Amazon launches marketplace fee, excludes Q-com offering Amazon Now

Ecommerce giant Amazon India has launched a flat marketplace fee of Rs 5 on all orders, following in the footsteps of its domestic peer Flipkart, as platforms look to offset growing costs associated with their operations.

While Amazon previously waived delivery fees for Prime members, the marketplace fee would still be levied on all orders.

Walmart-owned Flipkart had launched a platform fee of Rs 3 in August last year, mirroring quick commerce players. However, it was already present on Flipkart's fashion vertical, Myntra, and quick commerce arm, Flipkart Minutes.

The fee will not be applicable on Amazon Business (its B2B arm), Amazon Bazaar—the hypervalue platform and Amazon Now, its newly launched quick commerce programme.

The fee will also be excluded from digital purchases and payments, as well as gift cards. The marketplace fee would not be charged as a separate cost in orders with other fees like exchange fees, and offer processing fees.

Amazon's move comes even as a growing number of quick commerce and food delivery players bank nominal fees on their high volumes of orders to improve the profitability of these platforms.

Food delivery platforms like Swiggy and Zomato charge a flat Rs 10 platform fee on all orders. It was introduced in 2023, going as low as Rs 2 per order, but the fee has been gradually increased with the latest hikes taking it to Rs 10 per order.

Similarly, quick commerce players like Instamart and Blinkit, and even Zepto, which charge a version of a flat fee on all orders, are slowly moving away from temporary surcharges and hikes to standard cost as they look to offset the heavy cash burn associated with the sector.