Amazon India Removes Referral Fees on Products Below Rs 300
Amazon India has made the announcement to eliminate referral fees on more than 1.2 crore products that cost less than Rs 300, its biggest fee cut so far. The move is to benefit lakhs of small businesses that sell on Amazon.in by doing away with the 2-4% commission earlier levied on every sale. The zero referral fees now extend to 135+ product categories, making it more profitable for sellers to list and sell low-cost products on the platform.
Amit Nanda, Selling Partner Services Director, Amazon India, pointed to the focus of the company on empowering sellers. "This effort aids seller growth by helping them provide greater selection and show more competitive deals to customers, especially on day-to-day low-value products", he stated.
In addition to this fee exemption, Amazon India has also launched a flat rate of reduced complexity for sellers who avail external fulfillment services like Easy Ship and Seller Flex. National shipping rates have been reduced to Rs 65 from Rs 77, a 16% cut. While Easy Ship enables Amazon to pick up packages from a seller's premises and ship them, Seller Flex allows Amazon to utilize a part of sellers' warehouses as fulfillment centers.
Additionally, Amazon has reduced weight handling charges on light-weight items (less than 1 kg) by a maximum of Rs 17, cutting the cost incidence for sellers overall. Sellers shipping more than one unit in one order can gain more than 90% off the second unit in selling charges. These updated fee levels will be applicable from April 7, 2025.
Amazon's latest move comes at a time when the e-commerce arena is competitive in nature, as online marketplaces are adding diverse platform-related charges to sellers as well as customers for boosting profitability. Amazon charges customers a processing fee of Rs 49 and more seller fees as of now, including storage as well as handling weight charges.
Meanwhile, alternative online marketplaces like Shopify, ONDC, and social media sites like Instagram, Facebook, and WhatsApp are increasingly providing small businesses with several channels to sell online. Amazon's move to cut referral fees and lower shipping charges may be a strategic reaction to these new competitors.
With these new developments, Amazon anticipates sellers to gain significant cost savings, enabling them to increase product offerings and negotiate improved deals for consumers. As the online retail giant achieves operational efficiencies, it hopes to share these gains with sellers, reinforcing its position as a preferred online marketplace.
