Amazon India has Announced Its Largest-Ever Reduction in Seller Fees

Amazon India has announced its largest-ever reduction in seller fees, a strategic move to bolster its position amid increasing competition in the domestic e-commerce landscape. The company will implement zero referral fees on over 12 million products priced below Rs 300, covering 135 categories such as fashion, jewelry, grocery, home furnishings, and beauty. Previously, referral fees ranged from 2% to 14.5%. These changes are set to take effect on April 7, 2025.

This initiative comes as Amazon faces stiff competition from platforms like Meesho, which operates on a zero-commission model, and the rising popularity of quick commerce channels that threaten to capture market share. Amit Nanda, Director of Selling Partner Services at Amazon India, emphasized the company's commitment to supporting sellers, stating, "When our sellers succeed, we succeed." He noted that as Amazon achieves cost efficiencies, it aims to pass those benefits on to its selling partners.

To further incentivize sellers, Amazon will offer up to 90% savings on selling fees for those shipping multiple units at once. Additionally, the company has reduced weight handling fees for items under 1 kg to Rs 17 and introduced a simplified flat rate for sellers using external fulfillment channels, lowering national shipping rates from Rs 77 to Rs 65.

These changes come as Amazon pilots its quick commerce service, Amazon Now, in Bengaluru, focusing initially on beauty and home categories after establishing its grocery offerings.