The India SME Forum has welcomed recent seller fee revisions announced by Amazon, saying the changes could ease cost pressures and improve the viability of online selling for micro, small and medium enterprises (MSMEs).

Fee cut seen as boost for small sellers

The industry body described the move as a “timely intervention”, noting that Amazon has expanded its zero referral fee policy to cover products priced under ₹1,000, up from ₹300 earlier. This expansion now spans over 12.5 crore products across more than 1,800 categories.

Wider coverage for MSME products

According to the revised structure, the zero referral fee benefit has grown significantly from around 1.2 crore products to 12.5 crore, aiming to support sellers operating on thin margins. The company also said the changes could improve pricing flexibility and competitiveness for small businesses.

Additional cost reductions

Amazon has also reduced Easy Ship fees by over 20% for lower-priced products under ₹300. Combined, these changes may lead to overall savings of up to 70% for sellers, depending on their business model and usage of promotional tools.

Industry reaction

Speaking on the development, India SME Forum President Vinod Kumar said lower fees could improve seller sustainability, particularly in price-sensitive categories where margins are tight.

An Amazon representative said the revisions were aimed at supporting seller growth and addressing cost pressures in India’s digital commerce ecosystem.

Compliance challenges remain

While welcoming the fee cuts, the India SME Forum also highlighted ongoing challenges faced by small businesses, particularly in areas such as GST compliance, invoicing requirements, and evolving marketplace regulations. It said simplifying compliance would be key to enabling long-term growth for MSMEs in the e-commerce sector.