Ahead of festive season, Amazon drastically cuts selling fee

Amazon India has announced a reduction of up to 12 percent in selling fees in multiple product categories in its marketplace prior to the festive season.

The reduction will take effect from September 9. This will help sellers to widen their product portfolio on the platform apart from boosting growth, a PTI report quoting Amazon India.

Relief for sellers of low-cost products

"The sellers on Amazon India will benefit from a drop in selling fees, ranging from 3-12 percent across various product categories", Amazon noted. The new changes in the rate card will mainly benefit products priced below ₹500, it added.

“ 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 report said quoting Amit Nanda of Amazon India.

The changes would be effective beyond the festive season too. “While the timing of the fee cuts aligns with the festive season, Amazon underscores that these changes are not temporary measures. The fee decrease will give sellers an opportunity to optimize their operations in time for the Diwali shopping rush and set the stage for sustained success well beyond the festivities,” the report said.

“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,” the report quoted Mr Nanda.

`No role in setting prices'

Amazon also said that as a marketplace it did not have a role in setting of prices and bringing changes in the prices. Prices depended on the seller. However, the latest reduction in selling fees will enable growth and would further expand the product portfolio.

                                                     (By arrangement with livemint.com)