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Amazon India reduces costs like referral fees, shipping for sellers

Amazon India has lowered referral fees and other charges for sellers on multiple categories such as furniture, luggage, and fashion. The referral fee is essentially a percentage of the seller’s total item price that Amazon collects. The development was first reported by The Economic Times.

Amazon India’s spokesperson in a statement shared with MediaNama said that, in the recent fee change,

Amazon have reduced referral fee across 22 categories, have lowered fee across various components such as weight handling, pick and pack fee for oversized items to provide sellers the flexibility to reduce their costs of doing business on Amazon and serve the customers better. Our constant endeavor is to ensure that our rate card is optimum from a seller’s cost of doing business perspective. Seller success is and will continue to remain an important focus area for us.

Amazon has decreased referral fee to 7% from 9% on office products, 10% from 13% on pet accessories, 6% from 8% on baby products etc. According to ET’s report,  in fashion category it has reduced the fee to 15% from 20%, 12% from 14% in furniture; 5.5% from 7% in luggage, and a reduction to 8.5% from 16.5% for eye-wear category.

Overall, effective from July 1, Amazon India is also reducing fulfillment fee, weight handling fee, pick & pack fee for oversize items, reducing shipping costs, etc.

Edge over Flipkart

This move might help Amazon to gain an extra edge over Flipkart, which was recently bought by Walmart. The Flipkart–Walmart deal has anyway left merchants worried about their businesses. The All India Online Vendors Association (AIOVA) reached out to the Competition Commission of India (CCI) about the acquisition, saying that the US giant will dominate the market on Flipkart.com via B2B company, which will affect other sellers on the Flipkart and may also lead to shutdown of their businesses. Before AIOVA, traders body Confederation of Indian Traders (CAIT) had filed a petition with the Competition Commission of India (CCI) as an objection against the $16 billion Walmart-Flipkart deal. CAIT represents 7 crore traders across India.

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