Short Summary:
Amazon India is reducing selling fees by 3-12% for 59 product sub-categories starting September 9, 2024, to support sellers ahead of the festive season. The fee cut will particularly benefit sellers of affordable products and help them expand their portfolios. While the timing aligns with Diwali, Amazon emphasizes that these reductions are permanent, aimed at fostering long-term growth for sellers.
Amazon India has unveiled a strategic reduction in selling fees across 59 product sub-categories, with cuts ranging from 3% to 12%. This adjustment, effective from September 9, 2024, is designed to strengthen the partnership between Amazon and its sellers, providing a significant boost as the festive season approaches.
Seller Fee Changes in Numbers
The new fee structure will offer substantial benefits to sellers dealing with affordable products, particularly those priced below ₹500. For instance, a seller of printed T-shirts priced at ₹299 will see a reduced referral fee of only 2%, down from the previous 13.5%. This reduction translates to a savings of ₹34 per unit, which can be crucial for budget-conscious sellers.
The fee reductions are extensive, covering various product segments:
- Home Furnishing: Reduced by 9%
- Indoor Lighting: Reduced by 8%
- Home Products: Reduced by 8%
Additionally, referral fees for low-priced items in categories such as apparel, kitchen, wireless accessories, office products, sports, shoes, luggage, pet, jewelry, beauty, and watches will also be lowered. The revisions also extend to weight handling fees for fulfillment centers and Amazon fulfillment programs, such as Seller Flex and Easy Ship, based on sellers’ applicable STEP* levels.
Small and Medium Businesses on Amazon.in to Benefit
This fee reduction reflects Amazon’s commitment to supporting businesses of all sizes, from small and medium enterprises to emerging entrepreneurs and established brands. Amit Nanda, Director of Selling Partner Services at Amazon India, stated, “The fee reduction is directly in response to feedback from our sellers, especially small businesses. With this, we’re taking a significant step towards creating a more seller-friendly ecosystem.”
Nanda emphasized that while the fee cuts coincide with the festive season, they are intended as permanent changes rather than temporary measures. This adjustment will enable sellers to optimize their operations ahead of the Diwali shopping rush and position themselves for sustained success beyond the festivities. “Sellers, particularly those dealing with affordable products, will experience a significant decrease in fees on Amazon. This will provide them with an opportunity to reinvest in their business for accelerated growth,” Nanda added.
Will the Selling Fee Revision Make Shopping Cheaper?
Amazon.in clarifies that as a marketplace, it does not control the pricing of products; any price changes are determined by the sellers. However, the fee reductions are expected to help sellers expand their product offerings and grow their businesses, potentially leading to more competitive pricing.
STEP Program
The STEP (Seller Tier Evaluation Program) is a performance-based reward program that evaluates sellers on key customer input metrics and classifies them into one of four levels—Basic, Standard, Advanced, and Premium. Each level provides various rewards and benefits, such as fee waivers, faster payment disbursement, and free account management. New sellers start at the Standard level and can advance based on their performance.
Overall, this fee revision represents Amazon’s ongoing efforts to enhance its platform’s seller ecosystem, supporting growth and innovation in the lead-up to and beyond the festive season.
