Overview

In early 2018 Amazon launched a time‑limited referral‑fee discount aimed at sellers who listed very low‑priced products (≤ $7). The program lowered the mandatory minimum fee for qualifying new ASINs, giving sellers a chance to improve margins on budget items. Although the promotion ended in early 2019, its mechanics are useful for anyone tracking future fee‑reduction incentives.

Key Points

• Price ceiling — Only listings whose total price (item + shipping + gift‑wrap) did not exceed $7 qualified for the reduced fee.
• Two discount levels — Items priced at $3.50 or less received a $0.50 cut to the minimum referral fee; items priced between $3.51 and $7.00 received a $0.30 cut.
• New‑ASIN requirement — The fee break applied solely to ASINs created during a specific enrollment window in 2018; existing catalog entries were excluded.
• Category exclusions — Certain product categories (e.g., high‑value electronics, luxury goods) were barred from the program, meaning not every low‑price item automatically qualified.
• Seven‑day activation lag — The reduced fee did not take effect on the day of listing; it began charging at the promotional rate only after the first seven days of the item’s presence on Amazon.
• Limited sales window — Eligible sales could be generated through early 2019, giving sellers several months to benefit after the initial listing date.

How the Referral‑Fee Discount Operated

1. Identify the standard minimum fee — In most categories Amazon imposes a $1.00 floor on referral fees for low‑priced items.

   • Example: A $2.99 paperback normally incurs a $1.00 minimum fee, representing roughly 33% of the sale price.

2. Apply the tiered reduction — If the item’s total price is $3.50 or less, the $1.00 floor is cut by $0.50, leaving a $0.50 minimum fee. For prices between $3.51 and $7.00, the floor is reduced by $0.30, resulting in a $0.70 minimum fee.