When do Amazon India's zero referral fees take effect?

The zero referral fee policy takes effect on March 16, 2026, covering products priced under Rs 1,000 (approximately $11 USD) across more than 1,800 product categories.

How many products are affected by Amazon India's fee waiver?

Over 125 million products are now eligible for zero referral fees, a tenfold increase from the previous waiver which covered only 12 million products in 135 categories.

Why is Amazon India reducing fees?

Amazon is investing to grow its India marketplace against competitors Flipkart (Walmart-owned) and Meesho. India's e-commerce market is projected to reach $200 billion by 2028, making it a critical growth market.

Should US sellers consider expanding to Amazon India?

The fee reduction lowers the barrier to entry for international sellers. Products under $11 with strong demand in India's growing middle class could now be profitable. However, sellers should evaluate logistics, regulatory requirements, and competitive dynamics before committing.

Fees & Costs

Amazon India Slashes Referral Fees to Zero on 125M+ Products

Amazon India eliminates referral fees on products priced under Rs 1,000 across 1,800+ categories starting March 16. A tenfold expansion from the prior waiver, saving sellers up to 70% on fees.

MatthieuCTO at Nova Analytics

Mar 3, 2026 · 5 min read · 900 words

Updated March 3, 2026

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What's Happening

Amazon India is eliminating referral fees on over 125 million products priced under Rs 1,000 (approximately $11 USD). The waiver kicks in on March 16, 2026, and covers more than 1,800 product categories. This is a tenfold expansion from Amazon's previous fee waiver, which only applied to 12 million products across 135 categories. Comparable platform shifts have shown up in our weekly cohort reviews within the first refresh cycle.

For sellers operating in India, this translates to savings of up to 70% on total Amazon fees for qualifying products. Referral fees have traditionally ranged from 5% to 17% depending on the category. Removing them entirely on sub-Rs 1,000 items makes it significantly cheaper to sell lower-priced goods on Amazon.in.

The move is strategic. Amazon is investing heavily to grow its India marketplace against Flipkart (owned by Walmart) and Meesho, both of which have been gaining ground in India's fast-growing e-commerce sector. India's e-commerce market is projected to reach $200 billion by 2028, and Amazon clearly doesn't intend to cede that ground.

Products Covered

125M+

Up from 12M in previous waiver

Fee Savings

Up to 70%

On total Amazon fees for qualifying products

Key Dates & Deadlines

Mar 3, 2026

Announcement Date

Amazon India officially announces zero referral fees on products priced under Rs 1,000

Mar 16, 2026

Fee Waiver Goes Live

Zero referral fees take effect across 1,800+ product categories

Ongoing

Competitive Response Expected

Flipkart and Meesho likely to counter with their own fee reductions

Who This Affects

India-Based Sellers

If you're already selling on Amazon.in, this is a direct margin boost. Products under Rs 1,000 represent the bulk of India's e-commerce transactions. The fee elimination makes it viable to sell lower-priced items that previously had razor-thin or negative margins after referral fees.

Global Brands Considering India Expansion

For US, EU, and UK sellers evaluating international expansion, this fee reduction lowers the barrier to entry for Amazon India. The platform already has 1.2 million active sellers and over 300 million registered customers. With fee pressure reduced on lower-priced products, testing the Indian market becomes less risky.

Competitive Implications

This move will likely trigger a response from Flipkart and Meesho. Both platforms have been aggressively courting sellers with low-fee and zero-commission models. Expect a fee war in Indian e-commerce through 2026. For sellers, this is good news in the short term but could lead to unpredictable fee structures as platforms compete.

Aspect	Previous Policy	New Policy (Mar 16)
Products Covered	12 million	125+ million
Categories	135	1,800+
Price Threshold	Varied by category	Under Rs 1,000 (~$11)
Referral Fee	5-17% depending on category	0% on qualifying items

What You Should Do Now

1.
Evaluate the India Market Opportunity
If you've been on the fence about selling on Amazon India, this fee reduction changes the math. Run a product-market fit analysis for your catalog. Products under $11 with strong demand in India's growing middle class could now be profitable where they weren't before.
2.
Recalculate Margins on Existing India Listings
If you're already on Amazon.in, review your sub-Rs 1,000 product lineup. Items that were borderline unprofitable may now clear your margin threshold. Update your pricing strategy to reflect the new fee structure before March 16.
3.
Watch for Competitive Responses
Flipkart and Meesho will almost certainly respond. Before committing significant inventory to Amazon India, monitor how the competitive landscape shifts over the next 60 days. A fee war could create short-term opportunities but also uncertainty in platform economics.

How Nova Helps

Multi-Marketplace Visibility

Nova's Profit and Loss Analytics work across all Amazon marketplaces, including India. Track your true margins per product across regions so you can evaluate whether the India fee reduction actually translates to profitable growth.

Use Custom Analytics to build dashboards comparing performance across marketplaces. See how your India catalog stacks up against US, EU, and UK in terms of margins, velocity, and advertising efficiency.

Products Feed gives you a unified view of your entire catalog across marketplaces. Quickly identify which products qualify for the India fee waiver and model the margin impact before committing inventory.

Sources

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Frequently Asked Questions

Common questions about this topic

The zero referral fee policy takes effect on March 16, 2026, covering products priced under Rs 1,000 (approximately $11 USD) across more than 1,800 product categories.
Over 125 million products are now eligible for zero referral fees, a tenfold increase from the previous waiver which covered only 12 million products in 135 categories.
Amazon is investing to grow its India marketplace against competitors Flipkart (Walmart-owned) and Meesho. India's e-commerce market is projected to reach $200 billion by 2028, making it a critical growth market.
The fee reduction lowers the barrier to entry for international sellers. Products under $11 with strong demand in India's growing middle class could now be profitable. However, sellers should evaluate logistics, regulatory requirements, and competitive dynamics before committing.

Verified Sources

Reuters: Amazon India Fee Reduction

All information verified from official Amazon sources and trusted industry analysts as of publication date.

About the Author

Matthieu

CTO at Nova Analytics

Matthieu oversees product development at Nova Analytics, creating innovative tools that help Amazon sellers make smarter, data-driven decisions to grow their business.

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What's Happening

Products Covered

Categories

Fee Savings

Key Dates & Deadlines

Who This Affects

India-Based Sellers

Global Brands Considering India Expansion

Competitive Implications

What You Should Do Now

How Nova Helps

Multi-Marketplace Visibility

Sources

Frequently Asked Questions

When do Amazon India's zero referral fees take effect?

How many products are affected by Amazon India's fee waiver?

Why is Amazon India reducing fees?

Should US sellers consider expanding to Amazon India?

Verified Sources

Matthieu

Related guides

See your Amazon business clearly.

What's Happening

Products Covered

Categories

Fee Savings

Key Dates & Deadlines

Who This Affects

India-Based Sellers

Global Brands Considering India Expansion

Competitive Implications

What You Should Do Now

How Nova Helps

Multi-Marketplace Visibility

Sources