E-commerce giant Amazon India is planning to impose zero referral fees on more than 12 million items listed on its platform that are priced under Rs.300.

This initiative is designed to assist small enterprises and foster the expansion of sellers on Amazon, according to reports.

Referral fees refer to the commission that Amazon charges sellers for every product that is sold.
“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,” says Amit Nanda, Director, Selling Partner Services, Amazon India.

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

The zero referral fees will apply to 135 different product categories, including clothing, footwear, fashion accessories, groceries, home décor and furnishings, beauty products, toys, kitchen items, automotive goods, and pet supplies, among others.

Additionally, Amazon has rolled out a new flat rate for sellers utilizing external fulfilment services such as Easy Ship and Seller Flex. The national shipping rates have now decreased to R. 65 from 77, according to reports.

Flat rate shipping is a pricing structure that charges a consistent fee for shipping packages, regardless of their weight, dimensions, or distance within set 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.

Additionally, Amazon has lowered handling fees for lightweight items under 1 kg by up to Rs. 17, which reduces the fees sellers pay.

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“Sellers shipping more than one product unit at a time stand to see up to 90 percent+ 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,” according to the company.