Amazon India: Zero Referral Fees on 12.5 Crore Products

Amazon Announces Zero Referral Fees On Over 12.5 Crore Products

So Amazon India has just dropped a massive “gift” for its 1.7 million sellers. Starting March 16, 2026, the giant will expand its zero referral fee rule to over 12.5 crore products. The goal? To help small businesses scale up by cutting the cost of selling online. In fact, this move covers almost every daily item priced under ₹1,000. Plus, sellers can now save up to 70% in total fees compared to last year.

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The Move from ₹300 to ₹1,000

But here is the main reason for this change. Last year, Amazon removed fees for items under ₹300, which helped Tier 2 and Tier 3 sellers grow fast. Is the new plan even bigger? Yes. Consequently, the zero-fee bracket now jumps from 1.2 crore products to a huge 12.5 crore items. Moreover, this includes things like T-shirts, shoes, and earphones that millions of Indians buy every day. Previously, high commissions made it hard for small shops to offer low prices. So, this structural shift changes the math for every local entrepreneur. Therefore, selling on Amazon is now much more profitable.

How Much Will Sellers Really Save?

Still, many people want to see the actual numbers. The plan? To slash the “Easy Ship” fees by over 20% for cheap items too. And, if you ship more than one unit in a single box, you can save up to 90% on fees for the second item. Accordingly, here is how the savings look for common goods:

Lowering Barriers for New Sellers

But what if you are just starting out? Amazon has also cut the entry costs for first-time sellers. Why? Because “Easy Ship” lets you work from your own home while Amazon handles the delivery. Essentially, this low-cost model helps small brands test new products without a big risk. Indeed, this growth in confidence will likely bring even more selection and better value for customers across India.

Simplified Selling with AI

Then there is the matter of tech. Along with lower costs, Amazon has launched new AI tools to help with listings and stock. The reason? To make selling as simple as possible so you can focus on your brand. Worth noting: These changes are “structural,” meaning they are here to stay rather than being a short promo. Ultimately, when Indian sellers succeed, the whole e-commerce market wins.

Frequently Asked Questions (FAQs)

When do the new Amazon seller fees start? So, the changes take effect on March 16, 2026. Because of this, you should plan your inventory and pricing strategy now to take full advantage of the savings.

Does zero referral fee mean zero total fees? In fact, no. While the referral fee (commission) is zero, you still pay for “Easy Ship” or “FBA” delivery services. Additionally, the delivery fees for cheap items have also dropped by 20%.

Which categories get the zero referral fee? But almost all 1,800+ categories are included if the item is under ₹1,000. Consequently, this includes fashion, electronics, toys, and home essentials.

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