Amazon India To Revise Seller Fees From 7 April

Amazon India has announced its decision to revise the seller fees across various categories and products, with the adjustments set to come into effect from 7 April 2024. These changes are anticipated to impact prices on numerous items available for purchase on the ecommerce platform.

Sellers operating on Amazon are subject to a range of charges encompassing inventory management, technological services, shipping, returns, and a standard seller fee, payable upon each sale facilitated through the platform.

The revised fee structure, as outlined in company notifications, is reported to include adjustments in several categories of items, alongside changes in long-term storage fees and refund charges. It may be noted that the fees mentioned do not include the 18 per cent Goods and Services Tax (GST) that will be levied on the seller fee.

Key highlights from the company statement indicate a hike in seller fees for various product categories. For instance, fees for products categorised under home improvement are slated to rise from 9 per cent to 13.5 per cent, while luxury beauty products will transition from a flat 5 per cent rate to a tiered system potentially reaching up to 10 per cent. Similarly, sleepwear items are expected to witness an increase from the existing 11-15 per cent range to 13.5-19 per cent.

Other notable adjustments include a raise in the seller fee for musical instruments from 7.5 per cent to 10.5 per cent, and for flip-flops from 10-12.5 per cent to 13-15 per cent. 

Conversely, certain categories are set to experience a reduction in seller fees. For instance, fees for inverters and batteries will decrease from 5-5.5 per cent to 4.5 per cent, while baby apparel will see a slight reduction from the current 11-21 per cent to a range of 11-20 per cent.

Amazon India's decision to revise seller fees comes amidst a competitive e-commerce landscape where platforms like Amazon, Flipkart, and Myntra derive revenue through commissions and fees from vendors. These charges are subject to periodic adjustments in response to market dynamics and strategic considerations.

Moreover, Amazon India is set to introduce changes in referral fees, closing fees, and weight handling fees starting 7 April. These adjustments are part of a bi-annual process, aimed at ensuring competitive rates that facilitate seller profitability. The revisions take into account various macroeconomic factors such as inflation, interest rates, and operational costs, aligning with prevalent industry fee patterns.

In a statement, an Amazon India spokesperson emphasised the importance of seller fees and incentives as crucial long-term levers for sustaining a robust marketplace. The revisions reflect Amazon's commitment to fostering the growth of small and medium businesses in India and making Amazon.in one of the most preferred marketplaces for sellers in the country.