In a major move to strengthen India’s e-commerce ecosystem, Amazon India has announced that it will waive referral fees on products priced up to ₹1,000. The new policy will come into effect from March 16, offering significant relief to small sellers and new entrepreneurs.
Referral fees are commissions that sellers pay to Amazon on each product sold through its platform. With this decision, sellers listing products under ₹1,000 will no longer have to pay this commission, reducing their operational costs and improving margins.
Expansion of ‘Zero Referral Fee’ Policy
Amazon had earlier introduced a zero referral fee policy for products priced up to ₹300 on nearly 1.2 crore items. Following the implementation of this initiative, the company reported a 50% rise in new seller registrations across India.
Building on that success, Amazon has now expanded the benefit to over 12.5 crore products priced up to ₹1,000, significantly widening the scope of the policy.
Focus on Tier-2 and Tier-3 Cities
According to Amit Nanda, Director, Selling Partner Services at Amazon India, the move aims to make online selling more profitable and accessible, especially for small businesses in Tier-2 and Tier-3 cities.
In addition to removing referral fees, the company has also reduced certain shipping charges, further lowering the overall cost burden on sellers.
India: A Key Growth Market for Amazon
India has emerged as one of the fastest-growing markets for Amazon, driven by increasing internet penetration and rising online shopping adoption. However, the company faces intense competition from major players such as:
- Flipkart
- Reliance Retail
- Blinkit
- Swiggy Instamart
The waiver of referral fees is seen as a strategic step to strengthen Amazon’s seller base amid growing competition in India’s online retail sector.
₹35 Billion Investment Commitment by 2030
In December, Amazon announced plans to invest over $35 billion in India by 2030, focusing on AI infrastructure, logistics expansion, and empowering small businesses.
What This Means for Sellers and Consumers
The elimination of referral fees up to ₹1,000 is expected to:
- Increase profit margins for small sellers
- Encourage more entrepreneurs to join the platform
- Expand product variety for customers
- Intensify competition in India’s e-commerce market
With this move, Amazon aims to accelerate seller growth and deepen its footprint in India’s rapidly evolving digital marketplace.
