Amazon India Waives Referral Fees on Items Under Rs 1000 Until Year-End, Boosting Small Seller Growth

Amazon India has announced that it will continue the waiver of referral fees on products priced below Rs 1,000 through the end of December 2025. Referral fees, which typically range from 2% to 16.5% depending on the category, are commissions charged for every sale on the platform. This extension follows a similar zero-commission move by Flipkart, intensifying competition in India’s ecommerce sector.

The referral fee waiver is designed to stimulate the onboarding and growth of small and micro sellers by lowering their overall selling expenses. Additionally, Amazon India has implemented reductions in shipping and weight handling fees, further improving cost efficiency. Initiatives like Amazon Bazaar—dedicated to low-ticket items—have seen substantial growth in both sellers and customers, signaling rising demand in tier-2 and tier-3 cities.

Experts believe this fee waiver will incentivize offline and small-scale sellers to embrace online selling, expanding product choices for consumers and strengthening Amazon’s ecosystem. The move also supports broader inclusion of diverse sellers during the high-demand festive period.

Key Highlights:

Referral fees waived for all products priced below Rs 1,000 until December 31, 2025

Typical referral fees range between 2% and 16.5% based on category

Followed Flipkart’s zero-commission model for low-cost products

Amazon India reduced shipping and handling fees for lightweight items

Amazon Bazaar app's seller base grew sixfold since launch, customer base eightfold

Expected to encourage small sellers and expand product variety, especially in smaller cities

Source: Economic Times, Business Standard, Amazon India, Ainvest