Amazon Surprises Customers with New Additional Fee on Orders Placed Through Its Platform

E-commerce leader Amazon India has announced a significant policy update that introduces a marketplace fee of ₹5 on each order placed through its platform. This change, effective immediately, will apply to all standard and Prime members, signaling a shift in Amazon's pricing structure.

Why the New ₹5 Marketplace Fee?

According to a report by Source, the newly introduced charge is aimed at supporting the operational infrastructure of Amazon’s vast e-commerce network in India. Amazon says the fee will help in managing platform maintenance and delivery logistics.

Customers will now see this ₹5 fee listed separately on their purchase invoices — a strategy similar to that adopted by other delivery platforms like Swiggy, Zomato, and Blinkit, which already include convenience charges in their orders.

Who Will Be Affected?

The new marketplace charge will impact:

• All Amazon customers, including Prime subscribers

• Every order, regardless of the total amount

The ₹5 fee will be non-refundable for cancelled or returned orders after shipping, but will be refunded if the cancellation is made before shipment. This means shoppers will need to be mindful of order cancellations, ensuring they act before shipping to avoid being charged.

What Orders Are Exempt?

Amazon has clarified that several types of transactions are exempt from the new marketplace fee. These include:

• Digital transactions like bill payments, mobile and DTH recharges through Amazon Pay

• Gift card purchases

• Orders with existing processing or exchange fees

• Cash-on-delivery (COD) orders

This provides some relief to users who primarily use Amazon for digital payments or who prefer to pay cash upon delivery. For savvy shoppers, opting for cash on delivery can be a way to bypass this new charge entirely.

Impact on Frequent Shoppers

While ₹5 may appear minimal, frequent shoppers could see this fee accumulate quickly, especially during festive seasons or sale events. For example, placing 10 orders a month would result in an additional ₹50 in fees — something that budget-conscious consumers may factor into their shopping decisions.

The non-refund policy for returns (post-shipping) could also discourage impulse purchases and make users think twice before placing orders they may later cancel or return.

How Amazon Compares with Other Platforms

Amazon’s move mirrors what other instant delivery and online food ordering platforms like Blinkit, Zepto, and Swiggy Instamart already do — apply small convenience fees per transaction. However, unlike food delivery, Amazon previously maintained a no-extra-fee model (apart from delivery charges for non-Prime users), which contributed to its strong value proposition.

This change signifies a growing trend among e-commerce companies to monetize operational overheads more transparently, especially in a high-competition, low-margin environment.

Tips to Avoid the Fee

Here’s how users can try to avoid or minimize the ₹5 charge:

1. Opt for cash on delivery – exempt from the fee.

2. Cancel orders before shipping – the fee will be refunded.

3. Group purchases together – reduce the number of orders to save on multiple fees.

4. Use Amazon Pay for digital transactions – exempted from the charge.

Final Thoughts

Amazon’s decision to add a ₹5 marketplace fee is a small but strategic move to improve its operational cost recovery in India. While the amount is minor, it does affect customer perception — especially for Prime members who already pay for additional benefits.

As competition intensifies in the e-commerce space, such fees may become more common, encouraging shoppers to be more strategic with their purchasing behavior.