Amazon’s Zero Referral Fees Hit Amongst Sellers In Telangana

Starting April 7, 2025, the company has introduced zero referral fees on over 1.2 crore products that are priced below Rs.300. For each product sold, a referral fee is applicable which varies by product category and is calculated as a percentage of the total selling price of the product. 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 Rs.65, down from Rs.77.

Additionally, the company has reduced the weight handling fees for lightweight items under 1 kg by up to Rs.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 per cent savings in selling fees on the second unit. These changes will enable sellers to offer a wider selection, more competitive prices and grow their business.

From the overall, 50,000 sellers from Telangana selling on A.in, thousands of sellers in Hyderabad and neighboring cities selling home and kitchen, BISS, furniture, sports, home improvement amongst other products below Rs.300 are already seeing benefits

Gaurav Bhatnagar, Director Sales, Amazon India said, “We're delighted by the tremendous response to our fee reduction initiative from sellers across Telangana. By eliminating referral fees on crores of products and reducing weight handling fee, we're making it more lucrative for sellers to grow on Amazon.in. This vibrant region contributes significantly to our network of 16 lakh plus sellers across India and we remain committed to enabling small businesses from tier 2, 3, and 4 towns to thrive in the digital economy, as their success drives our success. This initiative allows sellers to offer wider selection and more competitive prices, particularly on everyday low-value items."

Shaik Azeem, Owner of Selloria, said, "At Selloria, we have been selling on Amazon for five years, offering unisex cotton caps in various colors and styles, marketed as versatile accessories suitable for sports and casual wear. The recent zero referral fees on products for products priced below Rs.300 has been a game-changer for us. By encouraging more strategic bundling and optimized selection, we have seen an increase in basket size and better visibility on the marketplace. It has helped us refine our catalog, focus on high-velocity SKUs and unlock better margins through combos. The shift has ultimately aligned well with our pricing strategy and will help drive sustainable growth at scale."

Amazon’s investments in infrastructure enable a fast and reliable delivery experience for customers. Over the years, Amazon has invested in creating a robust fulfilment and delivery infrastructure across India and in Telangana. Today it has half a dozen large fulfilment centers and one sortation centre with over 1.75lakh sq. ft of processing area in the state. Additionally, it has close to 70 Amazon-owned and Partner Delivery Stations and close to 1800 'I Have Space' stores.

Furthermore, over the last few years, Amazon has been leveraging Generative AI and machine learning to help sellers with better listing and customer engagement on its marketplace. Its ML tools detect and correct catalogue defects, and recommend deals and promotions to help sellers increase sales. They have also introduced the Gen AI powered Listing Experience, enabling sellers to create high-quality product listings by simply providing a product image, description or Brand website URL.