Amazon India has introduced a new flat Rs 5 marketplace fee on every customer order, effective immediately. The fee — inclusive of all taxes — is designed to support the platform’s operational costs while continuing to provide a wide range of products from millions of sellers. “This flat fee—applicable to all customers — supports Amazon’s commitment to provide a seamless and valuable shopping experience,” said the company in a blog post.
While common in global e-commerce practices, this move marks a notable shift in how Amazon structures its charges for Indian customers, including Prime members. Notably, the likes of Zomato and Swiggy have been charging similar fees for a while now.
What is the marketplace fee?
The marketplace fee is a fixed charge of Rs 5 applied to every order placed on Amazon.in. According to the company, the fee helps maintain its vast seller ecosystem and logistics infrastructure. It will appear as a separate line item during checkout, ensuring transparency for customers.
Is anything on Amazon exempt from this fee?
Not all transactions are subject to this fee. Exemptions include:
•Gift card purchases (physical and digital)
•Orders via Amazon Business, Bazaar, Amazon Now, and Amazon Fresh
•Digital services like recharges, bill payments, ticket bookings, and subscriptions
•Orders with other processing or exchange fees already applied
This fee will also not be visible on Pay on Delivery orders unless future policy updates specify otherwise.
What about Prime members?
Prime customers are not exempt from the Rs 5 charge. The marketplace fee applies uniformly to all users, regardless of membership status, making it a universal addition to order costs.
How will refunds work?
Refund policies around the marketplace fee depend on how much of the order is canceled, rejected, or returned. In the blog post, Amazon detailed the refund policy:
•Full Cancellation Before Shipping: Fee is fully refunded.
•Partial Cancellation Before Shipping: Fee is refunded proportionally.
•Full Doorstep Rejection: Full refund.
•Partial Doorstep Rejection: Proportional refund.
•Returns After Delivery: No refund of the fee, even for full returns.
Where to find the fee?
You’ll see the marketplace fee listed:
•On the order summary page before payment
•In your order confirmation and shipment emails
•On downloadable invoices via ‘Your Orders’
While Rs 5 might seem negligible, this move could add up for frequent shoppers. Amazon maintains that the fee is essential for sustaining its seller platform. Still, some users — especially Prime subscribers — may view it as a hidden cost that chips away at the value of “free shipping.”
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