Amazon India has introduced a sweeping reduction in seller fees, calling it a ‘structural fee change’ designed to boost small businesses and across the country. The ecommerce major has announced zero referral fees on over 12.5 crore products priced under Rs 1,000 expanding coverage more than tenfold from 1.2 crore items last year. The new policy applies to products under Rs 1,000 across more than 1,800 categories which also include daily essentials like t-shirts, shoes, earphones, bed sheets, sarees, electric kettles, coffee tables, pet accessories, fashion jewellery, toys and more. Sellers now stand a chance to save up to 70% in fees, making low-priced items more profitable to list and sell.
Logistics and fee reductions
Amazon also cut Easy Ship fees by over 20% for products under Rs 300. The Easy Ship enable the sellers to store products at their own premises while Amazon manages pickup and delivery, reducing upfront logistics costs. Along with this, sellers shipping multiple units in one box can save 90%+ on fees for the second unit, further improving margins.
Seller momentum
The changes from Amazon comes amid strong growth, with Amazon reporting a 50% year-over-year increase in new sellers joining its platform. Amit Nanda, Director of Selling Partner Services at Amazon India, said: “By eliminating referral fees across 1,800+ categories covering over 12.5 crore products, and reducing logistics costs, sellers can save up to 70% in fees. Together, these changes reflect Amazon’s continued effort to pass operational efficiencies back to sellers and customers.”
Seller reactions
Small businesses have welcomed the move. Ashish Agarwal, Co-Founder of Earthen Story, said last year’s fee cuts were transformative: “When Amazon axed referral fees on products under ₹300, it was a game-changer. It suddenly made low-priced heroes like seed packs and specialty flours viable to sell profitably. The savings let us crank up ad spends like never before, fueling 50% explosive growth.”Examples of per-unit savings effective March 16, 2026 include:
- A fashion jewellery necklace set priced at ₹999 via Easy Ship will save ₹224 per unit — a 69% reduction.
- Earphones priced at ₹798 via Fulfilled by Amazon will save ₹139 per unit — a 56% reduction.
- A T-shirt priced at ₹299 via Easy Ship will save ₹15 per unit — a 21% reduction.
