Online retail behemoth Amazon has made a significant announcement that will come as a relief to small sellers on its platform. From April 7, the firm will remove the referral fee for 1.2 crore items that cost less than ₹300 in 135 categories.
Less Commission and Reduced Shipping Charges
Amazon used to charge a commission ranging from 2% to 16% depending on the product category. Under the new policy:
- Zero commission on qualified low-cost items.
- Lower weight handling and shipping fees:
- Easy Ship and Seller Flex shipping rates decreased from ₹77 to ₹65.
- Weight handling charge decreased to ₹17 per kg.
- Sellers save 90% of fees for extra items in multi-item shipments.
Further Savings for Sellers
Amazon explained that the new policy would enable sellers to provide improved deals, like "Buy 2, Get 10% Off", making their products more competitive.
Amazon's Focus on Small Sellers
Amazon India Director Amit Nanda reiterated that the shifts are designed to improve affordability and raise sales for small businesses. In September 2024, Amazon had further cut seller charges on 59 product categories by 3% to 12%.
With these shifts, Amazon keeps building a seller-centric marketplace, supporting businesses to succeed with less cost and greater profit margins.
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