Amazon India said it will reduce selling fees by up to 12 per cent across multiple categories in the run up to the festive season.
However, the company clarified that the move is not temporary and that it will allow sellers to bolster their operations in time ahead of Diwali and other festivals.
The fee cut will become effective from September 9 and is expected to allow sellers to expand their product portfolio on Amazon as well as boost growth, e-commerce giant stated.
"With the changes, sellers on Amazon India will benefit from a drop in selling fees, ranging from 3-12 per cent, across various product categories", Amazon India said.
The updated fee structure will particularly benefit sellers offering products priced below Rs 500, it said.
"At Amazon, we are invested in supporting businesses of all sizes, from small and medium businesses to emerging entrepreneurs to established brands,” said Amit Nanda, Director Selling Partner Services at Amazon India, adding that the fee cut comes in response to feedback from small business sellers in particular.
"Sellers, particularly those selling affordable products, will experience a significant decrease in fees on Amazon,” he added, pointing out that the move will help them reinvest in their business.
Amazon on April 7 had applied 18 per cent GST to all the fee types listed. "These revisions take into consideration various macroeconomic factors such as inflation, interest rates, operational costs etc, and align with industry-prevalent fee patterns," the company said back then.
From October 1, 2023, Amazon had started charging members of Amazon's Seller Fulfilled Prime programme a 2 per cent fee on every product sold. The programme allows third-party merchant to sell products with the Prime badge.
