Amazon Expands Zero Referral Fee Programme To Products Under ₹1,000

SUMMARY

Amazon India has expanded its zero referral fee programme to cover 12.5 Cr products priced under ₹1,000

The ecommerce giant will also reduce Easy Ship fees by more than 20% for products priced below ₹300

The company claims the move could help sellers save up to 70% on total selling fees

After introducing zero referral fees on select low-priced products last year, Amazon India has now expanded the programme, slashing referral fees on products priced under ₹1,000 across more than 1,800 categories to zero.

The move, aimed at drawing more merchants to its online marketplace and strengthening its foothold in the country’s competitive ecommerce industry, will be effective March 16. Amazon India will also reduce Easy Ship fees by more than 20% for products priced below ₹300. The company claims this could help sellers save up to 70% on total selling fees.

Easy Ship allows sellers to store products at their own premises, with Amazon handling pickup and delivery. Meanwhile, referral fees is the commission charged to sellers for each item sold on the platform, typically ranging between 2% and 16.5% of a product’s price.

Notably, in April 2025, Amazon India waived seller referral fees for items priced below ₹300. The earlier rollout applied to roughly 1.2 Cr products and helped drive a 50% year-on-year increase in new seller registrations, the company said.

In November 2025, the ecommerce giant removed referral fees for items priced below ₹1,000 until December 31, with plans to extend the initiative based on seller feedback. With the latest expansion, the zero referral fee programme now covers more than 12.5 Cr products, up from about 1.2 Cr in 2025.

“This move is designed to make selling on Amazon.in more lucrative and simpler particularly for small businesses and entrepreneurs in tier II & III cities,” said Amit Nanda, director, selling partner services, Amazon India.

The development comes at a time when competition in India’s ecommerce market is intensifying, with platforms rolling out aggressive incentives to attract sellers and strengthen their appeal among price-sensitive shoppers. While Flipkart and Amazon India continue to dominate the market, Meesho has also cemented its position as one of the giants in the space.

In November last year, Walmart-owned Flipkart introduced a zero commission model for products priced below ₹1,000 and later extended it to all items on its hyper-value platform Shopsy, regardless of price.

Meesho was the first to roll out a zero-commission model in 2021, removing entry barriers for sellers. This strategy helped Meesho, which went public in December last yearcapture about 37% of India’s ecommerce orders by FY25.

With rising digitisation and increasing use of smartphones, the ecommerce segment in the country is growing at a rapid pace. The sector is estimated to clock 19% CAGR between 2024-2030 to reach a size of over $400 Bn by the end of the period. Amazon, Flipkart and Walmart are competing to attract sellers and customers in this burgeoning market.

Comments are closed.