Big Relief for Amazon Sellers as Zero Referral Fees Cover 12.5 Crore Products
Seller Central update brings major cost relief across 1,800 plus categories, aims to boost seller margins and competitive pricing
By ChannelMAX Staff Writer
Mar-2026#03
Amazon India has announced a significant revision in its marketplace fee structure, offering wider zero referral fees and multiple cost reductions for sellers. The update, titled “Amazon.in fee updates, effective March 16, 2026”, was published on Seller Central and will automatically apply to seller accounts from March 16.
The move is expected to directly benefit lakhs of sellers, especially small and medium businesses operating in price-sensitive categories. With referral fees reduced or removed across a large product base, sellers may gain more flexibility in pricing, promotions and advertising.
Zero referral fees expanded up to ₹1,000
In one of the biggest changes, Amazon has expanded zero referral fees from products priced under ₹300 to products priced up to ₹1,000. The benefit will apply across more than 1,800 categories. These include apparel, shoes, fashion jewellery, grocery, home décor and furnishings, beauty, toys, kitchen products, automotive and pet products.
With this expansion, over 12.5 crore products on Amazon.in will now attract zero referral fees. This means sellers will no longer pay a percentage-based commission to Amazon for eligible products within this price band. For sellers in high-volume categories such as fashion and grocery, this change could significantly improve margins and allow more competitive pricing strategies.
Also Read: Amazon rolls out AI-powered listing enhancement tool for sellers
Easy Ship fee reduced for products under ₹300
Sellers using Easy Ship for products priced below ₹300 will benefit from a total fee reduction of ₹15 per unit. This includes a ₹10 reduction in weight handling fees across all weight slabs and a ₹5 reduction in closing fees.
For sellers dealing in low-ticket items, especially in Tier 2 and Tier 3 markets, the reduction can improve profitability at scale. Lower fulfilment costs may also help sellers run aggressive discount campaigns during peak sale events.
Referral fee cuts for products above ₹1,000
Amazon has also reduced referral fees by 4 percent to 9.5 percent in select high-demand categories for products priced above ₹1,000. These categories include apparel, healthcare, home improvement, home appliances, personal care, grocery, pet care, footwear and automotive.
For sellers operating in premium or mid-range segments, this move may create room to invest more in Sponsored Ads, brand building, or faster fulfilment options.
Closing fee reductions for self-shipped orders continue
Amazon confirmed that the reduced closing fees introduced in 2025 for self-shipped orders will continue in 2026. For products priced under ₹300, the closing fee has been reduced from ₹45 to ₹20. For products priced between ₹300 and ₹500, the closing fee has dropped from ₹35 to ₹26.
The updated closing fee rate card applies across all channels and price bands. Sellers who manage their own logistics may see improved cost efficiency and better control over profit margins.
New fee categories introduced
To improve classification accuracy, Amazon is adding new fee categories. These include breast pumps, diaper bags, gym weights, large furniture, netting cover, shelves including cabinets and racks, and health and household regulated healthcare products such as menstrual cups, contact lenses, diagnostic kits and pain relief items.
Amazon clarified that fee categories may differ from the product category in which an ASIN appears on the marketplace. Sellers are advised to review their catalogues to ensure that products are aligned with the most appropriate fee category.
What sellers should do now
No manual action is required, as the changes will be automatically implemented from March 16.
However, sellers are strongly encouraged to:
i) Review their product pricing strategy in light of zero referral fees.
ii) Recalculate margins for products under ₹1,000.
iii) Consider expanding catalogue in eligible categories.
iv) Use the updated fee structure to plan promotions during upcoming sale events.
v) Check fee previews in Seller Central to understand revised per-unit economics.
This update reflects Amazon India’s continued focus on reducing seller costs and driving marketplace growth. By expanding zero referral fees and cutting fulfilment-related charges, the company is offering sellers greater flexibility to scale, compete and improve profitability in 2026. For sellers willing to recalibrate pricing and marketing strategies, the revised fee structure could open new growth opportunities across both mass and premium segments.
