Amazon scraps referral fee for sellers on products below ₹300

• Referral fee removal: Amazon has eliminated its referral fee (2-4%) for sellers on products priced below ₹300.
• Affected products: Over 1.5 crore goods across 135 categories will benefit from this change.

Reduced shipping charges and handling fees

• Shipping cost reduction: Amazon slashed national shipping charges by nearly 16%.
• Fulfillment channels: Fees for sellers using external fulfillment services like Easy Ship and Seller Flex reduced from ₹77 to ₹65 per order.
• Handling fees: Weight handling fees for lightweight items under 1kg decreased by up to ₹17.

Impact on seller fees

• Fee reduction example: A product worth ₹299 previously incurred ₹130 in fees, now reduced to ₹70.
• Volume discounts: Sellers selling multiple units can save over 90% on fees for the second unit.

Future plans and strategy

• Long-term focus: Amazon aims for long-term growth by passing benefits to sellers, despite uncertainties about short-term revenue impact.
• Efficiency gains: The company claims operational efficiency improvements have enabled these fee reductions.

Financial performance

• Revenue growth: Amazon Seller Services reported a 14% rise in operating revenue to ₹25,406 crore in FY24.
• Net loss reduction: Net loss decreased by 29% to ₹3,470 crore during the same period.