National Views News: Amazon India has increased its fees for sellers effective from May 31. The referral fees charged to sellers have been increased in various categories including groceries, beauty products, medicines, apparel, and pet products. The platform’s fees for handling product returns will also see a substantial increase. Now, according to experts, this Amazon India seller fee hike could result in higher prices for products on the platform, as sellers are expected to pass on the added cost to customers.
A company spokesperson stated that the fee revision was based on various factors, such as changes in market dynamics and macroeconomic conditions, and included the introduction of new fee categories and the reduction of fees in some categories.
What is Seller Fee and What is the Amazon India Seller Fee Hike in Each Vertical?
Amazon charge seller a certain commission for selling products on their platform. This is Amazon Seller Fee. The increase in these fees is part of the platform’s effort to generate revenue channels and save money, similar to other technology companies, amidst a global economic downturn.
In the beauty products vertical, categories like haircare, bath, and shower, the commission fee will see an increase to 8.5% for products priced below Rs 300. Previously, the platform charged a 7% fee for items up to Rs 500.
In the apparel category, both for women and men, seller fees have also been raised. Previously set at 19% for products priced above Rs 1,000, the fees have now been increased to 22.5% in certain cases.
While platform fees for grocery items, including herbs and spices, have been reduced for smaller purchases—reflecting a 2.5% decrease for items under Rs 500 compared to the previous 4.5% fee—there has been an increase in fees for larger purchases. Currently, items valued over Rs 1,000 incur an 8% fee, which will be raised to 9%.
Besides, refund charges imposed on sellers for customer returns will undergo an increase of up to 40% in certain instances. Now this could burden the buyers of Amazon and reduce the amount of discounts the buyers normally got on the e-commerce platform.
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