Amazon India slashes seller referral fees
Change
Amazon India stopped charging sellers referral fees for products priced below 1,000 rupees, covering more than 125 million listings and effective March 16, and also reduced certain shipping charges.
Why it matters
Competing marketplaces face increased pressure to offer similar incentives or risk losing merchants in India's low-price segment. Small-ticket sellers will likely reorient sourcing, pricing and inventory priorities toward high-volume SKUs and expansion into tier-2 and tier-3 cities.
Implications
- • Small and medium online sellers in India must revise pricing and margin models for SKUs under 1,000 rupees to reflect the waived referral fee.
- • Flipkart and Reliance Industries' retail arm must assess whether to introduce comparable fee waivers or other incentives to retain and attract low-price merchants.
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