Amazon India: Revision comes amidst intense competition from Flipkart
Online retailer Amazon India has reduced the commission it charges its sellers across 22 categories including furniture, laptop bags and sleeves, home storage, eyewear, innerwear, luggage, wallets, backpacks, watches, etc . The fee revision will be effective July 15 and comes at a time when the e-commerce company is facing intense competition from its rival Flipkart, which is in process of being acquired by US-based retail giant Walmart.
“At Amazon, we have always believed in working backwards from sellers need and make selling on our marketplace easier and profitable for them. In the recent fee change, we have reduced referral fee across 22 categories, have lowered fee across various components such as weight handling, pick and pack fee for oversized items to provide sellers the flexibility to reduce their costs of doing business on Amazon and serve the customers better,” an Amazon India spokesperson said, in response to a query by The Indian Express.
“Our constant endeavour is to ensure that our rate card is optimum from a seller’s cost of doing business perspective. Seller success is and will continue to remain an important focus area for us,” the spokesperson added.
The previous such change in commission, or the referral fee, was done in April, when Amazon India had decreased the referral fees in over 30 categories, which ranged from 10 per cent to as high as 75 per cent. However, in more than 20 categories like shoes, pet food and backpacks, the online retailer had increased the referral fee by up to 50 per cent.
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The revisions in referral fee effective July 15 are in categories that have charges ranging from 5.5 per cent to 20 per cent. Apart from the referral fee, Amazon India has also reduced the fixed fee it charges its sellers under the “Fulfilled by Amazon” programme, by 25 per cent on items priced over Rs 500, including shipping charges.
Despite a reduction in most of the fees and charges that Amazon levies on its sellers, the All India Online Vendors Association (AIOVA), which represents a group of online vendors selling on platforms such as Amazon and Flipkart, voiced dissent against the revision.
“Such frequent, non-consultative tariff changes need to be regulated. It is not about Amazon but the entire ecosystem, which is unregulated,” an AIOVA spokesperson said.
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
First published on: 20-06-2018 at 01:01:54 am
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