Amazon India has announced a reduction in selling fees—ranging from 3 to 12%—for 59 product sub-categories on the marketplace. This revision, effective September 9, 2024, will further strengthen Amazon’s partnership with sellers of all sizes and provide sellers a timely boost as they prepare for the upcoming festive season.
Seller fee changes in numbers
The new rate card will particularly benefit sellers offering affordable products priced below ₹500. For instance, a seller offering printed T-shirts at ₹299 will now pay a reduced referral fee of just 2%, a substantial drop from the previous fee of 13.5%, resulting in savings of ₹34 per unit for the seller. The selling fee reductions apply across a wide range of product segments, such as home furnishing (9% drop), indoor lighting (8% drop) and home products (8% drop). Referral fees will also be reduced in low-priced products across apparel, kitchen, wireless accessories, office products, sports, shoes, luggage, pet, jewelry, beauty, watches, and other categories. Also, weight handling fee for fulfillment centres and Amazon fulfilment programs such as Seller Flex and Easy Ship have been revised basis sellers’ applicable STEP* levels.
Small and medium businesses on Amazon.in to benefit
The selling fee revision reflects Amazon’s seller-first approach and commitment to make Amazon.in India’s most preferred marketplace for selling.
At Amazon, we are invested in supporting businesses of all sizes, from small and medium businesses to emerging entrepreneurs to established brands. The fee reduction is directly in response to feedback from our sellers, especially small businesses.
“With this, we’re taking a significant step towards creating a more seller-friendly ecosystem," Nanda adds.
While the timing of the fee cuts aligns with the festive season, Amazon underscores that these changes are not temporary measures. The fee decrease will give sellers an opportunity to optimize their operations in time for the Diwali shopping rush and set the stage for sustained success well beyond the festivities.
“Sellers, particularly those selling affordable products, will experience a significant decrease in fees on Amazon. This will provide them with an opportunity to reinvest in their business for accelerated growth. We’re confident these changes will lead to unprecedented results for our sellers during the upcoming festive season and beyond,” says Nanda.
Will the selling fee revision make shopping cheaper? How will this impact customers?
As a marketplace, Amazon.in does not have any role in the setting of prices and all price changes are the prerogative of the seller. But the selling fee revision will help sellers expand their product portfolio on Amazon.in and grow their business.
*STEP is a performance-based reward program which evaluates sellers on 5 key customer input metrics and classifies them into one of the 4 levels—Basic, Standard, Advanced and Premium. Each level comes with a plethora of rewards/benefits such as weight handling fee waiver, shorter payment reserve, faster payment disbursement, free account management and more. New sellers start at Standard level and move across the level based on their performance on the 5 STEP metrics.
