US-based retailer Amazon will remove referral fees on products priced below Rs1,000 ($10.94) in India from 16 March, covering over 125 million items.

The policy marks a tenfold expansion of last year’s waiver, which applied to more than 12 million products priced under Rs300 across 135 categories.

Amazon India said the revised structure could cut total selling fees by as much as 70% for merchants.

In addition, Easy Ship charges will fall by more than 20% for items priced below Rs300.

The company said its earlier fee waiver for sub-Rs300 products helped increase its seller base to nearly 1.7 million, with notable growth in Tier 2 and Tier 3 cities and higher new seller registrations.

The broadened exemption spans everyday merchandise, including clothing, electricals, homeware and toys.

Amazon said a fashion jewellery priced at Rs999 shipped via Easy Ship could save sellers Rs224 per unit, a 69% fee reduction, while earphones priced at Rs798 fulfilled through Fulfilled by Amazon could save Rs139 per unit, or 56%.

Easy Ship is Amazon’s India-specific fulfilment service where sellers dispatch from their own premises, and Amazon handles collection and delivery.

The company said the latest reductions are intended to reduce entry barriers for new sellers and allow existing merchants to reinvest savings in their businesses.

Amazon added that it has rolled out AI-based tools to streamline seller activities such as creating listings, managing inventory and analysing customer data.

In its statement, the company said: “This reduction in fees lowers the barriers for new sellers considering their first listing on Amazon. For those already growing with us, it means more savings to reinvest.

“For customers, it means more selection and better value. For India, it means more small businesses participating confidently in the digital economy, and more entrepreneurs in smaller towns and cities seeing e-commerce as a viable, sustainable path to growth.”