Amazon Eliminates Referral Fees for Products Under ₹1,000 to Strengthen India E-Commerce Push
Amazon Expands Zero-Referral Fee Policy to 125 Million Products
Amazon on Monday announced that it will stop charging Indian sellers referral fees on products priced under ₹1,000, a significant step aimed at attracting more merchants and deepening its presence in India’s highly competitive e-commerce market.The move builds on Amazon’s existing zero-referral fee policy introduced last year, which covered nearly 12 million products priced below ₹300. That initiative resulted in a 50 percent increase in new seller registrations on Amazon in India. Referral fees are commissions paid by sellers to Amazon for each product sold on the platform.
With the latest revision, effective March 16, the zero-referral fee structure will now apply to more than 125 million products, substantially widening the scope of cost savings for sellers. Alongside this change, Amazon also confirmed a reduction in certain shipping charges.
Amit Nanda, Director of Selling Partner Services at Amazon India, stated that the initiative is intended to make selling on Amazon more profitable and simpler, particularly for small businesses and entrepreneurs operating in tier 2 and tier 3 cities.
India Emerges as Strategic Growth Market for Amazon
India has become a critical growth market for Amazon, supported by a rapidly expanding internet user base that continues to drive online shopping adoption across the country. The world’s most populous nation represents a long-term opportunity for global e-commerce players seeking sustained volume growth.However, competition remains intense. Amazon faces strong rivalry from Flipkart, backed by Walmart, as well as the retail arm of billionaire Mukesh Ambani’s Reliance Industries. At the same time, quick commerce platforms such as Blinkit, owned by Eternal, and Swiggy’s Instamart are rapidly expanding their market share.
$35 Billion Investment Plan Through 2030
In December, Amazon outlined plans to invest more than $35 billion in India by 2030. The investment will focus on expanding artificial intelligence infrastructure, strengthening retail logistics capabilities, and supporting the growth of small businesses across the country.By eliminating referral fees on a wider range of products and easing cost structures for sellers, Amazon is sharpening its strategy to increase merchant participation, improve marketplace competitiveness, and reinforce its long-term commitment to the Indian e-commerce ecosystem.
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