Also Read: Amazon UK Opens Applications for €23,000 Sustainability Accelerator Grants
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#03
Amazon India has announced a significant revision in its marketplace fee structure, offering wider zero referral fees and multiple cost reductions for sellers. The update, titled “Amazon.in fee updates, effective March 16, 2026”, was published on Seller Central and will automatically apply to seller accounts from March 16.
The move is expected to directly benefit lakhs of sellers, especially small and medium businesses operating in price-sensitive categories. With referral fees reduced or removed across a large product base, sellers may gain more flexibility in pricing, promotions and advertising.
Zero referral fees expanded up to ₹1,000
In one of the biggest changes, Amazon has expanded zero referral fees from products priced under ₹300 to products priced up to ₹1,000. The benefit will apply across more than 1,800 categories. These include apparel, shoes, fashion jewellery, grocery, home décor and furnishings, beauty, toys, kitchen products, automotive and pet products.
With this expansion, over 12.5 crore products on Amazon.in will now attract zero referral fees. This means sellers will no longer pay a percentage-based commission to Amazon for eligible products within this price band. For sellers in high-volume categories such as fashion and grocery, this change could significantly improve margins and allow more competitive pricing strategies.
Also Read: Amazon rolls out AI-powered listing enhancement tool for sellers
Easy Ship fee reduced for products under ₹300
Sellers using Easy Ship for products priced below ₹300 will benefit from a total fee reduction of ₹15 per unit. This includes a ₹10 reduction in weight handling fees across all weight slabs and a ₹5 reduction in closing fees.
For sellers dealing in low-ticket items, especially in Tier 2 and Tier 3 markets, the reduction can improve profitability at scale. Lower fulfilment costs may also help sellers run aggressive discount campaigns during peak sale events.
Referral fee cuts for products above ₹1,000
Amazon has also reduced referral fees by 4 percent to 9.5 percent in select high-demand categories for products priced above ₹1,000. These categories include apparel, healthcare, home improvement, home appliances, personal care, grocery, pet care, footwear and automotive.
For sellers operating in premium or mid-range segments, this move may create room to invest more in Sponsored Ads, brand building, or faster fulfilment options.
Closing fee reductions for self-shipped orders continue
Amazon confirmed that the reduced closing fees introduced in 2025 for self-shipped orders will continue in 2026. For products priced under ₹300, the closing fee has been reduced from ₹45 to ₹20. For products priced between ₹300 and ₹500, the closing fee has dropped from ₹35 to ₹26.
The updated closing fee rate card applies across all channels and price bands. Sellers who manage their own logistics may see improved cost efficiency and better control over profit margins.
New fee categories introduced
To improve classification accuracy, Amazon is adding new fee categories. These include breast pumps, diaper bags, gym weights, large furniture, netting cover, shelves including cabinets and racks, and health and household regulated healthcare products such as menstrual cups, contact lenses, diagnostic kits and pain relief items.
Amazon clarified that fee categories may differ from the product category in which an ASIN appears on the marketplace. Sellers are advised to review their catalogues to ensure that products are aligned with the most appropriate fee category.
What sellers should do now
No manual action is required, as the changes will be automatically implemented from March 16.
However, sellers are strongly encouraged to:
i) Review their product pricing strategy in light of zero referral fees.
ii) Recalculate margins for products under ₹1,000.
iii) Consider expanding catalogue in eligible categories.
iv) Use the updated fee structure to plan promotions during upcoming sale events.
v) Check fee previews in Seller Central to understand revised per-unit economics.
This update reflects Amazon India’s continued focus on reducing seller costs and driving marketplace growth. By expanding zero referral fees and cutting fulfilment-related charges, the company is offering sellers greater flexibility to scale, compete and improve profitability in 2026. For sellers willing to recalibrate pricing and marketing strategies, the revised fee structure could open new growth opportunities across both mass and premium segments.
Also Read: Amazon UK Opens Applications for €23,000 Sustainability Accelerator Grants
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.