Ahead of festive season, Amazon cuts seller fee, deploys AI

Amazon India has rolled out major changes to support its 1.7 million sellers as the 2025 festive shopping season approaches. The e-commerce firm has reduced referral fees across a range of product categories. Apparel priced between ₹500 and ₹1,000 will now attract an 11% fee instead of 15%. Prescription drugs see a sharper cut, from 11% down to 7%.

Alongside these category-based reductions, Amazon has launched a “Sell More Save More” programme. Under this scheme, sellers get additional fee relief as their sales volumes grow — a move likely aimed at nudging sellers to expand their presence on the platform.

AI tools

To help sellers prepare for the surge in festive demand, Amazon India has introduced AI-powered tools to speed up catalogue management. These tools can reduce the time needed to create listings by as much as 70%, enabling sellers to upload and manage products more quickly. The idea is to help businesses keep pace with rising consumer interest as Diwali season approaches.

Amazon India is also strengthening its logistics network and expanding GST support across multiple states. This may help sellers simplify compliance and ensure faster deliveries during peak demand.

The company’s renewed push highlights its attention on small and medium businesses, especially those from tier-II and tier-III cities.

Industry watchers suggest these moves could soften some of the challenges sellers face in a competitive market. Festive sales in India are estimated to grow 27% this year, touching nearly ₹1.2 lakh crore.