Amazon cuts seller fees, expands tech tools ahead of festive push

Amazon India is making its biggest bet yet on small businesses ahead of the annual Great Indian Festival, slashing fees and rolling out new technology tools to help 1.7 million sellers boost sales during the country’s largest shopping season.

The company said it has introduced its “highest-ever” fee reductions, including zero referral fees on more than 1.2 crore low-priced products and lower weight-handling charges for bulky items. The changes, effective from April and September, are expected to help sellers in categories such as fashion, beauty, home appliances, and healthcare offer sharper discounts.

The company is also doubling down on artificial intelligence to streamline seller operations. New tools include generative AI that can create product listings and images in seconds, a “Samriddhi Dashboard” for inventory planning, and promotions such as “Sell More Save More” that encourage bulk orders.

Amazon has expanded its fulfilment network with 12 new warehouses and six sortation centres, and hired 150,000 seasonal workers to meet the expected surge in orders. Sellers will also gain direct access to delivery associates through a new calling feature designed to reduce missed pickups.

The moves come after the 2024 festival season set records: Amazon logged 40 crore customer visits, 70% more sellers crossed the Rs 1 crore sales mark compared with the previous year, and over 85% of customers hailed from non-metro cities.

For small and medium enterprises, the platform is pitching ecommerce as a lifeline. In a release, the company told the story of Ramesh Saraswat, an incense maker from Vrindavan, who said joining Amazon in 2022 helped him grow sales 500% and employ 15 local women. “Before Amazon, sales were limited to festivals and tourist seasons; now orders flow year-round,” he added.

With India’s ecommerce market set for another bumper festive season, Amazon is betting that a combination of lower costs, faster logistics and AI-powered seller support will help it fend off rivals and deepen its reach across Bharat.