Starting May 31, Amazon India is set to raise seller fees in various key categories such as apparels, beauty, groceries, and medicines. Industry experts predict that this fee hike may lead to higher product costs on the platform, as sellers are likely to pass on the increase to customers. Additionally, the platform’s fees for handling product returns will see a significant increase.
According to a company spokesperson, the revision in seller fees is influenced by factors like market dynamics and macroeconomic conditions. While some fee reductions have been made in certain categories, new fee categories and increased fees have been introduced as part of the recent revision.
The decision to raise seller fees aligns with Amazon’s efforts, along with other tech companies, to conserve cash and explore new revenue streams amid a global economic slowdown. Notably, Amazon has laid off a total of 27,000 employees since last year.
In the beauty products segment, the commission for items under INR 300 will be increased to 8.5%, up from the previous 7% fee for items under or equal to INR 500. Similarly, seller fees in the apparels category for both women and men will be raised from 19% for products over INR 1,000 to 22.5% in certain cases.
While smaller ticket grocery purchases, including herbs and spices, will see a 2.5% fee reduction for items under INR 500 compared to the previous 4.5% fee, larger baskets will face an increase. Presently, items valued above INR 1,000 attract an 8% fee, which will be raised to 9%.
Amazon India has not provided immediate clarification on the reasons behind the fee hike. As the changes take effect, sellers and customers will closely observe the impact on product pricing and the overall e-commerce ecosystem.
