Amazon Sees India as Long-Term Growth Market, Expands Zero Referral Fee Coverage
New Delhi, March 22: Amazon continues to position India as a key long-term investment destination, highlighting that the country’s e-commerce sector remains in its early stages with significant headroom for expansion. The company pointed to strong macroeconomic fundamentals and positive consumer sentiment as key drivers supporting future growth.Strong Seller Response to Expanded Zero Referral Fee Initiative
Abhinav Singh, Vice President of Operations for India and Australia at Amazon, said the company has received an encouraging response from sellers following its decision to expand its zero referral fee program. The initiative now covers 12.5 crore products, a sharp increase from 1.2 crore items in 2025.According to Singh, sellers have reacted positively not only to the reduction in fees but also to the broader impact on pricing and profitability. He noted that sellers are leveraging the cost savings to offer more competitive prices to customers while also improving their own margins.
“The response from sellers has been very encouraging. They are excited not just about the reduced fees, but also about being able to pass those savings on to customers, allowing customers in the marketplace to enjoy better prices. At the same time, from a seller's perspective, they can improve their profit margins,” he said.
India’s E-commerce Market Still in Early Phase
Amazon maintains a strong long-term outlook on India, underpinned by structural advantages within the retail ecosystem. Singh emphasized that e-commerce currently represents only a small portion of the overall retail market, indicating substantial untapped potential.“We are confident that being in India is a long-term investment. Retail and, within that, e-commerce is just getting started. It represents a small percentage of the overall retail market, but there is tremendous potential for growth,” he added.
Positive Consumer Sentiment Supports Growth Outlook
The company underscored that India’s economic environment and consumer demand trends continue to support its expansion strategy. With improving sentiment and increasing digital adoption, Amazon sees sustained opportunities to scale its marketplace operations in the country.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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