E-commerce company Amazon is focusing on expanding its business by lowering fees for sellers and reducing costs. Following a reduction in referral fees last year for products priced under ₹300, new seller registrations grew by 50% in the last fiscal year. The company has now extended the zero referral fee to products priced under ₹1,000, which has helped sustain this growth momentum. Additionally, Amazon is expanding its quick commerce platform, Amazon Now, which is currently available in Mumbai, Bangalore, and Delhi, with pilots underway in three more markets, including Chennai and Hyderabad.
“Within two weeks of the fee revision, we’ve seen strong traction from sellers,” Vikram Deshpande, Director of Product Management at Amazon India, said. The fee waiver announced in mid-March is expected to significantly lower selling costs, enabling broader participation and growth.
Key seller states for Amazon include Delhi, Gujarat, Uttar Pradesh, Maharashtra, and Rajasthan. In Maharashtra alone, Amazon has over 2,00,000 sellers and has experienced a 75% year-on-year growth in new seller registrations, according to Deshpande.
Massive Fee Waivers
The zero referral fee on products priced under ₹1,000 has expanded its coverage from 1.2 crore products in 2025 to 12.5 crore products. This price range includes home décor, kitchen essentials, fashion, electronic accessories, and personal care appliances. Additionally, there has been a 20% reduction in Easy Ship fees for products priced below ₹300, enabling sellers to save up to 70% in total fees. This allows sellers to reinvest in product selection, pricing, and customer acquisition. Many sellers are expanding their product listings and reinvesting their savings back into their businesses.
Siddharth Jain, co-founder and COO of Heelium, a seller on Amazon, noted that the cost reductions have improved cash flow, especially for their bootstrapped venture. “It allows us to reinvest more aggressively into scaling the business and launching new products,” Jain said, adding that a portion of the savings is also passed on to customers.
Boosting Seller Profitability
Deshpande said that Amazon has been investing in technology and expanding its fulfilment and delivery infrastructure to support this growth.
Under the new structure, sellers can benefit from significant per-unit savings. For instance, a seller offering a fashion jewellery necklace set priced at ₹999 through the Easy Ship channel will save ₹224 per unit, resulting in a 69% reduction in total fees—down from ₹324 to ₹100 per unit (under 500g). Similarly, earphones priced at ₹798 through the Fulfilled by Amazon channel will save ₹139 per unit, representing a 56% reduction in total fees from ₹248 to ₹109 per unit (under 500g). For a seller offering a T-shirt priced at ₹299 through the Easy Ship channel, there will be a savings of ₹15 per unit, a 21% reduction in total fees, which decline from ₹71 to ₹56 per unit (under 500g).