On March 27, 2025, Amazon India rolled out its new pricing policy, slashing referral fees to 0% commission on over 1.2 crore products priced under ₹300, effective April 7, 2025. Marketed as a boost for small sellers, it promises relief from commissions while adjusting shipping and closing costs. But for self-ship sellers, a closing fee increase from ₹7 to ₹45 per item paints a darker picture. Is Amazon India’s new pricing a lifeline—or the death blow to self-ship sellers? Here’s why it might be the latter.
What Is Amazon India’s New Pricing?
The Amazon India new pricing eliminates referral fees (previously 2%-16%) on low-cost items like apparel, groceries, and toys—over 1.2 crore products across 135+ categories. Alongside this, Amazon reduced Easy Ship rates from ₹77 to ₹65 and cut weight handling fees for lighter goods. For sellers using Amazon’s fulfillment options, this could mean savings. But for self-ship sellers, the catch is a steep closing fee increase, jumping from ₹7 to ₹45 per item under ₹300, as detailed on Amazon’s “Fees and Pricing” page (sell.amazon.in/fees-and-pricing).
Self-Ship Sellers: A Vital Small Seller Model
Self-ship sellers operate under the Merchant Fulfilled Network (MFN), using their own couriers instead of Fulfillment by Amazon (FBA) or Easy Ship. This model is a cornerstone for small sellers in India, especially rural entrepreneurs and micro-businesses who rely on flexibility and local logistics to keep costs down. Historically, they managed modest referral fees (e.g., ₹15-₹30 on a ₹299 item) and a ₹7 closing fee alongside shipping expenses. Now, Amazon India’s new pricing threatens to dismantle this balance.
How the Closing Fee Increase Hits Self-Ship Sellers
The 0% commission sounds promising, but the closing fee increase flips the script for self-ship sellers. Here’s how the numbers stack up under the new pricing:
Old vs. New Pricing Breakdown
- ₹299 Item (Self-Ship)
- Old Fees: Referral (10%) = ₹29.90 + Closing = ₹7 = ₹36.90
- New Fees: Referral = ₹0 + Closing = ₹45 = ₹45
- Impact: +₹8.10 per sale
- ₹150 Item (Self-Ship)
- Old Fees: Referral (10%) = ₹15 + Closing = ₹7 = ₹22
- New Fees: Referral = ₹0 + Closing = ₹45 = ₹45
- Impact: +₹23 per sale (over 100% increase)
Add typical shipping costs (₹30-₹50), and a ₹150 item now costs ₹75-₹95 in fees—devastating margins on low-value goods, which means self ship sellers wont be able to sell low value goods any longer.
Why Self-Ship Sellers Are Vulnerable
Unlike Easy Ship or FBA sellers, who benefit from reduced shipping rates and lower closing fees (often ₹5-₹20), self-ship sellers get no such perks. They’re locked out of Amazon’s shipping discounts and face rising courier costs in India. The closing fee increase to ₹45 is a fixed hit, unavoidable for sub-₹300 sales. For a seller moving 100 units monthly, that’s an extra ₹3,800—enough to crush profits or force price hikes in a price-sensitive market.
Is Amazon India’s New Pricing a Death Blow?
The Amazon India new pricing raises a critical question: can self-ship sellers survive this shift? The evidence suggests it’s a death blow disguised as relief.
Profit Margins Vanish
The closing fee increase guts profitability:
- A ₹150 item with ₹45 fees plus ₹40 shipping totals ₹85—over half its value.
- For small sellers with slim margins, this is a breaking point—raise prices and lose customers, or absorb the cost and bleed cash.
Social media on X echoes the pain, with sellers calling it “a hidden fee grab” that negates the 0% commission promise.
No Way Out for Self-Ship Sellers
Self-ship sellers have few options. Cheaper shipping deals or bundling orders can’t offset the fixed ₹45 fee. Switching to Easy Ship (₹65 shipping) or FBA might lower fees, but it demands capital and sacrifices autonomy—hurdles many small sellers can’t clear. Amazon’s multi-unit shipping discounts don’t apply to self-ship, leaving them stranded under the new pricing.
The End of Self-Ship Selling
The ripple effects could finish off self-ship:
- Rural Sellers Exit: Those relying on local couriers to reach urban buyers may fold, shrinking diversity.
- Forced Migration: Sellers may ditch self-ship for FBA or quit Amazon, favoring bigger players.
- Model Collapse: If costs persist, self-ship could vanish, cementing Amazon’s logistics dominance.
Starting April 7, 2025, self-ship sellers face an existential threat—Amazon India’s new pricing might be their final straw.
Amazon India’s New Pricing is a Strategic Move
The new pricing isn’t just about fees—it’s a play to flood the platform with low-cost listings to rival Flipkart and ONDC while pushing sellers into FBA and Easy Ship. For those users, the 0% commission could work. But for self-ship sellers, it’s a trap. The closing fee increase ensures they pay more, nudging them toward Amazon’s fulfillment network where it profits from storage and shipping. For Self ship sellers, this isn’t relief—it’s a calculated death blow, poised to reshape Amazon India’s marketplace into a more controlled, less inclusive space by April 7, 2025.