Amazon cuts India seller fees up to 70%, invests €18B in Spanish AI data centres
Amazon will waive referral fees on 125 million India products under Rs1,000, cutting merchant fees by up to 70% while reducing Easy Ship charges by 20% for products under Rs300. It will invest €18 billion in Spain to expand data centres and AI, raising total investment to €33.7 billion.
1. Expanded Seller Fee Waiver in India
Amazon will eliminate referral fees on over 125 million products priced under Rs1,000 on its India marketplace. This marks a tenfold expansion of last year’s sub-Rs300 waiver and can cut merchant selling fees by up to 70%, with Easy Ship charges falling 20% for products under Rs300.
2. €18 Billion Spain Investment in Data Centres and AI
Amazon has pledged an additional €18 billion investment in Spain, bringing its total local commitment to €33.7 billion. The funds will expand cloud data centres and accelerate AI innovation, enhancing AWS capacity and supporting long-term digital infrastructure growth across Europe.
3. Strategic Implications for Growth and Margins
The India fee reductions aim to attract new sellers and deepen inventory in Tier 2 and Tier 3 cities, potentially driving faster revenue growth. The Spain investment underscores Amazon’s focus on scaling cloud and AI capabilities, strengthening its competitive position in Europe’s digital economy.