New Delhi, June 4 -- Amazon has introduced a flat Rs.5 marketplace/platform fee on all customer orders in India, including those from Prime members. The move aligns it with competitors like Blinkit, Zepto and Swiggy Instamart, all of which have added similar fees in recent months. Flipkart had rolled out a Rs.3 fee in mid-2024. This marks Amazon's entry into a broader pricing strategy increasingly adopted across Indian e-commerce and quick-commerce platforms. What began as pilot surcharges has gradually become standard practice. "It's a behavioural pricing play-Rs.2-5 is too low to trigger user churn but enough to anchor future hikes. It normalises the idea of paying per order, giving platforms room to raise it later without sudden backlash," said Indranuj Pathak, manager, public policy, Primus Partners. Analysts note that platforms often rely on small, per-order charges to offset rising costs in delivery infrastructure, staff and fuel. "And at the scale these platforms operate, even a Rs.1 fee added to every order helps cover rising expenses," Pathak said. Amazon redirected emailed queries from Mint to a blog post published on May 19. Amazon's decision to apply this charge-which is non-refundable-solely in India highlights the country-specific challenges: high volumes, low margins and price-sensitive customers. "India delivers huge volume but wafer-thin margins. Prime subscriptions here cost Rs.399-1,499 a year versus $139 (around Rs.11,500) in the US, so membership revenue covers a far smaller share of delivery costs. A flat Rs.5 fee is the simplest way to plug that gap without touching headline product prices," said Pathak. While the exact number of daily orders handled by Amazon India is not publicly disclosed, order volumes spike significantly during major sales events. For instance, during Prime Day 2024, Amazon India recorded a peak order rate of 24,196 orders per minute, according to media reports. Platforms are also banking on habit and urgency to make the fee stick. Low or zero delivery fees attract new users by lowering the entry barrier. "Shoppers often switch apps when faced with surge or high delivery fees. Gradually increasing fees helps platforms improve margins and encourages larger basket sizes, making the model more sustainable," said Subhendu Roy, a partner at Kearney India....