Early Festival for Amazon Sellers as Fees and Storage Charges Cut
Ecommerce giant has also slashed the rates of its ‘Go Local’ programme by at least 20%
Bengaluru: Online retailer Amazon India has slashed seller fees in five categories and reduced storage charges to encourage vendors to stock more products ahead of the festive season sales in October. Amazon has lowered the commission sellers have to pay it by up to 2% in categories such as apparel, home and electronic accessories, which the company has found to be popular during the festive season.
The ecommerce giant has also reduced the closing fee for sellers who use its fulfillment centres to store products. Additionally, to enable more sellers to place their inventory closer to their customers, Amazon India has slashed the rates of its ‘Go Local’ programme by at least 20%.
These changes, among several others, are aimed at helping sellers store their inventory closer to the customer, which translates into faster deliveries. Moreover, the drop in the seller fees in categories such as apparel means vendors can stock more products and offer a wider selection.
“These fee changes should reduce the cost of operation for the sellers so that they can offer a wide range of
products at competitive prices to the customers,” Gopal Pillai, general manager of seller services at Amazon India, told ET. “Across the board, we are looking at everything from the seller’s perspective and passing on our benefits of scale and leverage to the seller.”
With currently over 3,80,000 sellers on its marketplace offering more than 170 million products, Amazon India is witnessing an addition of 3,000 sellers every week as the company inches closer to its flagship sale next month.
But even as the ecommerce giant tries to incentivise merchants, a group of online sellers is in the process of filing a case against Amazon India alleging ‘preferential treatment’ towards some larger sellers such as Cloudtail and Appario.
The suit, by the All India Online Vendors Association (AIOVA) that represents over 3,500 vendors, will also seek a restriction against such large sellers from partaking in the festive season sale, ET has learnt from a member of the association.
AIOVA recently approached the Competition Commission of India (CCI) requesting it to restrict large sellers such as Retail Net and Omnitech Retail on Flipkart from participating in the Indian online marketplace’s upcoming festive sales, as reported by ET.
Both Amazon India and Flipkart have tweaked seller commissions multiple times this year.
Amazon India in June lowered its seller fees in categories such as furniture and luggage. In April, Amazon changed its seller fee structure to making it cheaper for vendors to ship locally.
Flipkart slashed seller commissions in lower-priced products in August. Prior to that, in April, it lowered commissions in the books and apparel categories.