- Big businesses that rely heavily on marketplaces like Amazon for sales, such as Mamaearth and boAt, will be impacted by the hike in seller fees.
- Beginning on April 7, Amazon has announced changes to its seller fees for a number of categories and goods. This implies that the cost of a number of products sold on the internet platform would go up, according to Moneycontrol.
- Each time a product is bought on Amazon, the seller pays a fee to the corporation that covers costs related to technology, shipping, returns, and inventory storage.
- An Amazon notification states that changes have been made to the long-term storage and refund fees, as well as adjustments to a number of product categories. The 18% goods and services tax (GST) is not included in the charge increases.
The Moneycontrol report states that the seller charge for home renovation products increased from 9% to 13.5%. A tiered system with a maximum 10% selling fee has replaced the previous 5% seller fee for luxury beauty items.- The seller charge for products in the sleepwear category has increased from 11.5–19% to 13.5–19%. Conversely, seller fees increased for product categories such musical instruments (7.5 percent to 10.5) and flip flops (10-12.5 percent to 13-15 percent).
Amazon did, however, reduce seller fees for other items, inverters, and batteries (5–5.5% to 4.5%), as well as baby clothes (11–21% to 11–20%). The website was informed by an Amazon representative that the revised fees considered many aspects such as inflation, interest rates, and operating costs.
According to an Amazon spokesman, the company is committed to digitalizing small and medium-sized businesses in the nation and views seller fees and incentives as long-term levers that will assist maintain a vibrant, thriving marketplace.- The company’s “commitment to make Amazon (India) one of the most preferred marketplaces for selling in India and creating right choices for sellers to grow efficiently” is reflected in the modifications to seller fees, according to Amazon.
- The report states that major brands such as Mamaearth, boAt, and others who receive a significant portion of their sales from online marketplaces, like as Amazon, will be impacted by the increase in seller fees.