E-commerce major Amazon India has announced a reduction in selling fees by 3-12% for 59 product sub-categories on the marketplace. This reduction will be effective from September 9, 2024.
The reduction has been more for lower priced products, especially below ₹500.
“For instance, a seller offering printed t-shirts at ₹299 will now pay a reduced referral fee of only 2%, a substantial drop from the previous fee of 13.5%. This results in savings of ₹34 per unit for the seller,” Amazon said in a statement.
Among other categories, seller fee has been reduced by 9% for home furnishing products, by 8% for indoor lighting and by 8% for home products.
Does this mean products will get cheaper in Amazon? Amazon India said in a Blogpost that as a marketplace, it does not have any role in the setting of prices and all price changes are the prerogative of the seller.
The fee reduction comes just ahead of the festive season that is set to see all e-commerce platforms face-off through their flagship sales, especially during Diwali. While the timing of the fee cuts aligns with the festive season, Amazon said that these changes are not temporary measures.
“With this, we are taking a significant step towards creating a more seller-friendly ecosystem. This will provide them with an opportunity to reinvest in their business for accelerated growth,” Amit Nanda, Director, Selling Partner Services, Amazon India said.
In addition, Amazon has said referral fees will be reduced in low-priced selection across Home, Apparel, Kitchen, Home Improvement, Wireless Accessories, Office Products, Sports, Shoes, Luggage, Pet, Jewellery, Beauty, Watches and others, with higher reductions in categories like Home, Apparel and Kitchen.