Amazon India scraps referral fees for products under Rs 300

Amazon India has announced that it has eliminated the referral fee, or seller fee, on more than 1.2 crore products priced below Rs 300 across over 135 categories on its e-commerce platform.

The referral fee, starting at 2 per cent, is a commission Amazon charges sellers for every product sold via its platform. The zero referral fee will be effective from April 7, 2025. The platform claims to have over 16 lakh sellers offering goods through its e-commerce platform in India.

Apart from the referral fee, which is set to be scrapped, the platform also charges closing fees and weight handling or shipping fees. Sellers may also incur additional charges based on the fulfillment channel, program, or service used—such as pick & pack fees, storage fees, and Fulfillment by Amazon (FBA) removal fees.

In addition to removing the referral fee, the company has also announced reduced shipping costs to help sellers save more.

According to Amazon India, it has introduced a flat shipping rate for sellers using external fulfillment channels such as Easy Ship and Seller Flex, with national shipping rates now starting at Rs 65, down from the earlier Rs 77. It has also reduced weight handling fees for lightweight items under 1 kg by up to Rs 17, further lowering the overall fees sellers pay to Amazon.

Amazon India states that sellers shipping more than one product unit at a time are expected to see up to 90 per cent savings in selling fees on the second unit. The company had previously reduced seller fees—ranging from 3 to 12 per cent—for 59 product categories in September 2024.