Key Facts:Â
Amazon is an American multinational technology company engaged in e-commerce and online advertising.Â
The company was founded in 1994 by Jeff Bezos in Bellevue in Washington.Â
Prime Highlights:Â
Amazon India waives referral fees on over 1.2 crore products priced below Rs 300 to support small businesses.Â
The fee waiver applies to 135 product categories, including apparel, grocery, beauty, home décor, and more.Â
Key Background:Â
In a significant move to empower small businesses, Amazon India has announced the waiver of referral fees on over 1.2 crore products priced below Rs 300. This initiative, aimed at supporting emerging sellers and micro-entrepreneurs, is designed to make online selling more affordable and accessible for a broader range of sellers across the country.Â
Referral fees, which are commissions Amazon charges on each product sold through its platform, have been a concern for sellers of low-margin items. By eliminating these fees on products across 135 categories—including apparel, footwear, groceries, beauty, and home décor—Amazon seeks to ease financial burdens and incentivize sellers to offer more competitive pricing, particularly for everyday low-value products.Â
Amit Nanda, Director of Selling Partner Services at Amazon India, emphasized that this move will help sellers expand their offerings while ensuring more competitive pricing. “By eliminating referral fees and reducing shipping costs, we are making selling on Amazon more lucrative,” said Nanda. Additionally, Amazon has introduced a new flat rate for sellers using external fulfillment services, such as Easy Ship and Seller Flex, with national shipping rates starting at Rs 65—down from Rs 77. This flat-rate model aims to simplify shipping costs for sellers regardless of the package size or distance.Â
Furthermore, Amazon has reduced handling fees for lightweight items under 1 kg by up to Rs 17, and sellers shipping multiple products will benefit from significant savings. These changes, effective from April 7, 2025, are expected to provide small sellers with the opportunity to expand their businesses and offer a wider range of products to customers. This strategic move aligns with Amazon’s ongoing efforts to enhance the growth prospects of small businesses in India.Â