Seller Central fee update increases commission rates in selected product categories, impacting pricing and profitability for affected sellers

By Hani Jain

Amazon India sellers operating in the Fans and Robotic Vacuums category, as well as Automotive Tyres and Rims, will soon face higher referral fees as part of a scheduled Seller Central fee update. The revised fee structure will take effect on June 10, 2026, and could influence product pricing, margins, and advertising strategies for sellers in these categories.

The changes apply only to specific price bands and categories, while all other referral fee structures remain unchanged.

What Is Changing in Amazon India’s Referral Fees?
Referral fees are the commissions Amazon charges sellers on each sale. These fees are calculated as a percentage of the product’s selling price and are one of the key costs sellers must account for when managing profitability.

Under the latest update, Amazon India will increase referral fees in two categories:

i) Fans and Robotic Vacuums
ii) For products priced between ₹1,000 and ₹5,000, the referral fee will increase from 4.5% to 7.0%.

Products outside this price range will continue under the existing fee structure.
Automotive – Tyres and Rims

For products priced at ₹1,000 and above, the referral fee will increase from 3.0% to 7.0%.
This represents one of the largest percentage increases among the affected categories.

Also Read: Amazon India rolls out new seller learning path with benefits up to ₹1 lakh

Why Amazon Is Updating These Fees
According to Amazon India, the revised referral fees are intended to support ongoing investments in seller tools and services while also reflecting broader economic changes. The company indicated that the adjustment is designed to help maintain and improve the marketplace ecosystem for sellers and customers.

How the Fee Increase May Affect Sellers
Sellers in the affected categories should review their cost structures before the changes take effect.
For example, a seller offering a fan priced at ₹3,000 currently pays a referral fee of ₹135 at 4.5%. Under the new 7% rate, the referral fee would increase to ₹210, resulting in an additional ₹75 per unit sold.

Similarly, tyre and rim sellers could see a more noticeable impact because referral fees are rising from 3% to 7%, more than doubling the commission cost on eligible products.

Questions many sellers may ask include:
Will product profitability decrease?
Yes. Sellers with thin margins may experience reduced profits unless pricing or operational costs are adjusted.

Will Amazon automatically apply the new fees?
Yes. The updated referral fees will be applied automatically beginning June 10, 2026. Sellers do not need to take any action.

Should sellers increase product prices?
That depends on market competition, demand, and margin structure. Sellers may need to evaluate whether pricing adjustments are necessary to maintain profitability.

Seller Impact
The update is likely to affect:

Amazon FBA sellers in Fans and Robotic Vacuums
Amazon FBM sellers in affected categories
Automotive tyre and wheel sellers
High-volume marketplace sellers with low margins
Sellers running aggressive advertising campaigns where profitability is already constrained

Businesses with strong margins may absorb the increase more easily, while smaller sellers could face pressure to revisit pricing strategies, sourcing costs, and advertising budgets.

Important Dates and Fees
Effective Date: June 10, 2026

Fans and Robotic Vacuums

Product price: ₹1,000–₹5,000
Current referral fee: 4.5%
New referral fee: 7.0%

Automotive – Tyres and Rims

Product price: ₹1,000 and above
Current referral fee: 3.0%
New referral fee: 7.0%

Practical Takeaways for Sellers

Review product-level profitability before June 10.
Recalculate Amazon FBA and FBM margins using the updated referral fee percentages.
Assess whether price increases are feasible without affecting sales velocity.
Monitor advertising return on ad spend (ROAS) after the fee adjustment takes effect.
Update internal forecasting models for inventory planning and profit calculations.
Consider optimizing sourcing and operational costs to offset higher marketplace fees.

Conclusion
The latest Amazon Seller Central fee update introduces higher referral fees for selected Fans, Robotic Vacuums, and Automotive Tyres and Rims products in India. While the changes affect a limited number of categories, sellers operating within these segments should prepare for increased selling costs beginning June 10, 2026. Reviewing margins, pricing strategies, and operational efficiency ahead of the implementation date may help sellers minimize the impact on profitability while continuing to compete effectively on the Amazon marketplace.

Also Read: Amazon Expands Ashray Rest Centres Across India, Introduces Mobile Units for Delivery Associates