Amazon India reduces selling fee in 59 product sub-categories ahead of festive season

Ecommerce major Amazon India, which competes with Walmart-owned Flipkart, has announced a significant reduction in selling fees for 59 product sub-categories on its platform. 

The reduction, effective September 9, 2024, ranges from 3% to 12%, and it is expected to benefit a wide range of sellers, especially those offering products priced below Rs 500.

The move is seen as a strategic initiative to support sellers as they gear up for the upcoming festive season.

Impact on small and medium businesses

The reduction in selling fees is particularly aimed at supporting small and medium businesses (SMBs) on Amazon.in.

Amit Nanda, Director of Selling Partner Services at Amazon India, said, “At Amazon, we are invested in supporting businesses of all sizes, from small and medium businesses to emerging entrepreneurs to established brands. The fee reduction is directly in response to feedback from our sellers, especially small businesses.”

The new rate structure will allow these businesses to optimize their operations, expand their product offerings, and grow their presence on the platform.

Details of the fee reduction

The revised fee structure includes significant cuts across various product categories. For example, a seller offering a printed T-shirt priced at Rs 299 will now pay a reduced referral fee of just 2%, down from the previous 13.5%, resulting in a savings of Rs 34 per unit.

Similar reductions apply to other segments, including home furnishings, indoor lighting, kitchen products, and more.

Additionally, the weight handling fee for Amazon fulfilment programs has been revised based on sellers’ STEP levels, further reducing costs for participating businesses.

Aiming for long-term growth

While the fee cuts come just before the festive season, Amazon has clarified that these are not temporary measures. The company intends these changes to provide long-term benefits for sellers on the platform.

“Sellers, particularly those selling 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. We’re confident these changes will lead to unprecedented results for our sellers during the upcoming festive season and beyond," Nanda said.