Amazon India’s marketplace seller base has crossed 20 lakh (2 million) sellers, the company announced on September 8, 2026, with more than 3 lakh new sellers joining the platform in the latest growth phase. Amazon credited lower selling fees, including zero referral fees across more than 12.5 crore products, alongside wider adoption of AI-powered seller tools for the acceleration.
The milestone underscores how deeply e-commerce has penetrated India’s small and medium business landscape, with sellers ranging from home-grown D2C brands to manufacturers and traders now using Amazon’s marketplace to reach customers well beyond their home cities. Amazon has been investing heavily in tools like Seller Assistant, an AI-based support system, to make onboarding and catalogue management easier for first-time sellers.
What Is Driving the Surge in Amazon India Sellers?
Two factors stand out: fee cuts and AI tooling. Amazon’s decision to waive referral fees across a large share of its catalogue has lowered the barrier to entry for small manufacturers and traders who previously found marketplace commissions unattractive. At the same time, seller interactions with Amazon’s AI-powered Seller Assistant have grown roughly 7.5 times year-on-year, helping sellers with everything from listing optimisation to demand forecasting without needing dedicated e-commerce staff.
What Does This Mean for Indian Small Businesses?
For India’s small and medium enterprises, the milestone signals that online retail is no longer optional infrastructure — it is becoming a primary sales channel. Amazon has reported that the share of advertisers using its AI-powered advertising tools rose 77% in early 2026, while small and medium businesses created 62% more ad creatives using AI generation tools in the same period, pointing to AI adoption becoming mainstream among India’s smallest sellers rather than just large brands.
Industry Reaction and Expert Commentary
E-commerce analysts have noted that the 20 lakh seller milestone puts Amazon India’s marketplace scale close to that of domestic rivals Flipkart and Meesho, intensifying competition for seller acquisition ahead of the festive shopping season. Industry watchers say the fee waivers are as much a competitive response to low-cost rivals as they are a genuine push to widen marketplace participation among first-time digital sellers in smaller towns.
What Happens Next?
Amazon is expected to lean further into AI tooling ahead of India’s festive quarter, when seller sign-ups and ad spending typically spike. The company has signalled it will keep expanding zero-referral-fee categories and continue rolling out generative AI features for catalogue creation and advertising as it competes for share of India’s fast-growing online retail market.
Frequently Asked Questions
How many sellers does Amazon India now have?
Amazon India’s seller base crossed 20 lakh (2 million) as of September 8, 2026, with over 3 lakh new sellers joining in the latest growth phase.
Why are more sellers joining Amazon India?
Lower selling fees, including zero referral fees on more than 12.5 crore products, combined with AI-powered tools for listing, forecasting and advertising, have made onboarding easier for small and first-time sellers.
How are sellers using AI tools on Amazon India?
Sellers are using Amazon’s AI-powered Seller Assistant and ad-creative generation tools, with interactions up 7.5x year-on-year and SMBs creating 62% more ad creatives using AI in Q1 2026.
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