Amazon India reduces seller fees to increase vendors on platform

Amazon India has reduced its commission charges by up to 35 percent for fashion sellers and up to 50 percent for other fast moving consumer goods sellers to promote them on the e-commerce platform.

Amazon India is promoting smaller sellers on its platform - J.Macdougall/AFP

In order to appear more inclusive of independent sellers following the recent foreign direct investment regulations, Amazon India has reduced its seller fees. “We introduce limited-period fee promotions regularly for our sellers to motivate them to grow their business on the marketplace,” an Amazon India spokesperson said in an e-mail to the Economic Times. 

For fashion sellers, Amazon India has introduced a ranking for independent vendors and the best performers will see commission cut by 35 percent. The incentive is designed to promote competition amongst fashion sellers.

As the new FDI norms focus on creating a level playing field in the e-commerce market, Amazon India’s move appears to be in line with this. Amazon India, along with its main competitor and fellow US-owned business Flipkart, had faced heavy criticism for flouting the FDI norms by controlling its inventory. Online platforms are no longer allowed to sell brands in which they have a stake which meant that private fashion brands had to be re-structured and profit margins reduced. Amazon India is promoting smaller sellers to make up for this loss. 


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