Amazon Referral Fee 2026: Complete Guide for Sellers in India
Table of Contents
- Introduction
- What is Referral Fees in Amazon?
- Amazon Referral Fee 2026 Update (March 16, 2026)
- Categories Covered Under the New Fee Structure
- Before vs After: Category-wise Fee Comparison Table
- Who Benefits Most from this Update
- Impact on Amazon Sellers in India
- Actionable Tips for Sellers to Adapt
- How to Get Ready for the Update Without Manual Work
- Conclusion
- Get Your Questions Answered (FAQ)
TL;DR
Amazon India has updated its referral fee structure effective from March 16, 2026. Zero referral fees now apply to products under ₹1,000 across 1,800+ categories. Fees for high-demand categories above ₹1,000 have also been reduced. Sellers can save up to 70% in total selling fees.
Reference link: https://www.aboutamazon.in/news/small-business/amazon-seller-fee-reduction-zero-referral-march-2026
Introduction
Amazon India has introduced the Amazon referral fee 2026 update, effective from March 16, 2026.
Products priced under ₹1,000 now have zero referral fees across 1,800+ categories, allowing sellers to retain more profit on every order. For products above ₹1,000, referral fees have also been reduced across several key categories.
In this blog, we break down what has changed, who benefits the most, and how this update impacts Amazon sellers.
What is Referral Fees in Amazon?
An Amazon referral fee is the commission Amazon charges on every product you sell on its marketplace and it plays a major role in your overall selling costs.
The referral fee is calculated as a percentage of the total selling price and varies depending on the product category. Generally, this has ranged between 2% and 16.5% across different categories.
For example, if you sell a product for ₹500 and the referral fee for that category is 10%, Amazon deducts ₹50 as the referral fee from your payout.
Amazon Referral Fee 2026 Update (March 16, 2026)
1. Zero Referral Fees Expanded to Products Under ₹1,000
Previously, zero referral fees only applied to products priced under ₹300, Amazon introduced in March 2026 With the new update, Amazon has expanded this to all products priced under ₹1,000.
- Zero referral fee now applies to 12.5 crore+ products
- Covers 1,800+ categories on Amazon.in
2. Reduced Referral Fees for Products Above ₹1,000
For products priced above ₹1,000, Amazon has reduced referral fees across several high-demand categories with fee reductions ranging from 4% to 9.5% depending on the category. Categories include Apparel, Healthcare, Home Improvement, Home Appliances, Personal Care, Grocery, Pet Care, Footwear, and Automotive.
Categories Covered Under the New Fee Structure
The March 16, 2026 update covers a wide range of product categories. Here is a breakdown of what is included:
Zero Referral Fee Categories (Products Under ₹1,000)
The Zero-referral fee benefit applies across 1,800+ categories. Some of the most popular ones include:
- Apparel & Fashion
- Footwear
- Electronics
- Home & Kitchen
- Toys & Games
- Pet Accessories
- Fashion Jewellery
- Beauty & Personal Care
- Grocery & Gourmet Foods
- Sports & Fitness
- Automotive Accessories
- Books & Music
- Office & Industrial Supplies
Reduced Referral Fee Categories (Products Above ₹1,000)
- Apparel & Fashion
- Healthcare & Medical Supplies
- Home & Kitchen
- Beauty & Personal Care
- Grocery & Gourmet Foods
- Pet Accessories
- Footwear
- Automotive Accessories
Before vs After: Category-wise Fee Comparison Table
Amazon Referral Fee Update – Products Under ₹1,000 (Zero Referral Fee)
| Category | Price Range | Earlier Fee | Updated Fee |
|---|---|---|---|
| Apparel & Fashion | Up to ₹1,000 | 8% – 24% | 0% |
| Footwear | Up to ₹1,000 | 8% – 16% | 0% |
| Electronics | Up to ₹1,000 | 5% – 15% | 0% |
| Home & Kitchen | Up to ₹1,000 | 6% – 15% | 0% |
| Toys & Games | Up to ₹1,000 | 9% – 12.5% | 0% |
| Pet Accessories | Up to ₹1,000 | 9.5% – 14% | 0% |
| Fashion Jewellery | Up to ₹1,000 | 17.5% – 22.5% | 0% |
| Beauty & Personal Care | Up to ₹1,000 | 6.5% – 14% | 0% |
| Grocery & Gourmet Foods | Up to ₹1,000 | 5% – 11.5% | 0% |
| Sports & Fitness | Up to ₹1,000 | 6% – 12% | 0% |
| Automotive Accessories | Up to ₹1,000 | 8.5% – 16% | 0% |
| Books & Music | Up to ₹1,000 | 3% – 13.5% | 0% |
| Office & Industrial Supplies | Up to ₹1,000 | 5% – 13% | 0% |
Note:
Earlier fees varied by sub-category. The 0% updated fee applies to all products priced up to ₹1,000 effective March 16, 2026. Verify current rates on your product on the Amazon Seller Fees & Pricing page.
