NEW DELHI, April 07, 2026 —Industry body India SME Forum (ISF) welcomed Amazon India’s recent seller fee revisions, terming the move a “timely intervention” to improve the economics of online selling for micro, small and medium enterprises (MSMEs).
India SME Forum (ISF) recently invited Amazon India’s Director of Sales, Gaurav Bhatnagar, to address its members to explain the rationale behind Amazon’s seller fee revision and its benefits for online selling MSMEs. The expanded zero referral fee policy—now covering products priced under ₹1,000 (up from ₹300) has increased coverage more than tenfold, from approximately 1.2 crore to over 12.5 crore products across 1,800-plus categories. This strategic move directly addresses a long-standing industry concern around thin margins and cost pressures faced by small sellers in digital commerce.
“The economics of selling online have been a key consideration for MSMEs. Expanding zero referral fees to a much larger product base is a meaningful step that can directly improve seller viability, particularly in price-sensitive categories,”Vinod Kumar, President India SME Forum said.
The e-commerce platform has also reduced Easy Ship fees by over 20 per cent for products priced under ₹300. Taken together, the changes could result in savings of up to 70 per cent for sellers, with higher efficiencies possible through promotional constructs such as basket-based offers, the company said.
“At Amazon, we believe when sellers succeed, we succeed. This seller fee revision gives our partners greater pricing flexibility and sustainable growth opportunities, directly addressing cost pressures faced by MSMEs in India’s digital commerce ecosystem,” said Bhatnagar.
ISF noted that the development comes at a time when India’s e-commerce growth is increasingly being driven by sellers from Tier-2 and Tier-3 cities, where cost predictability and margins play a critical role in scaling businesses.
“As more MSMEs adopt digital channels, the focus is shifting from onboarding to ensuring sustainable growth. Predictable and affordable cost structures will be critical in enabling this transition,” Kumar added.
ISF, however, pointed out that while fee reductions are a positive step, regulatory compliance continues to remain a burden for small sellers – from GST filings and invoicing requirements to evolving marketplace regulations and state-level compliances. Simplifying and streamlining compliance frameworks will be critical to enabling small businesses to scale efficiently in India’s digital commerce ecosystem.
