Amazon slashes selling fees up to 12% days after Piyush Goyal’s critique

Days after Union Minister of Commerce and Industries Piyush Goyal slammed Amazon by raising questions on predatory pricing, the e-commerce giant announced reduction in its selling fees across multiple product categories on the marketplace, effective September 9. 

As per the new rate, there will be drop in selling fees ranging from 3 percent to 12 percent across various product categories. The new rate card, according to Amazon, will particularly benefit sellers offering affordable products priced below Rs. 500. For instance, a seller offering printed t-shirts at Rs 299 will now pay a reduced referral fee of only 2 percent, a substantial drop from the previous fee of 13.5 percent. This results in savings of Rs 34 per unit for the seller. 

These fee reductions apply across a wide range of product segments, such as home furnishing (9 percent), indoor lighting (8 percent), home products (8 percent) and more. 

Amazon said in a statement that the revised rate will provide a “boost to sellers as they prepare for the upcoming festive season.” According to the company, this move is aimed at deepening its partnership with sellers of all sizes, which in turn will enable sellers to expand their product portfolio on Amazon.in and grow their business. 

However, the company clarified that though this comes ahead of the festive season, it is not a temporary measure. The fee decrease will give sellers an opportunity to optimise their operations in time for the Diwali shopping rush and set the stage for sustained success well beyond the festivities.  

The overall reduction will impact seller fees in 59 sub-categories across different pricing bands. In addition, Amazon stated that the referral fees will be reduced in low-priced selection across a wide range of product categories such as home, apparel, kitchen, home improvement, wireless accessories, office products, sports, shoes, luggage, pet, jewellery, beauty, watches and others, with higher reductions in categories like home, apparel and kitchen. 

The company further added that it has also revised weight handling fee for fulfillment centres, seller flex, and easy ship. 

Commenting on the move, Amit Nanda, Director, Selling Partner Services, Amazon India said, “At Amazon, we are invested in supporting businesses of all sizes, from small and medium businesses to emerging entrepreneurs to established brands. The fee reduction is directly in response to feedback from our sellers, especially small businesses. With this, we’re taking a significant step towards creating a more seller-friendly ecosystem.” 

This announcement comes days after Goyal questioned Amazon’s billion dollars investment plans in India claiming that such investments are not aimed to support to India’s economy, but to fill in the huge loss that the company incurred in a year.