Specializing in e-commerce Amazon Indiawhich competes with Walmart, a company owned by Walmart. Flipkarthas announced a significant reduction in sales fees for 59 product subcategories on its platform.
The reduction, which will come into effect from September 9, 2024, ranges between 3% and 12% and is expected to benefit a wide range of sellers, especially those offering products priced below Rs 500.
The move is seen as a strategic initiative to support retailers as they prepare for the upcoming festive season.
Impact on small and medium-sized enterprises
The reduction in selling fees is specifically aimed at supporting small and medium-sized businesses (SMEs) on Amazon.in.
Amit Nanda, Director, Seller Partner Services, Amazon India, said, “At Amazon, we strive to support businesses of all sizes, from small and medium-sized enterprises to startups and established brands. The fee reduction is a direct response to feedback from our sellers, especially small businesses.”
The new tariff structure will allow these companies to optimize their operations, expand their product offering and increase their presence on the platform.
Details of the tariff reduction
The revised fee structure includes significant cuts across several product categories. For example, a seller offering a printed T-shirt at a price of Rs 299 will now pay a reduced referral fee of just 2%, compared to the previous 13.5%, translating to a saving of Rs 34 per unit.
Similar reductions apply to other segments, including home furnishings, interior lighting, kitchen products and more.
Additionally, the weight handling fee for Amazon Fulfillment Programs has been revised based on sellers’ STEP levels, further reducing costs for participating businesses.
Aiming for long-term growth
While the fee cuts come just ahead of the holiday season, Amazon has clarified that these are not temporary measures. The company intends for these changes to provide long-term benefits for sellers on the platform.
“Sellers, particularly those selling affordable products, will experience a significant reduction in fees on Amazon. This will give them the opportunity to reinvest in their business to accelerate their growth. We are confident that these changes will drive unprecedented results for our sellers during the upcoming festive season and beyond,” said Nanda.
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