Amazon India cuts small merchant commission by 50%, Retail News, ET Retail


BENGALURU: Amazon has slashed its marketplace fees by 50% till June for merchants who sold goods worth Rs 10,000 or less before the virus outbreak in India. The Seattle-based online retail major will also give merchants an additional incentive of Rs 35 per unit of essential items like hand santisers and masks they sell through Amazon’s fulfillment service.

This would scale up the availability of essentials further on Amazon, which like other e-commerce platforms, is seeing a spike in grocery orders, for which also incentives have been introduced.

According to a person aware of the matter, Amazon is said to be doubling the number of items being sold under essentials segment every week since the lockdown began and the delivery timeline is now down to 3 days for service like Pantry, now scaled up to 16 cities, while AmazonFresh is delivering in two hours in select pin codes in four metros. Amazon has about 6,00,000 sellers on its platform in India.

“Tens of thousands of small sellers would benefit from the 50% fee waiver. It’s going to take some time for our merchants to get back to normal, so we are making it valid till the end of June as they come back online,” said Gopal Pillai, head of seller services, Amazon India. The company on average charges about 15% commission but it varies across categories.

As TOI reported on April 16, Amazon India has already sought clarification from the government on selling non-essentials items following the new lockdown guidelines from home ministry. Meanwhile, it has alerted sellers to prepare to restart selling from next week.

Pillai added Amazon has waived off several other fees like storage fees, referral and fulfillment fee along with relaxing timelines for claims and reimbursements. Thousands of sellers have seen their orders of non-essentials getting cancelled after the lockdown was announced and many of the products are stuck across various parts of India.

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