Amazon India has announced a waiver on seller referral fees for all items priced below Rs 1,000, effective immediately and lasting until December 31, 2025. This move is designed to encourage more small and medium businesses (SMBs) to join the e-commerce platform and boost sales during the critical end-of-year shopping season.
The referral fee is a commission that Amazon charges sellers for each item sold on its platform. These fees vary depending on the product category and can range from 2% to 16.5% of the order value. By eliminating this fee for lower-priced items, Amazon aims to reduce the initial costs for new sellers, making it easier for them to establish themselves in the competitive e-commerce market.
This initiative is particularly beneficial for sellers who are new to online retail, providing them with a significant incentive to list their products on Amazon.in. The company believes that this support will enable small businesses to grow and thrive in the digital marketplace. Amazon's commitment to digitizing 10 million Indian small businesses by 2025 aligns with this announcement.
The waiver comes at a strategic time, coinciding with the Black Friday sales and the lead-up to the Christmas and New Year shopping period. Amazon is currently offering a wide array of discounted items, focusing on electronics, home appliances, and seasonal products. The company has launched a special sales period spanning from early November to the first week of December, featuring substantial discounts across various product categories, including smartphones and smart-home devices.
This initiative could significantly impact consumer behavior, potentially driving increased sales of lower-priced goods. Sellers may also be encouraged to offer more products within the sub-Rs 1,000 range to take advantage of the fee waiver, ultimately benefiting consumers with a wider selection of affordable options.
While Amazon has not released specific projections, industry analysts anticipate a surge in new seller registrations and increased transaction volumes in the targeted price range. The impact of this waiver on overall revenue and profitability for Amazon India remains to be seen, but the company clearly views this as a strategic investment in long-term growth and market penetration.
