Amazon India Crosses 2 million Sellers as AI and Zero Fees Fuel Seller Boom

Amazon has crossed 2 million (20 lakh) sellers on Amazon.in, marking its strongest year-on-year seller-base growth in three years as entrepreneurs increasingly turn to lower fees and AI-powered tools to compete for India’s festive shopping boom.

More than 3 lakh sellers have joined Amazon.in, according to Amazon India, taking its seller community beyond the 2 million mark ahead of the crucial October-December shopping period.

The milestone comes as Indian businesses from small-town entrepreneurs to established brands—prepare for a surge in online demand.

Amazon’s latest push is increasingly focused not just on bringing more sellers onto the platform, but on giving them artificial intelligence tools to run, advertise and scale their businesses.

Zero Referral Fees Add Fuel to Amazon’s Seller Push

One of the biggest changes supporting the expansion is Amazon India’s fee reduction.

The company said its fee revision earlier this year introduced zero referral fees across more than 12.5 crore products, potentially reducing the cost of selling for entrepreneurs.

The move comes as ecommerce platforms compete aggressively for sellers and brands seeking access to India’s rapidly expanding digital consumer base.

For smaller businesses, lower marketplace costs could make it easier to test new products, build online catalogs and compete during major sale events.

AI Is Becoming Amazon Sellers’ New Assistant

Amazon’s biggest bet, however, may be artificial intelligence.

Its Seller Assistant, a conversational AI tool available 24/7 in English and Hinglish, helps sellers with tasks including listing creation, inventory planning, fee estimates, business insights and growth recommendations.

Seller adoption is accelerating rapidly.

Amazon said sellers using Seller Assistant are doubling every six months, while interactions with the tool have increased 7.5 times year over year.

Other AI tools are also gaining traction.

More than 2 lakh sellers are using Amazon’s AI-powered listing capabilities, while more than 28,000 sellers use Product Opportunity Explorer to investigate potential demand and lower-competition opportunities.

Amazon Seller Preparedness for Festive Season

Amazon Says AI Is Changing Seller Advertising

The AI push extends into advertising.

Amazon said the share of its advertisers using AI-powered advertising tools increased 77% year over year.

Small and medium-sized businesses generated 62% more advertising creatives using AI during Q1 2026 compared with the same period a year earlier.

Tools such as Creative Agent and Creative Studio are designed to allow sellers to produce professional-quality advertising content, including video, without traditional production resources or additional costs.

Amazon Ads is also connecting brands with a creator ecosystem of more than 5 lakh creators, potentially giving smaller sellers another route to reach consumers.

AI Inventory Planning Could Become a Major Advantage

For sellers, AI is not only about making advertisements.

More than 69,000 sellers used Amazon’s Sale Event Planner this year to prepare for major shopping events.

Amazon said sellers who followed its AI-driven inventory recommendations experienced 35% fewer stockouts, while sellers who acted on recommended deal prices recorded a 2.5x increase in sales.

Its Samriddhi recommendation engine also identifies personalized growth opportunities.

Amazon said sellers using Samriddhi are 2.8 times more likely to consistently beat their sales baseline across sale events, while sellers who acted on recommendations achieved a 174% increase in annual sales.

These figures are Amazon’s own reported results and should not be interpreted as guaranteed outcomes for individual sellers.

1.6 Lakh Seasonal Jobs Created for Festive Demand

Amazon is simultaneously scaling its logistics operation for the shopping rush.

The company said it has created more than 1.6 lakh seasonal work opportunities across its India operations, supporting ecommerce and quick-commerce activity across 400 cities.

Amazon’s network includes fulfillment centers across 17 states, sortation centers across 20 states and nearly 2,000 Amazon and partner-owned last-mile delivery stations.

The company also said its network includes close to 28,000 Hub Delivery partners and thousands of Amazon Flex partners.

Amazon’s Bigger Bet: 1.5 Crore Businesses by 2030

The 2 million (20-lakh) seller milestone is therefore only one piece of Amazon India’s larger strategy.

The company says it is on track to bring advanced technology capabilities to 1.5 crore businesses by 2030.

Ahead of the festive season, Amazon is also organizing more than 20 Seller Connects and Ads Hive workshops across Indian cities to help sellers with catalog optimization, inventory planning, fulfillment and advertising.

Amazon’s message is increasingly clear: the next phase of ecommerce competition will not simply be about who has the most sellers.

It could come down to who gives those sellers the smartest technology to decide what to sell, how much inventory to hold, what price to offer, which customers to target, and what advertisement to show them.

And with 2 million (20 lakh) sellers now on Amazon. India’s festive ecommerce battle is about to get considerably bigger.