Amazon Slashes Seller Fees on Products Under ₹300 to Boost Business

An important move in further empowering small businesses and lowering access to affordable shopping is Amazon India's announcement regarding zeroing out referral fees on all products less than ₹300. The initiative covers over 1.2 crore items in different categories, signifying a considerable transformation in the e-commerce landscape.

Why This Move Matters

• Backing Small Enterprises: Remove referral fees and Amazon India reduces the sellers' costs incurred to enable more competitive pricing.
• Bouncing Back: With this development, more sellers are anticipated, thus increasing the number of products available to consumers.
• Augmented Affordability: Lesser fees and thereby lower shipping costs may result in better bargains for buyers, particularly on basic and everyday items.
  Official Statement

“By eliminating referral fees on crores of products and reducing shipping costs, we’re making it more lucrative for sellers to sell on Amazon.in. This initiative supports seller growth on Amazon by enabling them to offer a wider selection and present more competitive offers to customers, particularly on everyday low-value items,” said Amit Nanda, Director, Selling Partner Services, Amazon India.

“As we gain efficiencies in our operations, we ensure those benefits reach our sellers and customers,” Nanda added.

Imparted Advantages Across 135+ Categories

'This structure of zero referral fee has been applied to a variety of 135+ product categories that include:
•    Apparel
•    Shoes
•    Fashion Jewellery
•    Grocery
•    Home and Household
•    Beauty products
•    Toys
•    Kitchen stuffer
•    Automotive accessories
•    Pet supplies

Reducing Shipping and Handling Costs

Further relieving sellers' financial burdens given shipping costs, Amazon has also declared a lower unified shipping for sellers using 3rd party services, including Easy Ship and Seller Flex:

•    National shipping rates now start at ₹65 instead of ₹77.
•    Handling fees for lightweight items under 1 kg have reduced the charges by ₹17.
•    For multi-item shipments, the selling fees are waived on the second unit shipped together by up to about 90%+.

Understanding Easy Ship and Seller Flex:

• Easy Ship: Amazon picks up directly from sellers. Then deliver the packages to the customers.
• Seller Flex: Part of the seller's warehouse managed by Amazon is an Amazon fulfillment center for seamless logistics.

These new fee structures and shipping discounts would go into effect officially on April 7, 2025.
With over 1.6 million sellers on board, the latest policy update from Amazon India is expected to generate healthy growth in online retail, resulting in subsequent benefits for businesses and consumers alike. This positions Amazon's strategic relevance in what is developing as a new e-commerce ecosystem in India, while bringing within the reach of millions more shoppers affordable, accessible, and convenient alternatives.