Amazon Cuts Seller Fees in India to Accelerate Marketplace Growth

Published: 2 Mar 2026

Amazon has announced a major reduction in seller costs in India by removing referral fees on lower-priced products. The move is aimed at attracting more merchants, particularly small businesses, as competition in the country’s rapidly growing e-commerce market intensifies.

Referral Fees Waived on Millions of Products

Amazon said it will stop charging referral fees on items priced below 1,000 rupees, expanding a policy first introduced last year. Referral fees are commissions sellers pay for each product sold on the platform.

The updated structure will come into effect on March 16 and will apply to more than 125 million products. Amazon also confirmed that it is reducing select shipping charges as part of the overhaul.

Boost for Small Sellers and Regional Businesses

According to Amazon India, the decision is designed to make online selling more profitable and easier, particularly for entrepreneurs and small businesses in Tier 2 and Tier 3 cities. Company executives said the earlier zero-fee initiative helped drive a sharp increase in new seller sign-ups across the platform.

India has become a key growth market for Amazon due to its rapidly expanding internet user base and rising online shopping adoption.

Fierce Competition in Indian E-Commerce

Amazon faces strong competition from Flipkart, backed by Walmart, as well as Reliance Retail, the retail arm of billionaire Mukesh Ambani’s conglomerate. Quick commerce platforms are also gaining ground, reshaping how consumers shop for everyday goods.

With lower fees and reduced logistics costs, Amazon is betting that more sellers will choose its marketplace, helping the company strengthen its position in one of the world’s most competitive e-commerce landscapes.

Source:

Reuters