Amazon India Starts Charging Rs 5 Marketplace Fee: In a notable shift in its operational strategy, Amazon India has started charging a flat Rs 5 marketplace fee on every customer order, a move aimed at offsetting its platform’s growing operational costs. The e-commerce giant joins the ranks of Flipkart, Zomato, Swiggy, Zepto, and Blinkit, which have already implemented similar per-order platform charges.
In an official blog post, Amazon said, “This flat fee—applicable to all customers—supports Amazon’s commitment to provide a seamless and valuable shopping experience.” The company emphasized that the fee is part of its broader effort to enhance service quality and sustain delivery efficiencies.
Not Just Amazon: A Growing Trend in the Indian E-Commerce Landscape
With this development, Amazon becomes the latest major player in India’s booming e-commerce and quick commerce ecosystem to impose a standardized per-order charge.
- Flipkart, Amazon’s biggest rival in India, introduced a Rs 3 platform fee last year for all orders up to Rs 10,000.
- Its quick-commerce vertical, Flipkart Minutes, charges Rs 9 per order, while Myntra, its fashion-focused arm, collects Rs 20 per order as a platform fee.
- Zomato and Swiggy, India’s leading food delivery platforms, already charge handling fees ranging between Rs 4 and Rs 30, depending on the location and time of the order.
- Zepto and Blinkit, part of the emerging quick commerce segment, also follow similar fee models to recover last-mile delivery and operational costs.
Amazon Prime Not Exempt
In a significant update, the Rs 5 marketplace fee will also apply to Amazon Prime members, who already pay a subscription fee for faster and more exclusive deliveries. This move might raise eyebrows among long-term Prime users who have, until now, enjoyed nearly fee-free ordering.
However, Amazon Now, Amazon Business, and Bazaar—its dedicated arms for quick commerce, B2B, and wholesale—are exempted from this marketplace fee. Additionally, digital services like mobile recharges, bill payments, and gift card purchases will not attract the new charge.
For customers opting for pay-on-delivery or for orders with additional applicable charges such as exchange fees or offer processing fees, the marketplace fee won’t be listed separately. Instead, Amazon stated that the charge may be clubbed with other fees, either fully or partially, depending on the order.
Analysts: “Small Fee, Big Impact”
Market analysts believe that this fee structure, though small per order, can become a significant revenue stream for e-commerce platforms operating at thin margins.
“The rise of quick commerce has shown that Indian consumers are ready to pay a premium for convenience,” a senior analyst noted. “Amazon was actually the last major e-commerce platform in India to introduce a platform fee.”
This move reflects how e-commerce businesses are re-aligning their operational strategies to remain profitable amidst increasing fuel costs, last-mile delivery challenges, and evolving customer expectations.
Amazon Now: The Company’s Quick Commerce Bet
To stay competitive in the evolving Indian market, Amazon has launched its quick commerce offering, Amazon Now, which promises ultra-fast deliveries on everyday essentials. The service is Amazon’s answer to the rapid growth of Blinkit, Zepto, and Instamart.
Meanwhile, Amazon is also ramping up its core delivery services for orders placed on Amazon.in, with most products now reaching customers within 24 hours in major cities. For categories like groceries under Amazon Fresh, the company already offers two-hour delivery in select locations.
The Road Ahead
As India’s e-commerce space continues to mature, operational cost recovery through fixed charges seems to be a sustainable strategy—one that customers may increasingly come to accept in exchange for reliability, speed, and convenience.
However, the response from consumers—especially Prime subscribers—will be a key factor in determining how Amazon refines or expands this marketplace fee strategy in the coming months.
