HomeIndiaSeller Fee Review: Amazon Will Raise Fees Across All Categories

Seller Fee Review: Amazon Will Raise Fees Across All Categories

Starting May 31, Amazon India will increase seller fees for a number of key categories including clothing, beauty, groceries and medicines, and experts say the increase could make products more expensive on the platform, as that sellers are likely to pass the increase on to customers. The platform’s fees for handling product returns will also increase significantly.

“The seller’s fee revision is based on several factors, including the change in market dynamics and various macroeconomic factors. As part of our recent fee review, we have made certain changes to our rate card, including the introduction of new fee categories and also the reduction of fees in certain categories,” the company spokesperson said.

Seller fees are the commission Amazon charges sellers for selling their products on its platform. The move comes as the platform, like other tech companies, looks for ways to conserve cash and grow revenue channels amid a global slowdown.

Amazon has laid off a total of 27,000 employees since last year. indian amazon He did not respond to an immediate request for comment on what the hike required.

In the beauty products vertical that includes segments like hair care, bath and shower, the commission will rise to 8.5 percent for products under Rs 300. Previously, the platform charged a 7 percent fee for minor items. or equal to Rs. 500.

Sellers’ fees in the apparel category for both women and men have also been increased, from 19 per cent for goods over Rs 1,000 to 22.5 per cent in some cases.

While platform fees for grocery items, including herbs and spices, have been cut for smaller ticket purchases, a 2.5 percent cut for items under Rs 500 compared to a fee of 4, 5 percent above, has been increased in the case of a larger basket. Currently, an item worth more than Rs 1,000 attracts a fee of 8 percent which will increase to 9 percent.

The prices charged by sellers for issuing refunds to customers will increase by as much as 40 percent in some cases.

While Amazon doesn’t disclose the amount of overall returns on its platform globally, industry executives say it’s typically a big cost center for marketplaces like Amazon and Amazon. flipkart.

In the US, a 2021 National Retail Federation survey found that $761 billion worth of merchandise was returned to retailers in 2021.

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