US-based retailer Amazon will remove referral fees on products priced below 1,000 rupees ($10.94) in India from March 16, covering more than 125 million items.
The policy marks a tenfold expansion of last year’s exemption, which applies to over 12 million products in 135 categories priced below Rs 300.
Amazon India said the revamped structure could reduce total selling fees for merchants by 70%.
In addition, easy shipping charges will be reduced by more than 20% for items priced below Rs 300.
The company said its upfront fee waiver for sub-Rs 300 products has helped boost its dealer base to nearly 1.7 million, with significant growth in Tier 2 and Tier 3 cities and new dealer registrations.
Wide exemptions on everyday merchandise including clothing, electronics, household goods and toys.
Amazon said fashion jewelry priced at Rs 999 shipped via EasyShip will save sellers Rs 224 per unit, a 69% fee reduction, while earphones priced at Rs 798 fulfilled by Amazon can save Rs 139 per unit, or 56%.
Easy Ship is Amazon’s India-exclusive fulfillment service where sellers ship from their location, and Amazon handles the collection and delivery.
The company said the latest cuts are meant to lower barriers to entry for new vendors and allow existing merchants to reinvest savings in their businesses.
Amazon added that it has developed AI-based tools to streamline seller activities such as listing, managing inventory and analyzing customer data.
In its statement, the company said: “This reduction in fees reduces the barriers for new sellers considering their first listing on Amazon.
“For consumers, this means more choice and better value. For India, it means more small businesses confidently participating in the digital economy, and more entrepreneurs in small towns and cities seeing e-commerce as a viable, sustainable way to grow.”
“Amazon India Expands Seller Fee Cuts to Drive Retail Growth” was originally developed and published by Retail Insight Network, a brand owned by Global Data.
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