Amazon India Announces Zero-Referral Fees on Over 125 Million Products

Massive Fee Reduction to Attract Sellers

Amazon India has announced a major expansion of its zero-referral fee policy, eliminating seller referral fees for products priced below ₹1,000. The new fee structure, set to take effect on March 16, 2026, now covers more than 125 million products on the marketplace. :contentReference[oaicite:1]{index=1}

How This Benefits Sellers

Referral fees are commissions that sellers pay to Amazon for each item sold. By removing these fees for low-priced products, the move aims to significantly reduce operating costs for small and mid-sized sellers. Amazon has said this will particularly help entrepreneurs and businesses in tier-2 and tier-3 cities across India. :contentReference[oaicite:2]{index=2}

Strategic Push in a Competitive Market

Analysts say the policy change is part of Amazon’s broader strategy to strengthen its position against stiff competition from rivals such as Walmart-owned Flipkart, Reliance Industries’ ventures, and quick commerce platforms. The earlier version of the zero-fee program that applied only to products under ₹300 led to a significant increase in new sellers joining the platform. :contentReference[oaicite:3]{index=3}

Additional Seller Support Measures

Alongside removing referral fees, Amazon India has also cut certain shipping charges, further lowering costs for sellers and encouraging them to offer more competitive pricing to consumers. The company continues to invest heavily in expanding its retail infrastructure and support services within the country. :contentReference[oaicite:4]{index=4}

Impact on E-commerce Landscape

Industry observers say these changes could spur stronger growth on Amazon India’s marketplace by attracting more sellers, increasing product diversity, and potentially driving down prices for customers. The move underscores the importance of India’s rapidly expanding e-commerce market to Amazon’s global operations. :contentReference[oaicite:5]{index=5}