Amazon India has extended its referral fee waiver for items priced below ₹1,000 until 31 December, as reported by a common news source. The referral fee is a commission that Amazon usually charges sellers for every transaction. It ranges from 2 per cent to 16.5 per cent depending on the product category.
The waiver was earlier available only until 30 November. Not all product categories are covered under the extension. The move mirrors a similar step taken by Walmart backed Flipkart.
Flipkart strengthens its zero commission strategy
Two weeks ago, Flipkart rolled out a zero commission policy for all products under ₹1,000. Its hypervalue platform Shopsy now allows sellers to list items without paying any commission, regardless of price. This strategy aims to counter competition from value focused platforms such as Meesho. Meesho earns mainly from advertisements and logistics mark ups rather than seller commissions.
Flipkart has also reduced return fees for sellers by ₹35. The company believes this can lower business costs by up to 30 per cent.
Possible impact on sellers and consumers
If sellers choose to pass on the savings, product prices could fall and boost online demand during the winter sales period. Flipkart expects the new policies to draw more sellers from smaller towns and semi urban manufacturing hubs such as Shantipur, Morbi and Khurja.
Amazon India had earlier reduced referral fees for items priced below ₹300 in April 2025 to support small businesses. Flipkart’s zero commission push and its added cost reductions are aimed at drawing more middle class shoppers and increasing the variety of products on its platform.
A recent note from BofA Securities states that Meesho mostly serves mass market users, Amazon caters to premium customers and Flipkart focuses on urban consumers and those in tier 1 and tier 2 cities.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
