Dear seller,
We would like to express our gratitude and appreciation for your continued engagement as a seller on Amazon.in. It is your ongoing support and commitment that has helped Amazon become one of India's most popular marketplaces. We want to build on this as you embark on the journey of potentially expanding your business by selling to clients throughout India. During this cycle, we will make a number of modifications to our price structure that we think will continue to give you excellent value while also allowing you to offer fantastic products and services to your clients.
Following these modifications, sellers should notice an average decrease of INR 1.5 in costs per item sold. Many sellers will witness a significant fall in the average fees paid to Amazon.in in major categories such as Home, Home Improvement, Kitchen, and Apparel. Please note that these changes go into effect on September 9, 2024, and reflect our commitment to making Amazon.in one of India's most popular marketplaces for sellers.
What Are Referral Fees?
It is the cost charged to sellers in exchange for access to the Amazon.in ecosystem's perks. It applies to each item sold and is expressed as a percentage of the total selling price. The percentage varies by product type. Some charge categories now have a changed referral fee.
What Are Weight Handling Fees?
If you select Fulfilment by Amazon (FBA) or Easy Ship (ES) as your delivery method, Amazon.in will transport your products to customers and charge a fee known as weight handling cost. In addition, if you participate in the Seller Flex programme, this cost will apply.
What This Means for Sellers
- Lower per-item fees on average, freeing margin for promotions and customer experience improvements.
- Bigger reductions in high-volume categories (Home, Home Improvement, Kitchen, and Apparel) which often have thin margins.
- A clear signal that Amazon is rebalancing its fee structure to keep small and mid-size sellers competitive on the platform.
How to Prepare
- Recalculate your unit economics with the new referral and weight handling fees before September 9, 2024.
- Identify SKUs that move from unprofitable to profitable under the new structure and prioritise those for inventory and ad spend.
- Update your pricing rules in Seller Central so you don't leave margin on the table.
- Review your fulfilment choice (FBA vs Easy Ship vs Seller Flex). the right mix may shift under the new fees.
Final Thoughts
The revised Amazon referral fee structure is broadly positive for sellers, particularly in everyday categories where margin pressure has been highest. Use the next few weeks to model the impact on your catalogue and adjust your pricing, advertising, and fulfilment strategy accordingly. If you need help running the numbers or restructuring your listings, the Dcrayon e-commerce team can support you.
