Amazon India Introduces ₹5 Marketplace Fee on All Orders, Including for Prime Users

 

 

Amazon India has rolled out a new ₹5 marketplace fee on all customer orders, effective immediately. This charge applies universally, including for Amazon Prime users, marking a shift in the platform's value offering for its premium subscribers.

The Amazon ₹5 marketplace fee, which is inclusive of all applicable taxes, is designed to help the e-commerce giant tackle the growing cost pressures stemming from inflation, rising logistics expenses, and thin profit margins. Notably, this fee does not apply to select categories such as Amazon gift cards, digital services, and a few other exempted items.

With this move, Amazon India aligns more closely with its competitor Flipkart, which currently levies a ₹3 platform fee per order. While Flipkart's charge has been in place for some time, Amazon’s decision to follow suit reflects the increasing operational challenges faced by e-commerce platforms in India’s price-sensitive market.

Amazon cited the need to maintain service levels and continue investing in infrastructure and customer experience as the rationale behind the fee. The company emphasized that the ₹5 charge per order is a modest contribution meant to cover a portion of the rising costs related to warehousing, delivery, packaging, and technology upgrades.

Prime Users Also Affected

Perhaps most notably, this fee also applies to Amazon Prime India subscribers, who already pay ₹299 per month or ₹1,499 per year for faster delivery, exclusive deals, and access to Prime Video and Music. This update may raise concerns among loyal Prime members who previously viewed their subscription as a means to avoid additional fees on purchases.

Customer Reactions & Future Outlook

The introduction of this Amazon order fee has sparked mixed reactions online, with some customers expressing dissatisfaction, especially Prime users, while others acknowledge the realities of inflation and the need for sustainable business models.

As Amazon India continues to navigate a highly competitive and cost-intensive environment, this update may set a precedent for other e-commerce platforms. It also signals that even premium services may not remain fully insulated from cost recovery measures going forward.

This Amazon India update is part of a broader trend where global e-commerce platforms are re-evaluating their pricing structures and service models to ensure profitability and resilience in fast-evolving markets like India.