Online shopping will now be cheaper! Amazon extended the scope of zero referral fee, rules will change from March 16

There is news of great relief for online shoppers and small businessmen. Amidst intensifying competition in the e-commerce market, Amazon India has announced important changes in the fee structure. With this decision, not only can customers get goods at cheaper prices, but sellers selling on the platform will also directly benefit.

The company has announced that there will be a 20 percent reduction in shipping charges on products priced below Rs 300. This will reduce the costs of traders selling small and low-cost goods. It is believed that its effect will reach the customers also and they will be able to get products at lower prices.

Scope of zero referral fee increased

Zero referral fee has been extended for products priced between Rs 300 and Rs 1000 from March 16. Under this decision, about 1,800 categories of products have been included. Earlier, the company had removed referral fees on products priced below Rs 300. Now this relief is being extended to more categories.

What is the referral fee?

Referral fee is the commission that the platform charges on the sale of any product. Generally it can range from 2 percent to 16.5 percent of the price of the product. When these fees are reduced or eliminated, sellers’ earnings increase and they are able to sell goods at competitive prices.

Easy ship service also cut

Along with the change in fees, the company has also given relief on easy ship service. In this model, sellers keep the goods in their warehouse or shop, while the company handles the responsibility of pickup and delivery. Now Easy Ship charges have been reduced by 20 percent on products priced below Rs 300. This service has already been popular for new and small sellers, and may now become even more attractive due to the lower fees.

Other companies also ahead in competition

This race to reduce fees in the e-commerce market is not new. Last year, Flipkart started zero commission model on products priced below Rs 1000. Later it was extended to all products on its platform Shopsy. Earlier, Meesho had started zero-commission model in 2022. Its goal was to connect small and medium businessmen to the online market, especially in tier-2 and small cities.