E-commerce major Amazon India, which competes with Walmart-owned Flipkart, has announced a significant reduction in sales fees for 59 product sub-categories on its platform. Effective September 9, 2024, the reduction will range from 3% to 12% and is expected to benefit a wide range of sellers, especially those offering products priced below Rs 500. The move is seen as a strategic initiative to support sellers as they prepare for the upcoming festive season.

The sale fee reduction is aimed at supporting small and medium businesses (SMB) on Amazon.in. “At Amazon, we invest in supporting businesses of all sizes, from small and medium-sized businesses to emerging entrepreneurs to established brands. "The fee reduction is a direct response to feedback from our sellers, especially small businesses," says Amit Nanda, Director, Selling Partner Services, Amazon India. The new rate structure will allow these businesses to optimize their operations, expand their product offerings and increase their presence on the platform.

The revised fee structure includes significant cuts across various product categories. For example, a seller offering a printed t-shirt priced at Rs 299 will now pay a referral fee of just 2%, down from 13.5% earlier, resulting in a savings of Rs 34 per unit. Similar reductions apply to other segments including home appliances, indoor lighting, kitchen products and more.

Amazon has clarified that the fee cut is not a temporary measure just ahead of the festive season. The company intends these changes to provide long-term benefits to sellers on the platform.

“Sellers, especially those selling affordable products, will experience a significant reduction in fees on Amazon. This will give them an opportunity to reinvest in their business for accelerated growth. We are confident that these changes will lead to unprecedented results for our sellers in the upcoming festive season and beyond,” said Nanda.