Amazon India has announced that it will no longer charge referral fees for products priced under ₹300, a move likely to cheer up thousands of small sellers. The action is anticipated to lower expenses for vendors with narrow profit margins and may result in a more excellent selection of reasonably priced goods on the marketplace.
The e-commerce major confirmed that this waiver applies to over 1.2 crore products across 135 categories, including clothing, footwear, fashion jewellery, kitchen essentials, grooming items, home décor, toys, and pet supplies. Referral fees, typically a percentage of the product’s price, are Amazon’s commission on every sale. For sellers operating in low-cost segments, that charge often eats into already narrow profits.
Official Statement By Amazon India
“We are constantly working to make Amazon a more attractive platform for sellers,” said Amit Nanda, Director of Selling Partner Services at Amazon India. “As we improve operational efficiencies, we want to ensure those benefits are passed on to our sellers and customers.”
This is a signal as well as a way to reduce expenses. Amazon wants to increase its hold on India’s value-driven market, where consumers’ sensitivity to price is fueling demand for less expensive goods. The company has been facing stiff competition from newer players like Meesho and traditional rivals like Flipkart, who’ve been aggressively wooing budget-conscious sellers and buyers alike.
Amazon has altered its shipping and logistics costs in addition to waiving the fee. The base national shipping rate has been drastically lowered from ₹77 to ₹65, and a new flat-rate shipping model has been implemented. Because sellers will now pay a standard shipping fee regardless of the package’s size, weight, or distance, this is a good step for small businesses that struggle with unpredictable logistics costs.
For those using Amazon’s in-house logistics services like Easy Ship and Seller Flex, there’s more good news. The company is rolling out simplified pricing models for both programs. Easy Ship involves Amazon picking up orders from the seller’s location and delivering them to customers, while Seller Flex turns a portion of the seller’s warehouse into an Amazon-style fulfilment hub, speeding up last-mile delivery.
Amazon is also trimming handling fees for lightweight products. For packages under 1 kg, sellers will see a reduction of up to ₹17, effective April 7. With more than 16 lakh sellers currently on its marketplace, this could translate to meaningful savings for many – especially those catering to entry-level consumer segments.
Industry watchers see this as a smart strategic move. “Amazon is under pressure to expand its seller base beyond urban centres and premium brands,” said a Mumbai-based retail analyst. “These fee changes send a strong message to small and mid-sized sellers that Amazon wants them to grow.”
Whether this move triggers similar responses from competitors remains to be seen. But for now, Amazon sellers dealing in everyday, low-cost products have something to smile about and possibly, more room to grow.
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