Paytm lowers seller commission

By

Maverick Martins

Published
Mar 16, 2017

Alibaba-backed Paytm E-Commerce is gearing up to take on bigger rivals Flipkart, Amazon and Snapdeal and has made its intentions clear by lowering the commission that sellers on its platform need to pay across some product categories, according to a report in the Economic Times.

The company recently launched Paytm Mall, inspired by Alibaba's shopping portal Tmall and set tough requirements for sellers seeking to get on board with the online marketplace.

The launch also marked Alibaba’s entry into India’s e-commerce framework wherein homegrown e-tailers are struggling to raise funds to compete with global rival Amazon.

"To help you get more out of selling with Paytm, we are lowering the base commissions for certain categories to 1.65%," the company said in an email to its sellers. “With a lower commission, you can now offer the most competitive prices to your customers and increase your chances of boosting sales,” it added.

The All India Vendors' Association, a group of 2,000 sellers, said this is positive change brought about by the company and with supportive regulatory environment. Now, sellers on the platform can draw the maximum benefits.

The change in commissions will be effective, March 17. The company will, however, introduce marketplace commission on shipping charges, depending on the category.