Reducing fees helps sellers reach deeper into Tier 3, 4 cities: Amit Nanda

Nanda said this is Amazon India's highest-ever reduction in seller fees to support lakhs of small businesses across the country selling on its platform

For Amit Nanda, Director of Selling Partner Services at Amazon India, the most rewarding moments come from hearing seller success stories. He recalls an elderly woman who launched her business on Amazon at the age of 80, selling homemade pickles with the support of her family. Amazon helped her expand beyond her local market, transforming her life. In a move aimed at further boosting growth of sellers on Amazon.in, Nanda said the company has introduced zero referral fees on over 12 million products that are priced below Rs 300. In an interview with Peerzada Abrar, Nanda said this is Amazon India’s highest-ever reduction in seller fees to support millions of small businesses across the country selling on its platform. Edited excerpts:

 

How has Amazon India’s Selling Partner Services developed over time?

 

We have grown to a marketplace of over 1.6 million sellers, many of whom are MSMEs and SMEs, forming the backbone of the Indian economy. Today, we are making a significant announcement — one of the largest reductions in seller fees in Amazon India’s history. This is a major step in our continued effort to lower the cost of doing business for our sellers. For 12 million products across 135 categories — spanning home, kitchen, fashion, apparel, beauty, toys, and more — we are reducing the referral fee for products priced below Rs 300 to zero, effective from April. 

Additionally, we are reducing national shipping fees for sellers using our Easy Ship and Seller Flex services from Rs 77 to Rs 65. These reductions will significantly lower the cost of doing business for our sellers, making it easier for them to scale their operations and invest back into their businesses. 

For instance, if a seller was previously paying Rs 130 in fees on a Rs 299 product, their new fee will be just Rs 70 — allowing them to earn Rs 60 more per sale.  

Another significant change we have made is based on seller feedback. Many sellers have expressed their desire to sell more and asked if they could earn more when selling additional units. In response, we have introduced a new pricing structure. For example, take the socks category. Previously, if a seller priced a pair of socks at Rs 299, he would pay around Rs 130 in fees. Now, with the new structure, the fee for the first unit will be Rs 70. However, if the seller sells two units, the fee for the second unit will be only Rs 5, bringing the total fee to Rs 75 for two units. 

 

What impact do you expect on new sellers joining the platform or a boost in sales?

 

With 12 million products across 135 categories benefiting from this reduction, we expect this to provide a significant boost to existing sellers while also attracting new entrepreneurs to our marketplace. Since these reductions apply to everyday essential products, including apparel, beauty, home furnishings, and more, we expect sellers to reinvest these savings into expanding their offerings and reaching new customers. 

I would not limit this to just specific product types because this is a broad, inclusive change. When you talk about product types, it usually refers to a small, restricted category. However, in this case, the impact is much larger. The shipping fee reduction applies to all sellers, and the referral fee reduction spans across 135 product categories. So, it is the biggest change since we have been running Amazon in India on seller fees. 

 

Did the increasing competitive landscape influence Amazon's decision to lower seller fees?

 

This decision is part of our long-term commitment to reducing the cost of doing business for our selling partners. Over the years, we have implemented various measures to lower these costs through technology and operational efficiencies. However, this is our largest and most comprehensive fee reduction to date. 

 Our approach is based on a flywheel effect: when we lower the cost of doing business for sellers, it leads to greater selection and variety for customers. More selection attracts more customers, which in turn increases sales volume, driving efficiencies that allow us to pass on further savings to sellers. This is a strategic, long-term investment in our sellers’ growth.

 

How does Amazon perceive competition from platforms like Meesho, which operates on a zero-commission model?

 

Our focus remains on enabling seller success through a comprehensive suite of services and technologies. Meesho operates differently. It is closer to Amazon Bazaar on Amazon.in. But we offer multiple models catering to a wide range of sellers. Our fee reduction is aimed at making Amazon more attractive and cost-effective for businesses of all sizes.

 

What impact do you expect the fee reduction to have on  major sales events like the Great Indian Festival?

 

This initiative is designed for everyday benefit, not just for one particular event. Sellers will see cost savings daily, allowing them to reinvest in pricing strategies, inventory, and business expansion. Naturally, the impact will also be felt during major sales events, where lower fees could enable more aggressive pricing and better deals for customers.

 

How will this initiative help Amazon meet the growing demand from tier III and tier IV cities?

 

By reducing fees, we are enabling sellers to invest and reach deeper into these markets. Lower costs can help sellers optimise delivery speeds, reduce prices, and expand their presence in smaller cities. This move empowers sellers to decide where and how they want to reinvest their savings, whether in logistics, promotions, or expanding product lines. Our goal is to enable the sellers who have this option of investing in various options that they believe will work best for their own businesses. We don’t want to control what the seller wants to do. We want to enable them to make their choice.

 

What is your view on the rise of quick commerce in India, and how does it affect Amazon’s strategy?

 

Quick commerce is an evolving segment, catering to customers seeking instant delivery. At Amazon, we focus on three core pillars: vast selection, fast delivery, and competitive pricing. At Amazon, we continue to enhance our speed while maintaining our broad selection and strong value proposition. Our approach ensures that customers get the right balance of speed, variety, and affordability.

 

When we look at the seller fee change, we believe it will have a broad impact across multiple areas. Sellers can reinvest these savings in various ways — whether by expanding their product offerings, setting more competitive prices, or improving delivery speeds for customers. Ultimately, any initiative that reduces the cost of doing business empowers sellers to make strategic decisions about where to allocate their savings. This flexibility allows them to optimise their operations in a way that best supports their growth and enhances the overall shopping experience for customers.

 

How do you see artificial intelligence (AI) playing a role in Amazon's use of technology to support sellers?

 

AI is now embedded in every aspect of our operations. From automated catalog creation to inventory management and pricing recommendations, AI-powered tools help sellers optimise their listings, forecast demand, and improve efficiency. For example, our AI-driven inventory tools provide sellers with insights on optimal stock levels, reducing working capital burdens. AI also enhances our automated customer support and fraud detection mechanisms, ensuring a seamless experience for both sellers and buyers.

 

What trends do you see shaping India's e-commerce landscape in the coming years?

 

India has been a hub of innovation in commerce, and while we have already seen significant advancements in technology, the e-commerce sector is still in its early stages. If we compare conventional trade, which has existed for centuries, to the timeline of e-commerce, we are likely in just the first minute of a 24-hour day. 

Predicting where the industry will be in three to five years is challenging because of the rapid pace of technological change. Instead of making precise predictions, I believe the best way to look at it is through the lens of acceleration—innovation in this space is only going to compound and grow exponentially.

 

Given the entrepreneurial energy and enthusiasm in India, I expect the country to not only be at the forefront of these innovations but also to export some of them globally. Many times, India has led the way in pioneering solutions that later gained traction worldwide. I believe e-commerce will follow a similar trajectory, evolving into something very different and far more advanced than what we see today.