Amazon Seller Services India Posts First Operating Profit
Amazon Seller Services India has posted its first operating profit in FY26, driven by a 15.5% revenue growth and fee reductions for sellers. The entity's PBIT stands at ₹172 crore, marking a significant turnaround after it had turned Ebitda-positive in FY25 but remained below break-even due to depreciation.
The bulk of the incremental revenue came from the Stores business, which contributed 68% of the year's growth. Store revenue rose 12.6% to Rs 28,795 crore, an increase of Rs 3,233 crore over FY25. Within Stores, P3P fees charged to large sellers rose ₹1,512 crore, up 23%, while advertising revenue added ₹1,497 crore, up 19.9%. S3P fees grew ₹412 crore, or 3.9%, but growth stayed marginal due to fee investments.
Amazon has implemented significant fee reductions in India, with referral fees cut to zero on products priced below Rs 300 across more than 135 categories and weight handling fees lowered for items under 1 kg. The company also reduced closing fees on self-shipped orders and extended zero referral fees to products priced under Rs 1,000 across over 1,800 categories.
The cuts follow a wider trend in India's e-commerce sector, with Walmart-owned Flipkart extending its own zero-commission threshold to products below Rs 1,000 and Meesho building its seller base on a no-commission model. Amazon has committed $48 billion in India through 2030 and is investing heavily in infrastructure and worker welfare programs.