SUMMARY
- Amazon India has announced a reduction in its selling fees across various product categories on its marketplace, effective September 9 onwards.
- It followed Piyush Goyal’s criticism of Amazon’s plans to invest a billion dollars in India to compensate for losses.
- This adjustment is projected to result in savings of Rs 34 per unit for the seller.
In the aftermath of Union Minister of Commerce and Industries Piyush Goyal’s critical remarks regarding Amazon’s alleged predatory pricing practices, the ecommerce major has announced a reduction in its selling fees across various product categories on its marketplace, effective September 9 onwards.
This declaration was made just a few days following Goyal’s criticism of Amazon’s plans to invest a billion dollars in India, arguing that these investments are not intended to benefit India’s economy but rather to cover up the significant losses the company faced over the year.
According to the revised pricing structure, there will be a reduction in selling fees ranging from 3% to 12% across a diverse array of product categories. Amazon has emphasized that this new pricing model, particularly, will benefit sellers offering products priced below Rs 500. For example, a seller offering printed t-shirts at a price of Rs 299 will now be subject to a reduced referral fee of only 2%, a significant decrease from the previous rate of 13.5%. This adjustment is projected to result in savings of Rs 34 per unit for the seller.
These fee reductions are applicable across a broad spectrum of product segments, including home furnishing (9%), indoor lighting (8%), home products (8%), among others.
In a statement, Amazon has clarified that the revised pricing structure is designed to provide a significant advantage to sellers as they gear up for the forthcoming festive season. The company’s objective, according to its statement, is to foster a deeper partnership with sellers of all sizes, thereby enabling them to expand their product offerings on Amazon.in and to enhance their business growth.
However, Amazon has also made it clear that these fee reductions are not a temporary measure. They are intended to empower sellers to optimize their operations in anticipation of the Diwali shopping surge and to lay the groundwork for sustained success beyond the festive period.
The overall reduction in fees will impact seller fees across 59 sub-categories within various pricing bands. Furthermore, Amazon has announced a reduction in referral fees for low-priced selections across an extensive range of product categories, including home, apparel, kitchen, home improvement, wireless accessories, office products, sports, shoes, luggage, pet, jewelry, beauty, watches, and others, with even greater reductions observed in categories such as home, apparel, and kitchen.
Additionally, Amazon has stated that it has made adjustments to the weight handling fee for fulfillment centers, seller flex, and easy ship services.
Amit Nanda, Director, Selling Partner Services, Amazon India said, “At Amazon, we are invested in supporting businesses of all sizes, from small and medium businesses to emerging entrepreneurs to established brands. The fee reduction is directly in response to feedback from our sellers, especially small businesses. With this, we’re taking a significant step towards creating a more seller-friendly ecosystem.”
