Amazon India rolls out major fee cuts to help sellers lower costs and price products competitively
Seller Central update introduces zero referral fees up to ₹1,000, Easy Ship reductions, and lower closing fees for self-shipped orders
By ChannelMAX Staff Writer
Mar-2026#16
Amazon has introduced a significant revision to its seller fee structure in India, with the changes coming into effect from March 16, 2026. The update, announced on Seller Central under the title “Amazon.in fee updates are now effective”, aims to reduce selling costs and help merchants offer more competitive prices to customers.
The new fee structure includes expanded zero referral fees, lower Easy Ship costs, reduced referral fees for higher-priced products, and continued reductions in closing fees for self-shipped orders. These changes are designed to encourage growth for sellers across multiple categories and improve margins for both small and large businesses operating on the Amazon marketplace.
Also Read: Top 2026 marketing trends Amazon sellers must watch to grow their business
Zero referral fees expanded to products priced up to ₹1,000
One of the biggest highlights of the update is the expansion of zero referral fees. Previously, this benefit applied only to products priced below ₹300. With the new update, Amazon has extended the zero referral fee policy to products priced up to ₹1,000 across more than 1,800 product categories.
These categories include apparel, footwear, fashion jewellery, grocery, home décor, furnishings, beauty products, toys, kitchen products, automotive items, and pet supplies.
According to Amazon, the change will impact over 12.5 crore core products listed on the platform. Sellers offering products in the ₹300 to ₹1,000 price range can now save significantly on referral fees, which are typically charged as a percentage of the product price. For many small and medium sellers, this move can directly improve profit margins and allow them to offer lower prices to attract more customers.
Easy Ship fee reductions for products under ₹300
Amazon has also reduced Easy Ship costs for sellers shipping low-priced products. If a seller uses Easy Ship for items priced below ₹300, they will now receive a total fee reduction of ₹15. This reduction includes a ₹10 cut in weight handling fees across all weight slabs and an additional ₹5 reduction in closing fees.
Easy Ship is a logistics program where sellers store inventory at their own location while Amazon handles pickup, delivery, and customer service. Lower shipping costs for low-value products can help sellers in categories such as accessories, household items, and small electronics maintain profitability.
Referral fee reductions for products priced above ₹1,000
The updated fee structure also provides relief to sellers offering higher-value products. Amazon has reduced referral fees by 4 percent to 9.5 percent for several high-demand categories where product prices exceed ₹1,000. These categories include apparel, healthcare products, home improvement items, home appliances, personal care products, grocery items, pet care products, footwear, and automotive accessories.
The reduction aims to support sellers in growing categories and encourage more listings in segments where customer demand continues to rise.
Closing fee reductions continue for self-shipped orders
Amazon has confirmed that the reduced closing fees introduced in 2025 for self-shipped orders will remain in effect for 2026.
For products priced below ₹300, the closing fee has been reduced from ₹45 to ₹20. For items priced between ₹300 and ₹500, the closing fee has dropped from ₹35 to ₹26.
Self-ship, also known as merchant fulfilled shipping, allows sellers to pack and deliver orders themselves or through third-party logistics providers. Lower closing fees can help sellers operating their own logistics networks reduce operational costs.
New fee categories introduced
Amazon has also introduced several new fee categories to improve product classification and ensure sellers are charged the correct fee structure. The newly added fee categories include breast pumps, diaper bags, gym weights, large furniture, netting covers, shelves including cabinets and racks, and a new segment called health and household regulated healthcare. This regulated category includes products such as menstrual cups, contact lenses, diagnostic kits, and pain relief items.
Amazon clarified that fee categories determine the type of product an ASIN represents and may differ from the category in which the product appears on the marketplace.
What sellers should do now
Amazon has stated that no manual action is required from sellers. The revised fees are automatically applied to seller accounts starting March 16. However, sellers are encouraged to review the updated fee card and ensure their products are categorized correctly. Accurate product classification helps avoid incorrect fee charges and ensures sellers benefit fully from the revised structure.
Sellers may also want to reassess their pricing strategies. Lower fees in many categories could allow sellers to reduce product prices, improve competitiveness, or increase profit margins.
The latest Amazon.in fee update marks one of the most seller-friendly pricing adjustments introduced by the marketplace in recent years. By expanding zero referral fees, lowering logistics charges, and continuing reduced closing fees, Amazon aims to support seller growth and encourage competitive pricing.
For sellers, the update provides an opportunity to optimize product pricing, improve profitability, and expand product offerings across multiple categories. By understanding the new fee structure and adjusting their strategies accordingly, sellers can take full advantage of the cost savings introduced through the Seller Central update.
