like Easy Ship and Seller Flex. The national shipping rates now start at ₹65, reduced from ₹77, according to the statement.

Flat rate shipping is a pricing model where a fixed cost is charged for shipping packages, regardless of their weight, size, or distance within defined limits.

While Easy Ship is a fulfilment channel where Amazon collects packages from a sellers’ location and delivers them to customers, as part of Seller Flex, Amazon manages a portion of the sellers’ warehouse as an Amazon fulfilment centre.

Additionally, Amazon has lowered handling fees for lightweight items under 1 kg by up to ₹17, which reduces the fees sellers pay.

“Sellers shipping more than one product unit at a time stand to see up to 90%+ savings in selling fees on the second unit. These changes will enable sellers to offer a wider selection, competitive offers and grow their business. The revised fees come into effect from April 7, 2025,” the company said.

Amazon has over 1.6 million sellers on its marketplace.