Amazon Referral Fee Update – Products Above ₹1,000 (Reduced Referral Fee)
| Category | Price Range | Updated Fee |
|---|---|---|
| Apparel & Fashion | Above ₹1,000 | 7% – 24% |
| Healthcare & Medical Supplies | Above ₹1,000 | 5% – 12% |
| Home & Kitchen | Above ₹1,000 | 6% – 12% |
| Beauty & Personal Care | Above ₹1,000 | 7% – 10% |
| Grocery & Gourmet Foods | Above ₹1,000 | 5% – 11.5% |
| Pet Accessories | Above ₹1,000 | 9.5% – 14% |
| Footwear | Above ₹1,000 | 8% – 16% |
| Automotive Accessories | Above ₹1,000 | 3% – 16% |
Note:
Updated fees vary by sub-category for products priced above ₹1,000. Verify current rates for your product on the Amazon Seller Fees & Pricing page.
Who Benefits Most from this Update
The sellers who benefit the most from this update are:
- Sellers who sell products below ₹1,000, who now pay 0% referral fees
- Sellers who sell a large number of products daily, since small savings on each order add up to big savings overall
- Sellers in categories where referral fees have been reduced for products above ₹1,000
- Businesses that want to reduce costs and keep more profit from each sale
Impact on Amazon Sellers in India
Improved Profit Margins
With amazon referral fees significantly reduced or eliminated for a large portion of products, sellers can retain more profit per sale without changing their pricing strategy.
Competitive Pricing Power
Lower fees mean you can price your products without sacrificing margins. This is especially powerful in high-competition categories like fashion and electronics.
Accelerated New Seller Growth
With lower entry costs, more sellers can now start and scale their business on Amazon India, making it easier for new sellers to enter the marketplace confidently.
Encouragement for Category Expansion
Many sellers were hesitant to enter new categories due to high referral fees. With the revised amazon referral fee by category India, exploring new categories is now much more financially feasible.
Actionable Tips for Sellers to Adapt
- Recalculate Your Profit Margins: Check how much profit you are making on each product with the new fee structure. Some products may now be more profitable than before.
- Reprice Your Products: Decide whether to reduce your price to attract more buyers or keep the same price and earn more profit per order.
- Review Your Product Categories: This is a good time to explore categories where fees are now lower or zero. Expanding has become much more affordable.
- Update Your Cost Sheet: Update your referral fee numbers in your cost calculations so your profit figures stay accurate.
- Relook at Your Ad Spend: Lower fees mean more profit per order—use that extra margin to invest more in ads and scale faster.
- Keep an Eye on Competitor Pricing: Watch how competitors adjust their prices over the next few weeks and price smartly to stay competitive.
How to Get Ready for the Update Without Manual Work
Tracking fee changes manually across your entire product catalogue can be time-consuming and lead to mistakes especially when Amazon updates its structure without any notice.
If you want to track your true profitability as an Amazon seller, platforms like KwickMetrics with 15+ native tools, gives you a clear view of your margins, fees, ads, and overall business performance all in one unified dashboard.
Instead of juggling spreadsheets and manually checking Seller Central for every change, KwickMetrics helps you focus on selling, not spreadsheets.
Important Note: Region-Specific Update
This fee update is specific to Amazon India (Amazon.in) only. It does not apply to Amazon marketplaces in the US, UK, UAE, or any other country.
If you sell on multiple Amazon marketplaces, check the respective Seller Central portals for fee updates specific to each region
Conclusion
The Amazon Referral fees 2026 India update helps sellers reduce costs and improve profitability. By knowing the fees for different product categories and updating your pricing accordingly, you can benefit from lower costs and higher profits, Sellers who adapt early can gain better margins, improve pricing, and grow more efficiently.
Get Your Questions Answered (FAQ)
Amazon referral fee is the percentage commission Amazon charges sellers on each sale, and it varies depending on the product category and price range.
After the March 16, 2026 update, Amazon charges 0% referral fees on many products priced under ₹1,000 across categories such as apparel, footwear, home & kitchen, beauty, toys, pet supplies, and automotive, helping sellers improve margins.
The Amazon referral fee update 2026 reduces selling costs by removing referral fees on eligible low-priced products and lowering fees in select categories, helping sellers improve profitability.
In India, Amazon deducts the referral fee from each sale. The rate varies by category and price range, so sellers should check category-specific fees before listing.
refer to the official fee schedule: https://sell.amazon.in/fees-and-pricing/fee-schedule
No, zero referral fees apply to many categories, but not all products. Sellers should check category-specific eligibility before listing.
refer to the official fee schedule: https://sell.amazon.in/fees-and-pricing/fee-schedule
Amazon referral fees are calculated as a percentage of the product’s selling price, and the percentage varies depending on the category and price range.
For products above ₹1,000, Amazon continues to charge referral fees, but in select categories, these fees have been reduced depending on the price band.
Sellers can reduce referral fee impact by pricing products under ₹1,000 where possible, choosing the right categories, and optimizing pricing strategies to improve margins.
Pricing should always match the perceived value of your listing.
Sellers can use tools to monitor referral fees, track margins, and analyze performance. Platforms like KwickMetrics bring all this data into a unified dashboard, helping sellers avoid manual calculations and make better pricing decisions.
