From 1.2 crore products in 2025 to 12.5 crore in 2026, Amazon India has increased its zero referral fee coverage by more than ten times. Amazon Seller Services Private Ltd, a subsidiary of Amazon.com, Inc., runs the Amazon.in marketplace.
In an effort to boost growth for the millions of sellers in the nation, Amazon India announced a historic fee decrease on Monday. The company has increased the coverage of zero referral fees by more than 10 times, from 1.2 crore products in 2025 to over 12.5 crore products priced under Rs 1,000 across more than 1,800 categories, building on last year’s fee modification.
Additionally, Amazon has lowered Easy Ship costs for items under Rs 300 by more than 20%.
Due to its lower upfront logistics expenses, Easy Ship is a favorite option for sellers beginning or expanding their e-commerce journey because it enables them to store products at their own locations while Amazon takes care of pickup and delivery. To further increase overall savings, sellers who ship several items in a single package can save up to 90% on selling fees for the second product.
The updated fees will take effect on March 16, 2026.
We are now extending that pledge to help a substantially larger cohort of sellers, building on the significant impact of last year’s fee reductions. This change is intended to make selling on Amazon.in easier and more profitable, especially for small enterprises and entrepreneurs in Tier 2 and Tier 3 cities. Sellers can save up to 70% in fees by removing referral fees for over 12.5 crore products across 1,800+ categories and cutting down on shipping expenses. Amit Nanda, Director, Selling Partner Services, Amazon India, stated that these modifications collectively demonstrate Amazon’s ongoing efforts to transfer operational efficiencies back to sellers and customers.
We’ve been aggressively aggressive on Amazon marketing, inventory optimization, and every growth lever to scale quickly since, as a tiny firm in Bengaluru, every rupee counts. For the first time, low-cost heroes like single seed packs, moringa powders, and specialty flours could now be sold profitably after Amazon eliminated referral fees on products under Rs 300 last year, according to Ashish Agarwal, co-founder of Earthen Story and an Amazon.in seller.
“Now that pricing is actually penciling out, we can increase ad spending like never before because we listed these high-demand commodities aggressively and saved money. The outcome? 50% rapid expansion, with further drive to take on even larger categories. Agarwal continued, “This wasn’t just a fee adjustment for hustlers like us; it was pure rocket fuel giving us the edge to dominate.”
Amazon sellers.There are three options for fulfillment: ship orders directly to customers; use Easy Ship (ES), where products are stored at the customer’s location and Amazon takes care of pickup and delivery; or choose Fulfilled by Amazon (FBA/FC), where Amazon takes care of shipping, packing, and storage.
Here are a few illustrative examples of potential per-unit savings effective March 16, 2026:
- A seller offering a fashion jewellery necklace set priced at Rs 999 through the Easy Ship (ES) channel will save Rs 224 per unit — a 69% reduction in total fees. Total fees will decrease from Rs 324 to Rs 100 per unit (product weight under 500g).
- A seller selling earphones priced at Rs 798 through Fulfilled by Amazon (FC) channel will save Rs 139 per unit — a 56% reduction in total fees. Total fees will drop from Rs 248 to Rs 109 per unit (product weight under 500g).
- A seller selling a T-shirt priced at Rs 299 through the Easy Ship (ES) channel will save Rs 15 per unit — a 21% reduction in total fees. Total fees will reduce from Rs 71 to Rs 56 per unit (product weight under 500g).
For more details on the updated fees, please click here.
The Amazon.in marketplace is operated by Amazon Seller Services Private Ltd, an affiliate of Amazon.com, Inc.
Amazon India Zero Referral Fee Update – FAQ (2026)
1. What is the latest announcement by Amazon India regarding referral fees?
Amazon India has increased the coverage of zero referral fees by more than 10 times, from 1.2 crore products in 2025 to over 12.5 crore products priced under Rs 1,000 across 1,800+ categories. This change aims to make selling on Amazon.in easier and more profitable, especially for small businesses.
