Amazon India Tweaks Its Seller Policy; Revises Commission Rates

In a recent development, ecommerce giant Amazon India has reportedly altered the commission policies for sellers on its platform.

On the one hand, it has increased the commission rates for sellers in categories such as consumer electronic devices, automotive accessories, mobile phone covers and cases, desktop computers, and laptop batteries. On the other hand, it has reduced charges in categories such as furniture and kitchen appliances, according to a report by Mint.

Confirming the development, a spokesperson from Amazon India said, “As part of our fee revision, we have reduced fees and shipping rates on some popular categories, while increasing fees on certain others. We have reduced fees for popular categories like small appliances. Fulfilment fees that sellers incur to get their items shipped are also being reduced for oversize and heavy categories like furniture, large appliances, kitchen appliances and many more for both of our fulfilment channels—FBA and Easy Ship.”

Popular ecommerce marketplaces in India such as Flipkart, Amazon, and Snapdeal work on a marketplace model, where they connect buyers with sellers, while charging commission fees among other charges for connecting customers.

Amazon India essentially generates its sales via its services to third-party sellers, its in-house retailers and firms, and by selling Kindle e-books, Kindle readers, and accessories.

Further elaborating on the development, the spokesperson added, “In line with Amazon India’s constant endeavour to transform the way India buys and sells, all our seller enablement initiatives such as seller cafes, seller lending, Amazon Connect, EasyShip, fulfilment by Amazon etc. to name a few are committed to connecting an ever-greater number of sellers to customers, to achieve the widest possible selection available to them while at same time offering pan India and even global market access to our sellers.”

Prior to this, in April 2016, Amazon had increased the commission charged from sellers.

In June 2016, Flipkart increased the commission charged to the sellers on the platform. The increased commission rates were applicable from June 20. In July 2016, Snapdeal also altered its return policy, whereby it introduced cuts in a seller’s commissions. In September 2016, to aid the sellers on its platform, ecommerce giant Amazon India opened ‘seller cafes’ across 24 cities and towns in India.

This development was reported by Mint.