Quick answer
From 16 March 2026, Amazon India expanded zero referral fees from products under Rs 300 to products priced up to Rs 1,000 across 1,800+ categories, and cut referral fees on many categories above Rs 1,000. Sellers still pay closing fees, shipping or weight-handling fees and 18% GST on fees, and closing fees rose slightly from 7 September 2026. Zero referral fee helps margins, but it does not mean zero fees.
In this guide
“Zero referral fee” is one of the most talked-about Amazon India changes of 2026. Amazon says over 125 million products now carry zero referral fees, and its seller base crossed 2 million in September 2026. But many sellers misread the change and price products as if Amazon takes nothing. Here is what really changed and how to use it.
What changed in 2026
- 16 March 2026: zero referral fees expanded from products under Rs 300 to products priced up to Rs 1,000, across 1,800+ categories.
- Above Rs 1,000: referral fees were reduced in several high-demand categories, including apparel, healthcare, personal care, grocery, home improvement, appliances, footwear, pet care and automotive.
- Self-ship closing fees were reduced for low-priced products in March.
- 7 September 2026: closing fees increased by Rs 1 for products up to Rs 500 and by Rs 3 above Rs 500.
Referral fee rates still vary by category and price band, so always confirm your exact rate on Amazon’s official fee page or in Seller Central.
What you still pay
| Fee | Still applies? | Notes |
|---|---|---|
| Referral fee | Zero for eligible products up to Rs 1,000 | Category-based above Rs 1,000 |
| Closing fee | Yes | Depends on price band and fulfilment channel |
| Shipping / weight handling | Yes | Depends on weight, size and delivery distance |
| FBA pick & pack and storage | Yes, if you use FBA | Charged per unit and per cubic foot |
| GST on fees | 18% | Claimable as input credit if GST-registered |
| TCS and TDS | 0.5% and 0.1% | Deducted from payouts, claimable |
A simple example
Imagine a Rs 499 product in a zero-referral category, shipped through Easy Ship. The referral fee is Rs 0, but you still pay a closing fee, a weight-handling fee based on its packed weight and distance, and 18% GST on those fees. The only way to know your real payout is to enter your exact fees. Our free marketplace fee and profit calculator shows commission, fees, GST, TCS, TDS, bank settlement and net profit per order.
How to use the change to grow
- Re-check every SKU under Rs 1,000. Your margin may have improved enough to lower prices, fund ads or offer free delivery.
- Create value packs under Rs 1,000. Splitting a large pack into two smaller ones can move both into the zero-referral band.
- Reinvest savings in ads. Extra margin can fund Sponsored Products to build rank.
- Watch competitors. Many sellers will cut prices; compete on value, reviews and listing quality, not only price.
- Review weight and packaging. Lighter, smaller packs lower weight-handling fees.
Need an Amazon margin review? Our Amazon account management team audits pricing, fees, fulfilment and ads SKU by SKU.
Frequently asked questions
Is selling on Amazon India completely free now?
No. Eligible products up to Rs 1,000 have zero referral fee, but closing fees, shipping or weight-handling fees, FBA fees if used, and GST on fees still apply.
How do I check if my product has zero referral fee?
Check your category and price band on Amazon’s official fees and pricing page or in Seller Central’s fee preview for your listing.
Did Amazon increase any fees in 2026?
Yes. From 7 September 2026, closing fees rose by Rs 1 for products up to Rs 500 and by Rs 3 above Rs 500.
Should I lower my prices because of zero referral fee?
Only after calculating your full per-order profit. In many cases it is better to keep price and invest the saving in ads or better packaging.
Our team has 12+ years of hands-on experience growing brands on Amazon, Flipkart, Meesho, Myntra, Nykaa, JioMart and quick-commerce apps like Blinkit, Zepto, Swiggy Instamart and BigBasket. Guides are reviewed and updated as platform policies change.
