Amazon India is set to revise its seller fee from April 7 and there are speculations that customers will have to shell out more for products in certain categories.
Amazon makes money by charging commissions and fees from sellers for inventory storage, shipping and returns. The fee is levied when an item is sold on the platform.
The revision will not include the 18 per cent GST levied on the seller fee, reported Moneycontrol. The fee restructure was decided based on inflation, interest rates and operational costs, an Amazon India representative told the outlet.
“We recognise seller fees and incentives as strong long-term levers that will help sustain a robust thriving marketplace, focused on digitising small and medium businesses in the country and enabling them to grow into strong national brands. These changes reflect our commitment to make Amazon (India) one of the most preferred marketplaces for selling in India and creating right choices for sellers to grow efficiently,” the spokesperson told Moneycontrol.
Categories that will see a hike in seller fees include luxury beauty (from 5 to 10 per cent), home improvement (from 9 to 13.5 per cent), sleepwear (from 11-15 to 13.5-19 per cent), musical instruments (from 7.5 to 10.5 per cent) and flipflops (from 10-12.5 to 13-15 per cent). Some categories are set to see a dip in selle fee, including inverter and batteries (from 5-5.5 to 4.5 per cent) and baby apparels (from 11-21 to 11-20 per cent).
From October 1, 2023, Amazon started charging members of Amazon's Seller Fulfilled Prime programme a 2 per cent fee on every product sold. The programme allows third-party merchant to sell products with the Prime badge.
