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Amazon brings change in seller-fee structure, makes it cheaper to ship locally
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
In total, the fees will increase for 24 categories, fall for 32 and no change in 48 categories. The 48 unchanged categories include mobiles, laptops, books and small appliances.
E-Commerce major Amazon is looking to motivate its sellers to focus on local markers to deliver products cheaper and quicker to its customers, reports the Economic Times.
According to the report, the company is also looking into pushing certain categories.
To achieve the objective, the local unit of the firm brought several changes to its seller fee structure. The structure shows that the firm has made it cheaper for sellers to ship locally, so that there is faster delivery to locals. The firm has, in turn, increased costs for regional and national shipping.
The firm has reduced the fees for selling on the platform by up to 70% in categories such as daily essentials and apparel, but increased 50% for items like shoes, home improvement accessories, power banks and charges, stated the report.
In total, the fees will increase for 24 categories, fall for 32 and no change will be made in 48 categories. The 48 unchanged categories include mobiles, laptops, books and small appliances.
For a healthy grocery push, the seller fees in the category have been reduced to 3% from 7%, as the company takes on Alibaba-backed Big-Basket and Flipkart.
The online major is also evidently giving a push to its fashion category, where it lags behind Flipkart. The firm reduced its seller fees in apparel to 17% from 19.5%.
According to the report, the firm said that the new rates will apply to all sellers in the marketplace. However, they did not comment on Cloudtail and Appario, two sellers in which Amazon has a stake.
Sellers told the daily that both Flipkart and Amazon had been changing fee structures over the past few years to keep their rates on par. This was so that they do not lose merchants to the other.
Flipkart in November lowered commissions by 5% for items priced below Rs 300 in many categories, in a bid to encourage sellers to offer their products at lower prices.
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