Amazon India Extends Zero Commission on Low-Priced Goods

Amazon India has announced an extension of its zero commission policy for low-priced products, giving sellers additional relief on Amazon India seller fees during the year-end sales period. For items priced below 1,000 rupees, sellers will continue to enjoy a full waiver of referral commissions through December 31, creating more room to compete on price while protecting margins.

Under normal circumstances, referral commissions—known locally as seller commissions—are charged by the marketplace on every order, with rates typically ranging from 2% to 16.5% of the order value depending on the category. By suspending these fees on qualifying low-priced items, Amazon India is sending a clear signal: it intends to stay highly competitive in the value segment and in lower-tier markets.

Response to Flipkart's Zero-Commission Push

The extension comes shortly after Flipkart rolled out its own zero-commission initiative for products priced below 1,000 rupees. According to industry sources, Amazon India initially planned to end its commission waiver on low-priced items on November 30. That timeline has now been pushed to December 31, effectively adding another month of support for sellers.

However, the zero commission policy is not blanket coverage across all categories. The waiver applies only to eligible product types, and category-specific rules still apply. Sources also indicate that if both sellers and consumers provide strong feedback on the program, Amazon India may consider prolonging the policy even after the end of the year.

Escalating Competition in Low-Priced Categories

Two weeks earlier, Flipkart moved aggressively by implementing a zero-commission structure on products under 1,000 rupees and expanding that model to cover all items listed on its budget-focused platform, Shopsy. This has increased pressure across India’s e-commerce landscape, particularly in the low average order value segment where price sensitivity is high.

Amazon, for its part, has already taken bold steps in this direction. In April, the company removed seller commissions on more than 12 million items priced below 300 rupees. At the time, that was regarded as Amazon India’s largest single reduction in seller fees, and it signaled a strategic pivot toward building scale in entry-level price bands.

For Amazon sellers, this wave of zero-commission initiatives means more than just a temporary cut in Amazon India seller fees. It reflects a broader shift in platform strategy: marketplaces are now competing not only on traffic and fulfillment speed, but also on the overall cost structure offered to merchants in key value segments.

Low-Ticket Focus and the Rise of Zero-Commission Models

India's major e-commerce platforms are intensifying their efforts in low-ticket categories while pushing deeper into Tier-2, Tier-3, and smaller cities. Meesho was the first to introduce a full zero-commission model in 2022, opening the door for millions of micro, small, and medium-sized enterprises to enter e-commerce with minimal upfront platform costs.

This approach helped Meesho expand its user base rapidly in non-metro markets, and industry observers note that Meesho’s order growth in these regions has outpaced many competitors. The success of this model has forced other players—including Amazon India and Flipkart—to reassess their product mix, seller ecosystem, and warehousing networks in order to stay relevant in the value segment.

For Amazon sellers, especially those targeting everyday essentials, home goods, and affordable fashion, the growing acceptance of zero-commission models translates into a larger potential customer base and better economics on low-margin items. The challenge now is to balance aggressive pricing with reliable fulfillment and compliance.

Amazon Bazaar: Amazon India's Low-Price Storefront

To better serve non-metro consumers and strengthen its position in the value segment, Amazon India launched Amazon Bazaar in April 2024. This dedicated low-price storefront focuses on products priced under 599 rupees, including home and living items, décor, daily necessities, and fashion categories.

Since its launch, Amazon Bazaar has recorded rapid growth. The number of sellers on the platform has increased sixfold, while the consumer base has grown eightfold. Notably, around 65% to 70% of Amazon Bazaar’s customers come from non-metro locations, underscoring the platform’s role in reaching smaller cities and towns.

Amazon plans to further increase marketing investments to strengthen brand awareness of Amazon Bazaar across India. For sellers, this creates an additional channel to position low-priced products in front of highly price-sensitive shoppers who are still looking for trusted brands and reliable delivery.

Expanding Amazon Bazaar Beyond India

Earlier this month, Amazon extended the Amazon Bazaar concept beyond India by launching a standalone Amazon Bazaar app in 14 new markets across Asia, Africa, and Latin America. This expansion is part of a broader strategy to build a global network of low-price, mobile-first marketplaces focused on budget-conscious consumers.

For cross-border sellers, including those shipping from China into India, this signals a long-term commitment by Amazon to the low-cost, high-volume segment. As Amazon Bazaar and similar offerings grow, sellers who can keep landed costs under control—covering product, logistics, duties, and Amazon India seller fees—will be best positioned to win in this environment.

What This Means for Amazon Sellers

Taken together, the extension of the zero commission policy for goods under 1,000 rupees, the earlier fee waivers on items below 300 rupees, and the rapid rise of Amazon Bazaar point to a clear trend: Amazon India is investing heavily in affordability and reach.

For Amazon sellers, this environment offers several practical advantages:

• More room to compete on price. Temporary reductions in Amazon India seller fees on qualifying low-priced products help offset tight margins, especially in commoditized categories.
• Access to new customer segments. Platforms like Amazon Bazaar are attracting large numbers of buyers from Tier-2 and smaller cities, creating fresh demand for value-oriented SKUs.
• Incentives to optimize low-priced assortments. With a zero commission policy on certain price bands, it becomes more attractive to build bundles, multipacks, and budget SKUs tailored to India’s cost-sensitive consumers.
• At the same time, sellers must manage inventory, logistics, and compliance with equal care. Price alone is not enough—reliable delivery, accurate labeling, and stable stock availability remain critical to capturing and retaining buyers in the Amazon India ecosystem.

Pairing Fee Relief with Reliable Cross-Border Logistics

As Amazon India extends its zero commission policy on low-priced items and scales up Amazon Bazaar, sellers have a unique opportunity to rethink their product strategy, expand into new regions, and reduce overall Amazon India seller fees on select SKUs. Those who can combine competitive pricing with dependable cross-border logistics will be best positioned to turn these platform incentives into long-term growth.

For brands and sellers shipping from China into India, logistics is a key part of that equation. Forest Shipping is an international freight forwarder focused on serving e-commerce and Amazon sellers, providing end-to-end solutions to move your goods from China to Amazon warehouses across India. From consolidating shipments and arranging export customs in China to coordinating import clearance and final delivery to Amazon fulfillment centers, Forest Shipping helps streamline your supply chain so you can focus on pricing, selection, and growth in the Indian market.