In a move aimed at empowering small businesses and encouraging seller growth, Amazon India on Monday announced a complete waiver of referral fees on more than 1.2 crore products priced below Rs 300. The decision is designed to make online selling more affordable for emerging sellers and micro-entrepreneurs across the country, the company said in an official statement.
The referral fee is a commission charged by Amazon on each product sold through its platform. It has often been a concern for low-margin sellers. "By eliminating referral fees on crores of products and reducing shipping costs, we are 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. As we gain efficiencies in our operations, we ensure those benefits reach our sellers and customers," Amit Nanda, Director of selling Partner Services, Amazon India, said.
Check zero referral fees product categories
The zero referral fees would be applicable across 135 product categories like apparel, shoes, fashion jewellery, grocery, home décor and furnishings, beauty, toys, kitchen products, automotive, and pet products among others. Amazon has also introduced a new flat rate for sellers using external fulfilment services like Easy Ship and Seller Flex. The national shipping rates now start at Rs 65, reduced from Rs 77, according to the statement.
Flat rate shipping is a pricing model where a fixed cost is charged for shipping packages, regardless of their weight, size, or distance within defined limits. While Easy Ship is a fulfilment channel where Amazon collects packages from a sellers' location and delivers them to customers, as part of Seller Flex, Amazon manages a portion of the sellers' warehouse as an Amazon fulfilment centre.
Amazon reduces product handling fees
Additionally, Amazon has lowered handling fees for lightweight items under 1 kg by up to Rs 17, which reduces the fees sellers pay. "Sellers shipping more than one product unit at a time stand to see up to 90 per cent+ savings in selling fees on the second unit. These changes will enable sellers to offer a wider selection, competitive offers and grow their business. The revised fees come into effect from April 7, 2025," the company said.
(With PTI inputs)
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