If you’re a small business owner selling on Amazon India or thinking about becoming one, you should know about some good news.
Starting April 7, Amazon is rolling out a significant update to its seller fees, which is clearly aimed at making life easier (and more profitable) for small and independent sellers.
These changes might not sound flashy at first glance, but they could seriously impact your bottom line.
No More Referral Fees on Products Below ₹300
Amazon is removing referral fees on over 12 million products priced under ₹300. That’s across 135+ categories, from groceries and kitchen tools to jewelry, shoes, beauty, and even toys.
If you’ve been selling low-cost items, you already know the struggle. You price an item at ₹299, and Amazon takes a chunk off the top, sometimes up to 15% before you see a rupee.
With those referral fees gone, you finally get to keep more of your earnings. This is a huge deal for small shops and side hustlers who depend on volume sales of affordable items.
It also means you might now be able to price your items more competitively or offer discounts without taking a hit. That’s a win not just for sellers but for buyers as well.
Shipping Just Got a Little Lighter on the Wallet
Amazon is also reducing national shipping charges for sellers who use its Easy Ship or Seller Flex services. What used to cost ₹77 will now cost ₹65. A ₹12 drop might not seem like much, but over time and hundreds of orders, it really adds up.
If you’ve hesitated to ship nationwide because of the high costs, this might be your sign to expand.
This change is especially helpful for sellers in smaller towns or rural areas, where shipping has often been too expensive to make sense. It’s also good news for customers in those regions with limited options.
Weight Handling Fees Also Going Down
Another seller pain point that Amazon is addressing: is weight handling fees. If your product weighs under 1 kilogram, you’ll now pay up to ₹17 less per item.
Lightweight doesn’t always mean low cost when it comes to shipping, so this minor update can help sellers move items like skincare, notebooks, accessories, or clothing.
This fee cut could make previously unviable items profitable for some sellers again. If you’ve been looking to test new SKUs or categories, this might be a great time to experiment with light, fast-moving products, which are also now cheaper to ship.
Overall, the seller community seems cautiously optimistic. Many are thrilled about the fee cuts, especially those feeling squeezed by rising fulfillment and platform costs.
But there are a few murmurs of concern too. Some sellers in Amazon’s forums have pointed out that while referral and shipping fees are decreasing, other fees—like closing fees for self-shipped orders—might increase.
It’s not yet clear how big that trade-off will be, so the best advice for now is to pay attention. Read the detailed breakdown when it drops and run the numbers for your shop. You might find that the fee savings outweigh the potential increases especially if most of your catalog is under ₹300.
Amazon Is Playing the Long Game in India
So what’s behind all these changes? In one word: strategy. Amazon knows that India is a booming market for online shopping, and it’s trying to make itself the platform of choice for both sellers and shoppers.
Other platforms—like Flipkart and Meesho—have made serious inroads into the low-cost segment. This update shows Amazon is ready to compete on price, not just logistics.
More importantly, it’s a clear signal that Amazon is paying attention to the realities Indian sellers face.
By lowering the cost of doing business, they’re making it easier for entrepreneurs to succeed—whether you’re a mom running a side hustle from home or a small manufacturer trying to scale up.
If you’re already a seller, this is the time to review your product listings, rethink your pricing, and look for opportunities to expand. And if you’ve been thinking about getting started—this could be the gentle nudge you needed. Lower fees mean lower risk, and that’s always welcome when you’re just starting out.
Also, if you’re a creator or influencer promoting low-cost items through Amazon storefronts or affiliate links—this update is good news for you too. Better pricing and seller margins could translate into better deals and more commissions.
All in all, these changes feel like Amazon is saying: We want to help small sellers thrive. And if you ask us, that’s the kind of shift the e-commerce space really needs right now.
