Amazon India announces its highest ever reduction in referral fees
Hyderabad, May 2 (UNI) Amazon India on Friday said it has recently announced its highest ever reduction in referral fees to support lakhs of small businesses selling on Amazon.in from across the country.
Starting April 7, 2025, the company has introduced zero referral fees on over 1.2 crore products that are priced below ₹300, said Gaurav Bhatnagar, Director – Sales at Amazon India, in a press conference here.
For each product sold, a referral fee is applicable which varies by product category and is calculated as a percentage of the total selling price of the product, he said the zero referral fees apply to more than 135 product categories. Amazon has also brought in a simplified flat rate for sellers using external fulfilment channels like Easy Ship and Seller Flex with national shipping rates now starting at ₹65, down from ₹77, he informed.
To enhance seller experience, the e-commerce giant is making significant investments in Technology, logistics, delivery and payment systems, he said over the years, Amazon has invested in creating a robust fulfilment and delivery infrastructure across India and in Telangana.
Furthermore, over the last few years, Amazon has been leveraging Generative AI and machine learning to help sellers with better listing and customer engagement on its marketplace, he informed and adding that they have also introduced the Gen AI powered Listing Experience, enabling sellers to create high-quality product listings by simply providing a product image, description or Brand website URL.
Today it has 6 large Fulfilment Centers and 1 sortation centre with over 1.75lakh sq. ft of processing area in Telangana.Additionally, it has close to 70 Amazon-owned and Partner Delivery Stations and close to 1800 'I Have Space' stores, he said.
Additionally, the Company has reduced the weight handling fees for lightweight items under 1 kg by up to ₹17, lowering the overall fees that sellers pay to Amazon, he said and adding that the sellers shipping more than one product unit at a time stand to see up to 90 per cent savings in selling fees on the second unit. These changes will enable sellers to offer a wider selection, more competitive prices and grow their business.
Of 16 lakh sellers across the country, over 50,000 sellers from Telangana selling on Amazon.in, he said thousands of sellers in Hyderabad and neighboring cities selling Home & Kitchen, BISS, Furniture, Sports, Home Improvement amongst other products below ₹300 are already seeing benefits.
By eliminating referral fees on crores of products and reducing weight handling fees, we're making it more lucrative for sellers to grow on Amazon.in. This vibrant region contributes significantly to our network of 16 lakh+ sellers across India and we remain committed to enabling small businesses from tier 2, 3, and 4 towns to thrive in the digital economy, said Gaurav.
This initiative allows sellers to offer wider selection and more competitive prices, particularly on everyday low-value items, he added.
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