Big relief for sellers: Amazon India removes referral fees on products under Rs 1,000 from March 16

Amazon India has expanded its zero referral fee programme to cover more than 12.5 crore products priced under Rs 1,000 across over 1,800 categories, in a structural shift aimed at lowering the cost of selling on its marketplace.

The changes will take effect on March 16.

Alongside the waiver of referral fees, the company will reduce Easy Ship fees by more than 20% for products priced below Rs 300. Amazon India said the combined measures could help sellers save up to 70% in total selling fees.

Referral fees are the commission charged to sellers for each item sold on the platform. These typically range between 2% and 16.5% of a product’s price. Easy Ship allows sellers to store products at their own premises, while Amazon handles pickup and delivery.

The latest move marks a significant expansion of a programme first introduced in April 2025, when Amazon India eliminated referral fees on around 1.2 crore products priced below Rs 300 across 135 categories.

The company said that initiative contributed to a 50% increase in new seller registrations and accelerated growth, particularly in Tier II and Tier III cities. Its seller base has since grown to nearly 1.7 million.

In November 2025, Amazon removed referral fees for products priced below Rs 1,000 until December 31, indicating that a broader rollout would depend on seller feedback. With the current announcement, the zero referral fee programme now scales from roughly 1.2 crore products in 2025 to over 12.5 crore items.

“This move is designed to make selling on Amazon.in more lucrative and simpler particularly for small businesses and entrepreneurs in tier II & III cities,” said Amit Nanda, Director, Selling Partner Services, Amazon India.

According to the company, the expansion addresses three recurring concerns raised by sellers: lowering the cost of selling, simplifying operations and enabling faster growth.

The fee changes apply to everyday products that account for a large share of marketplace demand. These include T-shirts, shoes, earphones, sarees, bed sheets, electric kettles, coffee tables, chairs, pet accessories, fashion jewellery and toys.

Amazon shared illustrations of potential savings under the revised structure. A fashion jewellery necklace priced at Rs 999 and sold through Easy Ship could save a seller Rs 224 per unit, translating to a 69% reduction in total fees. Earphones priced at Rs 798 and sold through Fulfilled by Amazon could result in savings of Rs 139 per unit, or a 56% reduction. A T-shirt priced at Rs 299 and sold via Easy Ship could see savings of Rs 15 per unit, a 21% reduction.

The company added that sellers shipping multiple units in a single box could save up to 90% on selling fees for the second unit onward, compounding the benefits of the revised structure.