The Amazon India seller fee hike is now in effect following the end of the festive sales season.
- Warehouse storage charges increased from ₹45 to ₹50 per cubic foot per month.
- Refunds of the “closing fee” on returned orders will no longer be given to sellers. The closing fee ranges from ₹6-21 depending on category.
These changes apply across sellers using Amazon India’s marketplace services.
Why the Amazon India Seller Fee Hike Matters
Impact on sellers’ profitability
With storage charges rising and refunds on closing fees removed, sellers—especially those with high return rates or heavy inventory—will see margin pressure.
Potential consumer price implications
Sellers facing higher costs may pass on some of the burden to end-customers via slightly higher prices or reduced offers. One industry source noted:
“Whatever is the change in commission, it is done more to change the behaviour of the seller… the prices also go up by 2%.”
Strategic shift by Amazon India
The fee hike follows a period when Amazon India had reduced many seller fees for low-value items. For instance, earlier in 2025 Amazon cut referral fees for products under ₹300. This new move suggests Amazon is balancing the ecosystem—reducing fees in some segments, raising others in response to cost pressures or business strategy.
Which Categories & Fees Are Affected?
- Storage fee: increased to ₹50/ft³/month from ₹45.
- Closing fee on returns: no longer refunded—so if a seller pays a closing fee for a sale and that order is returned, they won’t get the closing fee back.
- Other fee heads may also be subject to changes (though the public disclosure focused on these two).
The broader past revisions (though not all part of this hike) include changes to referral fees across multiple categories. Business Today
What Sellers Should Do
- Review inventory levels: With higher storage cost, optimize stock to reduce heavy warehousing.
- Track returns & closing-fee exposure: Since closing-fee refunds are removed, returns now have additional cost burden.
- Adjust pricing strategy: Consider absorbing some cost, or communicating value rather than just price to maintain margins.
- Assess product mix: If you sell categories heavily impacted by storage or high returns, consider scaling down or shifting to categories with lower cost burden.
- Monitor Amazon policy updates: Amazon may further revise rate-cards; stay updated via Seller Central and official announcements.
Background Context: Marketplace Fee Dynamics
While this is a fee hike, the overall fee-landscape in India has seen swings. Earlier in April 2025, Amazon India introduced a large fee reduction for low-value items (products under ₹300 across 135+ categories) — zero referral fees, reduced weight handling fees, etc. This shows Amazon is segmenting seller fee strategy: reducing burden in one segment, increasing elsewhere.
How This Compares to Past Changes
- Unlike the recent Amazon India seller fee hike, many past changes were fee reductions (for growth stimulus) especially for low-ticket items.
- This hike is more targeted (storage + returns) rather than across-the-board referral fee increases.
- It signals a shift from purely growth-centric incentives to cost-management mode — for both Amazon and sellers.
What This Means for the Indian E-commerce Sector
- Smaller sellers may feel pressure more, as they often have tighter margins and less bargaining power.
- Marketplace competition: Other platforms may respond with competitive fee structures to attract sellers.
- Sustainability of models: Fee hikes reflect the high cost of logistics, warehousing and returns in India. Platforms may need to balance growth with profitability.
The “Amazon India seller fee hike” is a significant move in the India e-commerce marketplace. Sellers should evaluate cost structures and adapt accordingly to maintain profitability.