Also Read: Amazon pitches Vine as spring sales booster for seasonal shopping rush
Disclaimer:
Amazon is the registered trademark of the e-commerce brand.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.
By ChannelMAX Staff Writer
Mar-2026#16
Amazon has introduced a significant revision to its seller fee structure in India, with the changes coming into effect from March 16, 2026. The update, announced on Seller Central under the title “Amazon.in fee updates are now effective”, aims to reduce selling costs and help merchants offer more competitive prices to customers.
The new fee structure includes expanded zero referral fees, lower Easy Ship costs, reduced referral fees for higher-priced products, and continued reductions in closing fees for self-shipped orders. These changes are designed to encourage growth for sellers across multiple categories and improve margins for both small and large businesses operating on the Amazon marketplace.
Also Read: Top 2026 marketing trends Amazon sellers must watch to grow their business
Zero referral fees expanded to products priced up to ₹1,000
One of the biggest highlights of the update is the expansion of zero referral fees. Previously, this benefit applied only to products priced below ₹300. With the new update, Amazon has extended the zero referral fee policy to products priced up to ₹1,000 across more than 1,800 product categories.
These categories include apparel, footwear, fashion jewellery, grocery, home décor, furnishings, beauty products, toys, kitchen products, automotive items, and pet supplies.
According to Amazon, the change will impact over 12.5 crore core products listed on the platform. Sellers offering products in the ₹300 to ₹1,000 price range can now save significantly on referral fees, which are typically charged as a percentage of the product price. For many small and medium sellers, this move can directly improve profit margins and allow them to offer lower prices to attract more customers.
Easy Ship fee reductions for products under ₹300
Amazon has also reduced Easy Ship costs for sellers shipping low-priced products. If a seller uses Easy Ship for items priced below ₹300, they will now receive a total fee reduction of ₹15. This reduction includes a ₹10 cut in weight handling fees across all weight slabs and an additional ₹5 reduction in closing fees.
Easy Ship is a logistics program where sellers store inventory at their own location while Amazon handles pickup, delivery, and customer service. Lower shipping costs for low-value products can help sellers in categories such as accessories, household items, and small electronics maintain profitability.
Referral fee reductions for products priced above ₹1,000
The updated fee structure also provides relief to sellers offering higher-value products. Amazon has reduced referral fees by 4 percent to 9.5 percent for several high-demand categories where product prices exceed ₹1,000. These categories include apparel, healthcare products, home improvement items, home appliances, personal care products, grocery items, pet care products, footwear, and automotive accessories.
The reduction aims to support sellers in growing categories and encourage more listings in segments where customer demand continues to rise.
Closing fee reductions continue for self-shipped orders
Amazon has confirmed that the reduced closing fees introduced in 2025 for self-shipped orders will remain in effect for 2026.
For products priced below ₹300, the closing fee has been reduced from ₹45 to ₹20. For items priced between ₹300 and ₹500, the closing fee has dropped from ₹35 to ₹26.
Self-ship, also known as merchant fulfilled shipping, allows sellers to pack and deliver orders themselves or through third-party logistics providers. Lower closing fees can help sellers operating their own logistics networks reduce operational costs.
New fee categories introduced
Amazon has also introduced several new fee categories to improve product classification and ensure sellers are charged the correct fee structure. The newly added fee categories include breast pumps, diaper bags, gym weights, large furniture, netting covers, shelves including cabinets and racks, and a new segment called health and household regulated healthcare. This regulated category includes products such as menstrual cups, contact lenses, diagnostic kits, and pain relief items.
Amazon clarified that fee categories determine the type of product an ASIN represents and may differ from the category in which the product appears on the marketplace.
What sellers should do now
Amazon has stated that no manual action is required from sellers. The revised fees are automatically applied to seller accounts starting March 16. However, sellers are encouraged to review the updated fee card and ensure their products are categorized correctly. Accurate product classification helps avoid incorrect fee charges and ensures sellers benefit fully from the revised structure.
Sellers may also want to reassess their pricing strategies. Lower fees in many categories could allow sellers to reduce product prices, improve competitiveness, or increase profit margins.
The latest Amazon.in fee update marks one of the most seller-friendly pricing adjustments introduced by the marketplace in recent years. By expanding zero referral fees, lowering logistics charges, and continuing reduced closing fees, Amazon aims to support seller growth and encourage competitive pricing.
For sellers, the update provides an opportunity to optimize product pricing, improve profitability, and expand product offerings across multiple categories. By understanding the new fee structure and adjusting their strategies accordingly, sellers can take full advantage of the cost savings introduced through the Seller Central update.
Also Read: Amazon pitches Vine as spring sales booster for seasonal shopping rush
Disclaimer:
Amazon is the registered trademark of the e-commerce brand.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.