If you’ve been hesitant to start selling online due to high commissions and delivery costs, Amazon’s new policy change is designed specifically for you. Amazon has expanded its "Zero Referral Fee" policy to cover over 12.5 crore products.

In simple terms: For many items, Amazon will no longer take a percentage of your sale.

Step 1: Understand the "Zero Referral Fee" Expansion

Typically, every time you sell an item, Amazon charges a "Referral Fee" (a commission).

• The Change: Starting March 16, 2026, if your product is priced under ₹1,000, the referral fee is now ₹0 across more than 1,800 categories.

• What it covers: This includes high-demand daily items like T-shirts, earphones, sarees, bedsheets, toys, and small home appliances.

• The Impact: Previously, this was only for items under ₹300. By raising the limit to ₹1,000, Amazon is allowing sellers to keep a much larger portion of their revenue on mid-range products.

Step 2: Calculate Your Savings (Real-World Examples)

To see how much more profit stays in your pocket, look at these three common scenarios:

Step 3: Benefit from Reduced "Easy Ship" Fees

For new sellers, Easy Ship is the most popular way to start. You store the products at your home or shop, and Amazon handles the pickup and delivery.

• The Update: For all products priced under ₹300, Amazon has slashed Easy Ship fees by more than 20%.

• Why this matters: This makes it much cheaper to sell "low-ticket" items (like snacks, stationery, or small accessories) where profit margins are usually very tight.

Step 4: Maximize Profits with "Multi-Unit" Shipping

Amazon is now rewarding sellers who encourage customers to buy more than one item at a time.

• The "Second Unit" Rule: If a customer buys two or more units and you ship them in a single box, you can save up to 90% on selling fees from the second unit onwards.

• Seller Tip: You can set up "Buy 2, Get 10% Off" promotions to encourage this behavior. Not only do you sell more volume, but your cost per unit drops significantly because of these shipping fee discounts.

Step 5: Leverage AI Tools for Success

Lowering fees is only half the battle. To help new sellers manage this increased volume, Amazon has introduced AI-powered tools that you should use from day one:

• Auto-Listing: Use AI to create high-quality product descriptions and titles instantly.

• Inventory Management: AI insights tell you when to restock so you never run out of your best-selling items.

• Pricing Insights: Data-driven suggestions help you price your items competitively while maintaining your new, higher profit margins.

Summary Checklist for New Sellers:

1. Check your Category: Ensure your products fall within the 1,800+ categories eligible for zero referral fees.

2. Optimize Pricing: If your product is currently priced at ₹1,050, consider if dropping it to ₹999 actually nets you more profit due to the ₹0 referral fee.

3. Prepare for March 16: These changes go live mid-March. Ensure your inventory is ready and your listings are optimized.

4. Think in Bundles: Design your offerings to encourage customers to buy multiple units in one order to unlock that 90% fee saving on additional units.

The Bottom Line: This is a structural shift aimed at making India's digital economy more accessible. By removing the commission on products under ₹1,000, Amazon is essentially becoming a logistics and discovery partner rather than a commission-taker for the majority of small-scale Indian retail.