Amazon Slashes Seller Fees and Rolls Out AI Tools to Empower Merchants Ahead of Festive Shopping Surge

Amazon Cuts Seller Fees and Boosts AI Tools Ahead of Festive Shopping Season

Amazon India is shifting its approach, positioning itself as a full-stack business partner for its 1.7 million sellers, rather than just an e-commerce platform. With the festive season approaching, Amazon has slashed seller fees and introduced AI-powered tools to help sellers make the most of India’s biggest shopping period.

Earlier in 2025, Amazon reduced referral fees to zero for over 12 million products priced below ₹300. Recently, it extended fee cuts to fast-moving categories like fashion and home appliances. These changes especially benefit sellers from tier-II and tier-III cities, who make up more than half of Amazon’s seller base.

More Than Just a Marketplace

Amit Nanda, Director of Selling Partner Services at Amazon India, explains, “We have become a one-stop shop and a full-stack partner for sellers. We support product placement, promotion, advertising, and end-to-end selling.” This means sellers get comprehensive support beyond simple platform access.

Amazon’s flagship sale, the Amazon Great Indian Festival (AGIF) 2025, is expected to be the largest yet. Starting September 23 with early access for Prime members, AGIF will compete directly with Flipkart’s ‘Big Billion Days’ sale. Amazon has expanded its operations with 12 new fulfillment centers and six expansions, enhancing speed and reach, especially in smaller cities.

AI Tools to Scale Seller Success

To boost seller performance, Amazon is rolling out AI-driven dashboards and analytics for inventory and product planning. Generative AI features reduce product listing creation time by 70%, while an enhanced Seller University offers bilingual training and expert advice. Operational tools also improve delivery coordination.

This tech-driven support helps sellers efficiently handle the festive surge and sustain their growth afterwards. Nanda highlights, “Amazon is stepping in as a full-stack partner to solve remaining challenges, enabling sellers from smaller cities to grow faster than before.”

Festive Sales Outlook and Tax Updates

A recent report by Datum Intelligence projects festive sales to grow 27% to around ₹120,000 crore in 2025. Consumer sentiment is positive across urban and rural India, with increased spending on non-essential goods signaling strong demand.

The introduction of a simplified two-tier GST structure on September 22 is expected to boost sales by 15-20%. Amazon is updating its systems to ensure sellers transition smoothly to the new tax codes, reducing compliance hassles.

Key Numbers from Last Year’s Festival

• 1.4 billion customer visits during AGIF 2024
• 70% more sellers crossed ₹1 crore in sales
• Over 3 crore products delivered same or next day

For sales professionals, this means a significant opportunity to leverage Amazon’s expanded support and tools to increase reach and revenue during the most important shopping season of the year.

For those interested in boosting their AI skills to optimize sales strategies, exploring Complete AI Training’s courses can provide practical knowledge on using AI tools effectively.