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Amazon India to give damage allowance to certain sellers

Amazon India will give vendors an allowance to cover damages that could occur during transit. Currently, the allowance will be given for products in apparel, shoes, watches and luggage category and will be applicable to vendors selling via Seller Flex. Until now, sellers had to file claims for the products getting damaged in transit, as indicated by the Economic Times

“We have introduced damage allowance in Seller Flex for certain categories as part of our endeavour to continue providing a good seller experience on this channel,” an Amazon India spokesperson told MediaNama. 

The Seller Flex programme is designed for faster replenishment and shipping. Through this, Amazon executives will determine if a seller’s warehouse can perform the same functions as fulfillment by Amazon (FBA). Executives will stock the products and upon receipt of an order, pack it, deliver it and also manage returns. The programme was started in 2015 with 11 vendors in six states.

Noted that last week, the company said it would double its storage capacity by setting up seven new fulfilment centres (FC). Amazon’s FCs will cover a total area of close to 4 million square feet and offer a storage capacity of over 13 million cubic feet. The new fulfilment centres will be set up in Telangana, Haryana, Maharashtra, Madhya Pradesh, Uttar Pradesh and Andhra Pradesh to support its regular business.

Revision in commissions

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In April this year, Amazon increased commissions for various categories, as reported by the Economic Times.  In the mobile phone category, the commission had gone up to 5 % from 3.5%. In the sleepwear under the apparels category, the commission was increased to 19.5% from 13%;  in the pet foods category, the commission was raised to 12% from 7%. The maximum spike had happened in headsets, headphones, earphones, keyboards, mouses, cables and chargers with an increase of 6-9 percentage points. In these categories, vendors compete with the company’s private label Amazon Basics.

Currently, Amazon charges 3% as referral fee, fixed closing fee of Rs 10 per unit, shipping fee starting at Rs 30 per item shipped and delivery service fee of 1.25% (this is the minimum cost, all cost vary depending on category, price band, volume and distance).

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