Amazon India reduces numerous seller fees to promote festive growth

Amazon India plans to reduce its seller fees in a number of categories from September 9. The e-commerce business aims to encourage its sellers to offer greater promotions this upcoming festive season.

“We also wanted to help our sellers in planning for their Diwali and other festive sales,” said Amazon India’s director of seller partner services Amit Nanda, ET Retail reported. “With this change, we’re hoping sellers will find it as cheap, if not cheaper, to sell some products on Amazon compared to their offline channels.”
 
The business has reduced its commission rate for 59 product sub-categories on its platform in the region of between 3% and 12%, the Economic Times reported. Amazon India had raised certain seller fees back in March this year in categories including personal care.
 
For its upcoming reductions, Amazon India will focus on categories including fashion jewellery, apparel, sports, and home furnishings. These are product categories which are often discounted as part of festive promotions.
 
“We feel that the drop in fees is dramatic enough to shake sellers up so they say that yes, this time we will be operating on very different economics,” said Nanda. The executive expects that the lower fees will have an especially significant effect on business in Tier 2 and 3 towns, where shoppers often prioritise value retail.