Effective on May 31st! Amazon India will adjust multiple seller fees!

Amazon India to adjust multiple seller fees from May 31st

According to foreign media reports, Amazon India will increase the commission rates for certain product categories, including beauty and personal care, baby care, automotive products, groceries, and drugs. The new rates will take effect on May 31, 2023.

“The adjustment of seller fees is based on various factors, including changes in market dynamics and various macroeconomic factors. As part of the fee adjustment, we have made changes to the rates of certain categories, including introducing new fee categories and reducing fees for certain categories.” said a spokesperson for Amazon.

It is reported that Amazon India earns money by charging sellers a percentage of the final selling price (product price, including shipping). It adjusts its fees based on market prices and also charges an additional 18% consumption tax.

Industry experts say that the increase in fees may mean that product prices on the Amazon platform will be higher because third-party sellers may pass on the increased costs to customers to offset high commissions.

Amazon’s seller page on its website states that the commission for over-the-counter drugs (common medicines that can be purchased without a doctor’s prescription) will increase the most, with the sales commission for over-the-counter drugs priced below 500 rupees increasing from 5.5% to 12%; for over-the-counter drugs priced above 500 rupees, it will charge a commission of 15%.

For the beauty and personal care category, Amazon will charge a commission of 9% for products priced over 1,000 rupees. Subcategories under the clothing category, including underwear, accessories, and ethnic clothing, have also seen an increase in commission rates. The sales commission for pajamas priced above 500 rupees has increased from 13% to 15%.

The commission rates for the grocery category, including herbs and spices, have also been adjusted. For products priced below 500 rupees, Amazon charges a commission of 2.5%, which is lower than the previous 4.5%, but for products priced above 1,000 rupees, the commission has increased from 8% to 9%.

In the categories of clothing and appliances, the commission for goods priced below 500 rupees has also decreased. However, the drop is small, and the impact is minimal. One seller pointed out.

BusinessDialogue learned that in addition to raising sales commissions for some categories, Amazon India has also increased the return fees that sellers have to bear. The new fee structure divides sellers into four levels based on the number of orders completed, customer feedback, comments, and returns, including basic, standard, advanced, and premium.

In addition, the e-commerce giant has also increased the long-term storage fees for items. If the inventory storage time in Amazon’s warehouse exceeds 365 days, the cost per unit will increase from 30 rupees (850 cubic feet) to 40 rupees (1105 cubic feet).

“We value your feedback and are committed to improving your sales experience and the customer shopping experience on Amazon.in. We have made some adjustments to our fee structure. Please note that these changes will take effect from May 31, 2023. The fee adjustment emphasizes our commitment to making Amazon.in one of the top priority markets for sales in India,” the company said on its website.

Editor: Nicole/BusinessDialogue

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