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Home Digital Frontier

Amazon India expands Zero Referral fees to 12.5 crore products, sellers to save up to 70%

by MN4U Bureau
March 2, 2026
in Digital Frontier
Reading Time: 3 mins read
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Amazon India expands Zero Referral fees to 12.5 crore products, sellers to save up to 70%
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Bengaluru: Amazon India has announced a major revision in its seller fee structure, expanding zero referral fees coverage more than tenfold — from 1.2 crore products in 2025 to over 12.5 crore products in 2026. The zero referral fee now applies to products priced under ₹1,000 across 1,800+ categories, including t-shirts, shoes, earphones, bed sheets, sarees, electric kettles, coffee tables, chairs, pet accessories, fashion jewellery and toys, among others.

In addition, the company has reduced Easy Ship fees by over 20% for products priced below ₹300. Easy Ship enables sellers to store products at their own premises while Amazon manages pickup and delivery, making it a cost-effective option for small businesses and emerging entrepreneurs. Sellers shipping multiple units in a single box can also save over 90% on fees for the second unit, further improving margins.

The revised fee structure will come into effect from March 16, 2026, and is aimed at enhancing profitability and operational ease for lakhs of sellers across India. The move follows strong seller momentum on the platform, with a reported 50% year-on-year growth in new sellers joining Amazon.in.

Amit Nanda, Director, Selling Partner Services, Amazon India, said, “Building on the strong impact of last year’s fee reductions, we are now expanding that commitment to benefit a much larger cohort of sellers. This move is designed to make selling on Amazon.in more lucrative and simpler particularly for small businesses and entrepreneurs in Tier 2 and Tier 3 cities. 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.”

Echoing the impact of previous fee changes, Ashish Agarwal, Co-Founder – Earthen Story, and a seller on Amazon.in said, “As a small business in Bengaluru, every rupee counts—and we’ve been relentlessly aggressive on Amazon ads, inventory optimization, and every growth lever to scale fast. When Amazon axed referral fees on products under ₹300 last year, it was a game-changer: it suddenly made low-priced heroes like single seed packs, moringa powders, and specialty flours viable to sell profitably for the first time. No more sidelining these high-demand items—we listed them aggressively, and the savings let us crank up ad spends like never before, now that pricing finally pencils out. The result? 50% explosive growth, with more momentum to conquer even bigger categories. For hustlers like us, this wasn’t just a fee tweak; it was pure rocket fuel giving us the edge to dominate.”

Sellers on Amazon.in can choose from three fulfilment models: self-ship, Easy Ship (ES), or Fulfilled by Amazon (FBA/FC), where Amazon manages storage, packing and shipping.

Illustrative savings under the revised structure include:

  • A seller offering a fashion jewellery necklace set priced at ₹999 via Easy Ship can save ₹224 per unit — a 69% reduction in total fees, with fees dropping from ₹324 to ₹100 (product weight under 500g).
  • A seller selling earphones priced at ₹798 through Fulfilled by Amazon can save ₹139 per unit — a 56% reduction in total fees, with fees decreasing from ₹248 to ₹109 (product weight under 500g).
  • A seller selling a T-shirt priced at ₹299 via Easy Ship can save ₹15 per unit — a 21% reduction in total fees, reducing fees from ₹71 to ₹56 (product weight under 500g).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tags: Amazon IndiaAmit NandaAshish Agarwal

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