Amazon Announces Zero Referral Fees on Over 1.2 Crore Products; Move Aimed at Boosting Growth of Lakhs of Sellers Across India

• Zero referral fees on products under ₹300, enabling significant savings on low-price items for sellers.
• Applicable across 135 product categories like apparel, shoes, fashion jewelry, grocery, home décor and furnishings, beauty, toys, kitchen products, automotive, and pet products amongst others.
• Simplified flat shipping rate introduced for sellers using external fulfilment (Easy Ship and Seller Flex): National shipping rates now start at ₹65, down from ₹77.
• Sellers shipping more than one unit at a time stand to see up to 90%+ savings in selling fees on the second unit.

Amazon India today announced its highest-ever reduction in seller fees to support lakhs of small businesses selling on Amazon.in from across the country. In a move aimed at further boosting growth of sellers on Amazon.in, the company has introduced zero referral fees on over 1.2 crore products that are priced below ₹300. Referral fees is a commission that sellers pay to Amazon for each product sold. The zero referral fees apply to more than 135 product categories.

Amazon has also brought in a simplified flat rate for sellers using external fulfilment channels like Easy Ship and Seller Flex, with national shipping rates now starting at ₹65, down from ₹77. While Easy Ship is a fulfilment channel where Amazon collects packages from a sellers’ location and delivers them to customers, as part of Seller Flex, Amazon manages a portion of the sellers’ warehouse as an Amazon fulfilment center.

Additionally, the company has reduced the weight handling fees for lightweight items under 1 kg by up to ₹17, lowering the overall fees that sellers pay to Amazon. Sellers shipping more than one product unit at a time stand to see up to 90%+ savings in selling fees on the second unit. These changes will enable sellers to offer a wider selection, competitive offers and grow their business. The revised fees come into effect from April 7, 2025.

Amit Nanda, Director, Selling Partner Services, Amazon India, said "At Amazon India, we are committed to enabling the growth of all sellers because we strongly believe that our success lies in their success. By eliminating referral fees on crores of products and reducing shipping costs, we're making it more lucrative for sellers to sell on Amazon.in. This initiative supports seller growth on Amazon by enabling them to offer a wider selection and present more competitive offers to customers, particularly on everyday low-value items. As we gain efficiencies in our operations, we ensure those benefits reach our sellers and customers.”

The combined effect of eliminated referral fees and reduced shipping costs translates to substantial savings for sellers.

In 2013, Amazon started its e-commerce business in India with just 100 sellers and a selection comprising mainly books, with deliveries in select cities. Today, Amazon.in has over 1.6 million sellers on its marketplace selling a wide variety of products from smartphones to household items, from stationery to kitchen products and from gardening tools to musical instruments to customers across all serviceable pin-codes in India. The company has been focused on digitizing small businesses to enable the largest selection, using technology to remove inefficiencies and deliver value to customers. This aligns with Amazon's vision of transforming the way India buys and sells. More than 90% of sellers on Amazon.in are small and medium businesses, and over 50% of the seller base is located in tier 2, 3, and 4 cities. This reflects Amazon's commitment to empowering local entrepreneurs and businesses across India, contributing to the growth of India’s digital economy.

Glossary:

• Easy Ship: Amazon collects packages from sellers' locations and delivers them to customers.
• Seller Flex: Amazon manages a portion of the seller's warehouse as an Amazon fulfilment center.
• Selling Fee: A combination of all fee types - referral fees, weight handling fees, closing fees and others.
• Weight Handling Fee: Charges associated with the physical handling and shipping of products based on weight.
• External Fulfilment: External fulfilment channels refer to Easy Ship and Seller Flex fulfilment channels.

Report: 51% of Amazon Sellers Announce Higher 2020 Sales Due to COVID-19

In its annual survey of nearly 5,000 Amazon entrepreneurs, brands, and businesses, Jungle Scout explores the challenges, strategies, and ecommerce investments of Amazon sellers in 2021.

In its annual survey of nearly 5,000 Amazon entrepreneurs, brands, and businesses, Jungle Scout explores the challenges, strategies, and ecommerce investments of Amazon sellers in 2021.

AUSTIN, Texas, Feb. 3, 2021 /PRNewswire/ -- Jungle Scout, the leading all-in-one platform for Amazon sellers, today released the results of its survey of nearly 5,000 entrepreneurs, brands, and businesses on Amazon. The 2021 State of the Amazon Seller Report reveals that more than half of Amazon sellers saw increased sales in 2020 during and because of COVID-19.

Amazon's net sales from third-party sellers grew 57% year-over-year in 2020, heavily contributing to Amazon's $386 billion annual revenue. The report explores these sellers' diverse business strategies, including their challenges, revenue, and ecommerce growth plans for 2021.

Key insights include:

1. COVID-19 contributed to Amazon sellers' revenue in 2020.

• 51% of Amazon sellers say their sales increased during and/or because of the COVID-19 pandemic.
• 44% said their businesses have performed better than expected because of the COVID-19 pandemic.

2. 85% of Amazon sellers are profitable going into 2021.

• 62% said their profits increased during 2020.

3. Ecommerce expansion is top priority for Amazon sellers in 2021.

• 96% plan to expand their Amazon businesses in 2021.
• 39% are considering selling on Walmart.com in 2021, and many are exploring Shopify, Instagram, Target, and other platforms.

4. Sellers continue to invest in Amazon — but they have concerns.

• 66% are concerned about increased competition driving prices down.
• Amazon's ad business is booming, but it's costing sellers; 62% are concerned about increasing ad costs on Amazon.

"The past year has emphasized the staying power of ecommerce, with Amazon continuing to lead the charge. And Amazon's third-party sellers are essential to this success and growth," said Greg Mercer, founder and CEO of Jungle Scout. "As ecommerce becomes a more fundamental part of consumers' lives, it also becomes more competitive for the brands and businesses that leverage its reach."

About the Survey

Between Dec. 1-28, 2020, Jungle Scout surveyed 4,864 Amazon sellers, including prospective and former sellers. Respondents represent 70 countries, 17 Amazon marketplaces, and all relevant Amazon product categories. They are ages 18 to 80+, as well as all genders and levels of education. See full report for more details.

About Jungle Scout

Jungle Scout is the leading all-in-one tool for selling on Amazon. Founded in 2015 as the first Amazon product research tool, Jungle Scout today features a full suite of best-in-class business management solutions and powerful market intelligence resources to help entrepreneurs and brands manage their ecommerce businesses. Jungle Scout is headquartered in Austin, Texas, and supports nine global Amazon marketplaces. Read more at www.junglescout.com.