Amazon India Eliminates Referral Fees to Boost Seller Savings

Amazon India has made a significant announcement, detailing the removal of the referral fee, also known as the seller fee, on over 1.2 crore products priced under Rs 300 across more than 135 categories on its e-commerce platform. This shift is set to take effect from April 7, 2025.

The referral fee, which starts at 2 per cent, is a commission that Amazon collects from sellers for each product sold through its platform. With over 16 lakh sellers currently active, Amazon India aims to enhance the selling environment for its partners.

Additional Fees and Savings for Sellers

In addition to eliminating the referral fee, Amazon India also imposes closing fees and weight handling or shipping fees. Sellers might face extra charges depending on the fulfillment method, programme, or service utilized, such as pick and pack fees, storage fees, and Fulfillment by Amazon (FBA) removal fees.

Apart from removing the referral fee, Amazon has announced reduced shipping costs to provide further savings for sellers. According to their latest updates, a flat shipping rate has been introduced for sellers using external fulfillment options like Easy Ship and Seller Flex. The national shipping rates have been lowered to start at Rs 65, compared to the previous Rs 77.

Lowering Costs on Lightweight Items

Amazon India has also decreased weight handling fees for lightweight products weighing less than 1 kg by as much as Rs 17, contributing to a further decline in the total charges that sellers face on the marketplace.

Sellers dispatching multiple product units in one shipment are anticipated to experience savings of up to 90 per cent on selling fees for the second unit. Furthermore, the company had previously reduced seller fees—ranging from 3 to 12 per cent—for 59 product categories back in September 2024.