In a major decision, Amazon India has announced it will waive referral fees on products priced under ₹300, effective from April 7, 2025.
This change will apply to over 1.2 crore products across more than 135 categories, benefiting both sellers and small businesses.
What Are Referral Fees?
Referral fees are the commissions Amazon charges sellers for every sale, typically ranging from 2% to 4%.
Previously, sellers had to pay this fee even on products priced below ₹300. With this new change, sellers will save on these fees, particularly on low-cost items.
How Small Businesses Benefit
This move aims to support small and medium businesses (SMBs), according to a senior Amazon India official.
Amazon had previously reduced seller fees in several categories by 3% to 12% in September 2024, further easing the financial burden on smaller sellers.
Lower Delivery Costs
Along with eliminating referral fees, Amazon has also reduced shipping charges.
For external fulfillment channels like Easy Ship and Seller Flex, the national shipping charge has been cut to ₹65 from ₹77.
Additionally, the fee for delivering products weighing under 1 kg has been reduced by up to ₹17.
If multiple products are shipped together, the selling fee for the second product will be reduced by up to 90%.
How Will Sellers Benefit?
Amit Nanda, Director of Selling Partner Services at Amazon India, explained that if a product was sold for ₹299, sellers previously paid around ₹130 in referral fees.
Now, that fee will be reduced to just ₹70, significantly lowering the cost for sellers.
Impact on Amazon India’s Earnings
While the exact impact on Amazon India’s earnings is unclear, the company believes this change will benefit both the platform and sellers in the long run.
Amazon Seller Services, the marketplace arm of Amazon India, earned ₹25,406 crore in FY24, growing by 14%.
During this period, the company reduced its losses by 29%, reaching ₹3,470 crore.
This move is a significant step toward supporting small businesses and making e-commerce more accessible for a wider range of sellers.
