Amazon India hikes seller fees as festive sales end

The company has increased the fee it charges for storing inventory in its warehouses by Rs 5 per cubic foot per month, to Rs 50. Additionally, it is not going to reimburse sellers the closing fee for returned orders. This is what's charged to sellers for products sold on the platform, and ranges between Rs 6 and 21 based on the category.

These changes come right after the festive season. In September, Amazon India had reduced the referral fees (commission) it charges sellers for items sold on the platform.

On the recent tweaks, the company's seller's page showed a message: `As we continue this journey together, we will be implementing updates to storage fees, refund fees, the closing fee policy for customer return orders and weight handling fee calculations for SIOC (Ship in Own Container) shipments. These changes will take effect from 15 November 2025.'

Amazon India did not respond to ET's queries at the time of publication of this story.

Multiple sellers told ET that the revised fees are likely to increase their costs. “Since November to April is usually a dull season, many sellers don't store much inventory in Amazon warehouses. The price hike is likely to compensate for this,” said a merchant who did not wish to be named.

Additionally, Amazon India has reduced the refund fee charged to its sellers for apparel and shoes, categories which usually have a high return rate. These changes come at a time when the company is focussing on costs as it expands its quick commerce arm Amazon Now.

The revenues from operations of Amazon Seller Services, the marketplace arm of Amazon India, rose 19% from the year before to Rs 30,139 crore in FY25. Its losses narrowed 89% from FY24, to Rs 374 crore, as the company tightened its costs.

Source: EconomicTimes
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