2. When will the updated fees come into effect?
The updated zero referral fees and reduced Easy Ship costs will take effect on March 16, 2026.
3. What products are eligible for zero referral fees?
Products priced under Rs 1,000 across more than 1,800 categories are eligible for zero referral fees.
4. What is the expected savings for sellers?
Sellers can save up to 70% in fees, including referral fee waivers and lower shipping costs, especially for small-ticket products.
5. Has Amazon made changes to Easy Ship costs?
Yes. Easy Ship costs for items under Rs 300 have been reduced by over 20%, helping sellers save on logistics while reaching customers efficiently.
6. What is Easy Ship, and why is it popular among sellers?
Easy Ship allows sellers to store products at their own locations while Amazon manages pickup and delivery. It reduces upfront logistics costs and is especially useful for small or new sellers.
7. Can sellers save more by shipping multiple items together?
Yes. Sellers who ship multiple items in a single package can save up to 90% on selling fees for the second product, maximizing overall profitability.
8. Are the fee reductions limited to any specific regions?
No. These benefits apply to sellers across India, with a focus on helping small enterprises and entrepreneurs in Tier 2 and Tier 3 cities.
9. Who confirmed the fee updates at Amazon India?
Amit Nanda, Director, Selling Partner Services, Amazon India, stated that these changes reflect Amazon’s efforts to transfer operational efficiencies back to sellers and customers.
10. How are small-scale sellers benefiting from the zero referral fee policy?
Small sellers offering products like single seed packs, moringa powders, and specialty flours can now sell profitably, reinvest savings in marketing, and scale their businesses rapidly.
11. What fulfillment options are available for Amazon sellers?
Sellers can choose from three fulfillment methods:
Direct Shipping: Ship orders directly to customers.
Easy Ship (ES): Products stored at the seller’s location, with Amazon handling pickup and delivery.
Fulfilled by Amazon (FBA/FC): Amazon handles storage, packing, and shipping.
12. Can you give examples of per-unit savings?
Yes, effective March 16, 2026:
Fashion jewellery necklace set (Rs 999, ES): Fee reduces from Rs 324 to Rs 100 per unit — 69% savings.
Earphones (Rs 798, FC): Fee reduces from Rs 248 to Rs 109 per unit — 56% savings.
T-shirt (Rs 299, ES): Fee reduces from Rs 71 to Rs 56 per unit — 21% savings.
13. How does this fee reduction impact Amazon sellers’ growth?
The fee reduction provides sellers with more capital for marketing, inventory expansion, and competitive pricing, helping them scale faster and enter new product categories.
14. Why did Amazon India implement these changes?
Amazon aims to make selling more profitable, encourage more sellers to join the platform, and support small enterprises and entrepreneurs in growing their businesses efficiently.
15. Are the benefits applicable to all types of products?
The zero referral fee specifically applies to products priced under Rs 1,000. Shipping cost reductions may vary depending on product weight and fulfillment method.
16. How can sellers track or calculate their fee savings?
Sellers can estimate savings by comparing current fees with the updated referral and shipping fee structures, or refer to the Amazon.in seller portal for exact calculations.
17. Will these changes affect large sellers or premium products?
The focus of this update is on small-ticket products under Rs 1,000, but benefits may indirectly improve profitability for larger sellers with high volumes of low-cost items.
18. Is this change permanent?
The announcement applies starting March 16, 2026, and while no end date has been specified, Amazon may review policies annually based on market dynamics.
19. How can sellers start benefiting from these updates?
Ensure products fall under the eligible categories, utilize Easy Ship or FBA as appropriate, and track fees after March 16 to see cost savings reflected per unit.
20. Where can sellers find more details?
For more information on the updated fees and eligibility, sellers can visit the Amazon.in seller portal or refer to official Amazon Seller Services communications.
