Amazon India Adds ₹5 Fee Per Order to Offset Delivery Costs and Boost Margins

Amazon has implemented a flat ₹5 marketplace fee on all customer orders in India, including for Prime members, aligning with rivals like Flipkart, Blinkit, and Swiggy Instamart. The India-specific charge reflects the platform’s need to offset high delivery costs in a low-margin market where Prime subscriptions are significantly cheaper than in the U.S. Analysts say the fee normalizes per-order surcharges without triggering user churn, offering Amazon a path to sustainable profitability. At scale, even a ₹1–₹5 fee per order can materially improve Amazon India's bottom line.