Reduce Your Amazon Selling Costs: Complete Guide to Fee Change 2025

Amazon announces its highest-ever reduction in referral fees, enabling businesses to offer more competitive prices and save up on referral fees. Referral fee is a commission that sellers pay to Amazon for each product sold. As of 2025, Amazon IN Marketplace has introduced substantial seller fee reductions, for products priced below ₹300, across 135+ product categories.

More than 1.2 crores products that are priced below ₹300, including apparel, beauty, kitchen essentials, toys, and automotive accessories among others, now carry zero referral fees, effectively reducing overall selling fees. Additionally, Amazon has lowered weight handling fees for items weighing under 1kg, thereby further lowering the overall fees that sellers pay to Amazon. These changes aim to enhance affordability for sellers while promoting a more competitive marketplace.

So, what does this mean for you? You can price your products more competitively, boost your savings per sale, and scale your business more efficiently. In this guide, we’ll break down these fee reductions and share smart strategies to minimize your costs while maximizing your earnings. Let’s get started!

Amazon Referral Fees 2025: Maximize Savings with Zero Referral Fee on more than 135 product categories and Changed Weight Handling Costs.

Before we dive in, let’s take a look at the different types of fees involved in selling on Amazon.in. These include referral fees, closing fees, and weight handling fees, each playing a role in the overall cost structure. Understanding these charges can help you make informed decisions and maximise savings.

Referral Fees: It is the fee that the sellers are charged to get the benefits of being part of Amazon.in. It applies to each item sold and is calculated as a percentage of the total selling price
Weight Handling Fee: If you use fulfilment by Amazon (FBA) or Easy Ship (ES) as your delivery method, Amazon.in delivers your products to customers and levies a fee, which is termed as weight handling fees. In addition, if you are part of the Seller Flex program this fee will also be applicable.
Closing Fee: This is a fixed fee based on the item price that is paid by the buyer (including any shipping or gift-wrap charges charged by the seller)

Which categories boost your savings?

Selling in the eligible category can boost your savings on selling fee significantly.

How to optimize your Amazon selling strategy?

How to reduce Amazon’s Weight Handling Fees?

Amazon’s weight handling fee change presents another significant cost-saving opportunity. In 2025, shipping fees for lightweight products under 1kg have been further reduced, making fulfillment more affordable and efficient for sellers. Fees for Shipping/Delivery starts at Rs. 29 per item shipped, varies by item volume & distance.

We recommend optimizing your packaging – Consider reducing package dimensions to minimize dimensional weight charges.
Consider creating multi-pack offerings – Explore multi-pack options to increase average order value while maintaining shipping costs.
Strategically Store Inventory – If you store inventory strategically by placing inventory near high-demand locations, you may potentially save shipping.

Let’s crunch the numbers: Saving calculation example

Here’s a real-world example of how much you can save:
Example calculation for a saree (₹299) using easy ship:

With the new fee structure, you earn ₹40 more per unit—a major win!

Final Words

The new Seller Fee reductions can give you a leg up in boosting your savings by selling on Amazon and help scale your business to new heights. With this guide, you should be able to find your way around these reductions to position and sell your products in the best way possible. Start leveraging these fee reductions today. Visit Seller Central to review your product pricing and maximize your savings!

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