From May 31, Amazon India will raise seller fees for a number of key categories such as apparel, beauty, groceries, and medicines. Experts opine that the hike will make products on the platform more expensive as sellers are likely to pass on the increase to customers. The platform's fees for handling product returns will also rise significantly.
Seller fee is the commission that Amazon charges from sellers for selling their products on its platform.
"Seller fee revisions are based on a variety of factors, including changes in market dynamics and various macro-economic factors. As part of our recent fee revision, we made changes to our fee rate card, including the addition of new fee categories and the reduction of fees in certain categories," said a company spokesperson.
The move comes as the platform, like other tech companies, seeks to conserve cash and expand revenue channels in the midst of a global slowdown.
The commission for products less than Rs 300 in the beauty products vertical, which includes segments like haircare, bath, and shower, will be raised to 8.5 per cent. Previously, a 7 per cent fee for items less than or equal to Rs 500 was charged by the platform.
Seller fees in the apparel category - for both men and women - have also been increased, from 19 per cent for products over Rs 1,000 to 22.50 per cent in some cases.
In some cases, the fees charged by sellers for issuing refunds to customers will also be increased by up to 40 per cent.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
