Let me put this plainly: as someone who sells on Amazon India, I’ve felt the pinch of heavy logistics costs, especially when your product is light but margins are thin. That changed recently when Amazon reduced shipping charges and weight handling fees for lightweight products under 1 kg. These changes are a game-changer for new and growing sellers.
What Exactly Changed and Why It Matters
-
Flat shipping rate lowered (Easy Ship / Seller Flex)
From 7 April 2025, Amazon applied a new flat national shipping rate of ₹65, down from the earlier ₹77. This is a roughly 16% drop, meaning even if you ship a small, lightweight item, your base cost is lower.
-
Lower weight handling fees for <1 kg items
Amazon reduced the weight handling component by up to ₹17 for items under 1 kg. This means your cost for packaging + weight overhead shrinks.
-
Zero referral fees for items below ₹300
One of the biggest shifts: Amazon removed referral fees for over 12 million products (across 135+ categories) priced below ₹300. This applies to categories like apparel, beauty, toys, home décor, kitchenware, and more.
How These Cuts Help You If You Play It Smart
-
Better margins on low-ticket items
For products priced at ₹250–₹300, these cuts can turn a razor-thin profit into a real one. Because high shipping and commission charges used to cut deep into your profits. Now, you can price more competitively and still retain margin.
-
Experiment with light SKUs
If you’ve hesitated to test cosmetics, stationery, light accessories, or small gadgets, then this is your moment. With lower overhead, even niche, seasonal, or trial items can become viable.
-
Bundle for extra savings
If a buyer orders multiple units, Amazon says you can get up to a 90% reduction in selling fees on the second unit when shipped together. So pack combos or multipacks smartly to stretch the benefit.
-
Optimize packaging & warehouse placement
Since dimensional weight still matters, it’s smart to use minimal packaging and consider storing stock closer to demand zones (if you use Fulfillment or Seller Flex). Amazon even reduced Inbound Cross Dock (IXD) service rates by ₹3 (for <0.5 kg) and ₹5 (for 0.5–1 kg) to help.
A Word of Caution: Watch Out for Fee Swings & Edge Cases
-
If you’re self-shipping (not using Amazon’s fulfillment or Easy Ship), check whether closing fees or other commissions have changed in your case. Some sellers have flagged increases in “closing fees for self-ship” under new rules.
-
The fee cuts are generous for everyday low-value items, but for heavier or bulky categories, the savings may be modest.
-
Always run a unit economics check after these changes before you change pricing or SKUs.
Next Steps for New and Growing Amazon Sellers
-
Audit your current SKUs. Which ones are under 1 kg or under ₹300? Estimate your new net margins.
-
Test new lightweight products you’ve hesitated over.
-
Bundle wisely to benefit from multi-unit fee discounts.
-
Revisit your pricing strategy as you might pass some savings to buyers or use it to invest in ads.
-
Ensure you are registered and active with Amazon Seller Services.
