Amazon India extends zero referral fee for items under ₹1,000 till Dec 31

Amazon India has removed the referral fee for sellers on items priced below ₹1,000 until December 31, according to an Economic Times report. The referral fee, a commission charged by Amazon for each transaction, typically ranges between 2 per cent and 16.5 per cent depending on the product category.

Earlier, the waiver was applicable only until November 30. While not all products are covered under the latest extension, the move is similar to a strategy followed by Walmart-backed Flipkart.

Flipkart leads with zero-commission model

Two weeks ago, Flipkart introduced a zero-commission policy for products under ₹1,000. Additionally, its hypervalue platform, Shopsy, now allows sellers to list products without paying any commission, regardless of price. The initiative is aimed at countering competition from value-commerce platforms such as Meesho, which earns mainly through advertisements and logistics mark-ups rather than seller commissions.

Flipkart has also cut return fees for sellers by ₹35, potentially reducing the cost of doing business by up to 30 per cent.

Impact on sellers and consumers

If sellers pass on the savings to consumers, prices could drop significantly, boosting online demand during the winter sales season. Flipkart expects the move to encourage more sellers from smaller towns and semi-urban manufacturing hubs such as Shantipur, Morbi and Khurja to join the platform.

Amazon India had earlier slashed referral fees for products below ₹300 in April 2025 to support small businesses. Flipkart’s zero-commission policy and further cost cuts aim to attract middle-class shoppers and increase selection on the platform.

According to a recent note by BofA Securities, Meesho largely caters to mass-market users, Amazon serves premium segments and Flipkart focuses on urban and tier-1 and tier-2 city consumers.