Amazon India to revise seller fees from April 7

Amazon India has notified sellers that it will change its fee structures from April 7, with several categories set to attract higher fees depending on the price of the product.

In its latest notification to sellers, Amazon said it was revising a variety of fees around shipping, referrals, and tech costs. ET has seen a copy of the notification sent to the sellers.

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Such fees, charged from sellers for every item sold on the platform, are an important source of revenue for the ecommerce major. The e-tailer makes such resetting periodically, with the last update coming in May 2023. Sometimes, sellers tend to pass on the hit from such fee hikes to customers through higher product pricing.

A variety of categories like car electronics, camera accessories, keyboards and mouses, and personal care appliances went from a single flat price to a tiered price system. Categories such beauty products like moisturiser and sunscreen (range starting at 6.5% against 2.5% earlier), grocery and gourmet gifts (range starting at 9% vs at 6% earlier), doors and windows (a flat 10% vs a range starting at 5% earlier) and 3D printers (flat 10% now vs 7% earlier) were among the steepest hikes.

In a statement, Amazon India said seller fees and incentives were “strong long-term levers” that would help individual businesses and the marketplace. “These changes reflect our commitment to make one of the most preferred marketplaces for selling in India and creating right choices for sellers to grow efficiently,” the statement added.

A few categories also saw a slight decrease, like inverter and batteries (4.5% now against 5.5% earlier) and fragrances (range starting at 12.5% now against flat 14% earlier).

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Shipping prices were also revised by the firm. The range of prices for ‘easy ship’ and ‘self-ship’ services will now be between Rs 4 and Rs 80, against Rs 3 and Rs 70 earlier. The upper limit for ‘seller flex’ service has been pushed to Rs 61, from Rs 58 earlier. The technology fee per unit has inched up to Rs 14 from Rs 13 earlier.

The firm also removed the Zero Fee fulfilment policy and will now charge a weight handling and shipping fee for standard-sized shipments costing over Rs 20,000.

Amazon Seller Services, the entity that runs the Amazon marketplace and relies on revenue streams like seller fees, posted a 3.4% increase in revenue to Rs 22,198 crore in the financial year ended March 31, 2023, while its loss widened by about a third to Rs 4,854 crore.

On February 12, ET reported that Amazon infused Rs 830 crore into Amazon Seller Services as part of an overall Rs 1,000 crore investment into Indian entities so far this year.

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