Amazon India slashes seller referral fees in retail growth push

Core Insights - Amazon India is eliminating referral fees for products priced under 1,000 rupees ($10.98) to attract more sellers and strengthen its position in the competitive e-commerce market [1] - This initiative builds on a previous "zero-referral fee" policy that covered around 12 million products priced below 300 rupees, resulting in a 50% increase in new sellers [1] - The new fee structure, effective March 16, will encompass over 125 million products and includes reductions in some shipping charges [1] Company Strategy - The move aims to make selling on Amazon more appealing and straightforward, particularly for small businesses and entrepreneurs in tier-2 and tier-3 cities [1] - Amazon has identified India as a critical market due to its rapidly growing internet user base, which is driving e-commerce growth [1] - The company plans to invest over $35 billion in India by 2030, focusing on expanding AI infrastructure, retail logistics, and supporting small business growth [1] Competitive Landscape - Amazon faces significant competition from Walmart-backed Flipkart and Reliance Industries' retail arm, as well as quick-commerce players like Blinkit and Swiggy's Instamart, which are rapidly gaining market share [1]