Amazon Sellers Rejoice As Commissions Charged From Them Reduced By 50%!

The new ecommerce policy of India has wreaked havoc all over – Sales on Amazon, Flipkart are down and deep discount days are slowly vanishing.

But at the same time, online sellers are getting pampered and loved more, because in these testing times, ecommerce portals need their support.

As much as 50% commission has been cut for some sellers, for some niche categories.

Lower commissions charged from sellers will translate to more enthusiasm from them for online business, and this means good news for Indian ecommerce.

Amazon Will Take Upto 50% Less Commission!

As per reports coming in, Amazon India has decided to reduce as much as 50% commission for sellers. This is the commission charged from them, for selling products on their platform.

The reduction ranges from 20% to 50%, across various categories.

The biggest beneficiary has been the FMCG category, where sellers will now pay 50% less commission to Amazon. Sellers of personal care products, for example, will now pay 50% less commission, and hence, will be able to generate 50% more income.

Fashion and apparel sellers are witnessing upto 35% less commissions now.

Justifying this movve, Amazon spokesperson said, “We introduce limited-period fee promotions regularly for our sellers to motivate them to grow their business on the Amazon.in marketplace,”

Infact, to make the commissions appear more lucrative, and competitive, Amazon India has initiated a rating system for fashion sellers on their platform – The highest rated retailers will now pay 35% less commission, compared to few months ago when the new ecommerce wasn’t implemented.

This is indeed good news for sellers who are exclusively selling on Amazon India.

Cloudtail’s Disappearance Was A Reason?

Immediately after the new ecommerce policy kicked in, Amazon’s biggest seller: Cloudtail was removed from the platform as they violated the new rules.

FDI backed ecommerce portals cannot sell via their own sellers, and no single seller can capture more than 25% of the overall sales.

50% of Cloultail was owned by Amazon that time, hence, they had to stop selling.

It was this period when most of the smaller sellers started receiving more incentives and offers from Amazon India, and this has set a new benchmark.

Now, Cloudtail is back, with less than 25% stake of Amazon, and things are stabilizing gradually. But the increased incentives for smaller sellers are here to say.

One of the persons familiar with the development said, “Their (Amazon’s) marketplace team has become very active,”

Besides, both Amazon and Flipkart have launched extensive newspaper ads, convincing smaller sellers that the company stands behind them. 

It would be interesting to observe how Flipkart manages to keep its sellers happy now.

We will keep you updated, as more details come in.