Amazon India to scrap referral fees on 1.2 crore products under Rs 300

Amazon India will eliminate referral fees on over 12 million products priced below Rs 300 from April 7, in its largest seller fee reduction till date, to support small businesses selling on the platform.

The fee waiver will apply across more than 135 product categories including apparel, shoes, jewellery, grocery, home décor, beauty, toys, and kitchen products. Currently, referral fees – a commission sellers pay Amazon on each sale – range from 2% to 16% in these categories.

The Indian arm of the ecommerce major also announced a reduction in national shipping rates for sellers using external fulfilment channels like Easy Ship and Seller Flex to Rs 65 from Rs 77. It will also cut weight handling fees for items under 1 kg by up to Rs 17.

Sellers shipping multiple units at once could see up to 90% savings on the second unit’s selling fees, the company said.

Amit Nanda, director of selling partner services at Amazon India, said these changes aim to make the platform more attractive for sellers by allowing them to expand their selection and offer more competitive prices, particularly on everyday low-value items.

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He said referral and shipping fees account for approximately 90-95% of the total fees sellers pay on the platform.

“As part of the continuing action to help sellers reduce their cost of doing business, we are now making a really large change in terms of the drop in selling fees on Amazon,” Nanda told ET. “In the past also, we have made fee drops to help sellers. But they were more focused, and