Amazon India Extends Zero Referral Fee for Products Under ₹1,000 Until December 31

Amazon India has extended its zero referral fee policy for products priced under ₹1,000 until December 31, 2025. The move aims to support small sellers, reduce costs on low-priced items, and boost online sales ahead of the holiday season, while keeping pace with Flipkart’s zero-commission strategy.

Amazon India Extends Zero Referral Fee for Items Under ₹1,000; Boost to Sellers Ahead of Winter Sales

What Has Changed: Fee Waiver Extension

In a development aimed at supporting small sellers, Amazon India has extended its zero‑referral‑fee policy for items priced below ₹1,000 until December 31, 2025.

Referral fees — the commission that Amazon typically charges sellers on each sale — normally range between 2% and 16.5%, depending on the product category. 

Previously, the waiver was valid only until November 30, but now the company has announced an extension. 

It’s worth noting that the waiver does not cover all products — only selected items priced under ₹1,000 are eligible for this fee relaxation. 

Why Amazon Made This Move

Support for Small Sellers & Low‑Ticket Items

The waiver targets sellers offering low-cost items — often those run by small or micro enterprises — and aims to ease the burden of high referral commissions. This helps in making the platform more seller-friendly and could encourage more sellers to list budget‑priced products.

Competing with Rivals in the Budget Segment

The move comes shortly after Flipkart introduced a zero‑commission model for products under ₹1,000.
Flipkart’s zero‑commission policy even extends to its hyper‑value marketplace Shopsy, where sellers pay no commission regardless of the product price. 
By mirroring this strategy, Amazon India may be trying to retain its competitive edge in the budget-ecommerce segment.

Potential Impact on Sellers and Consumers

Sellers — Lower Costs, More Listings

With no referral fee for eligible items, sellers — especially those dealing in lower-priced goods — stand to save significantly on transaction costs. This could incentivize more sellers to join or expand their presence on Amazon India, especially in Tier-2 or Tier-3 cities.

Consumers — Chances of Lower Prices, Better Deals

If sellers pass on these savings to customers, end‑product prices could drop. Given that this fee waiver coincides with the holiday and winter sales season, shoppers might see better deals, especially on low-cost essentials and small-ticket items.

Market Dynamics — A Boost for Mass‑Market E‑commerce

This move strengthens Amazon’s and Flipkart’s ability to compete with value‑commerce platforms like Meesho, which already work largely on zero-commission or minimal‑commission models and derive revenue from advertisements and logistics mark‑ups instead of traditional seller commissions. 

Background: Earlier Fee Cuts by Amazon

This is not the first time Amazon India has reduced seller fees. In April 2025, the company had scrapped referral fees for over 1.2 crore low‑priced products priced below ₹300, spanning more than 135 categories such as apparel, home décor, beauty, toys, grocery, and more. 

At that time, Amazon also lowered its shipping and handling fees for certain small products — an initiative clearly aimed at supporting small businesses and encouraging sales of low-cost items. 

What’s Next: Extension or Further Moves?

According to sources aware of the matter, the waiver could be extended beyond December 31 depending on response from sellers and customers. 

If market conditions remain favorable, and with the festive season still ongoing, Amazon might continue to use such incentives to retain seller loyalty and keep competition alive in the budget segment.