Amazon's new seller policy may mean higher prices for online shoppers
Digbijay Mishra| TNN | Updated: Mar 19, 2018, 10.34AM IST
The development comes after multiple policy changes, which increased the cost of doing business for sellers... Read More
BENGALURU: Amazon is tweaking its seller policy, which will be effective from April 19. These changes will see a reduction in various fees that Amazon charges from sellers on its marketplace. The e-commerce major will also hike the fee it levies on sellers in select categories as competition with Flipkart heats up.
The development comes after multiple policy changes, which increased the cost of doing business for sellers who have been agitating against these moves. Last year, the company had also introduced a distance based fee under its programme GoLocal.
Amazon’s India head for seller services, Gopal Pillai, said the new changes will boost margins for those who are selling on its platform. According to the new policy, Amazon has decreased the referral fees in over 30 categories, which range from 10% to as high as 75%. In over 20 categories like shoes, pet food and backpacks, the e-tailer has increased the referral fee by up to 50%.
Amazon typically sends the policy changes to sellers in advance. But at the time of filing the story, third-party sellers had not received any communication. The changes in seller policies assumes significance as it can have an impact on the overall pricing of products sold online. In cases of higher overall commissions for e-commerce companies, third-party sellers typically increase the price of the product on the platform, passing hikes onto consumers.
“Essentially, sellers will see improvement in their margins. We have over 3 lakh sellers now on the platform and our policy is to ensure growth for everyone regardless of their size and scale,” said Pillai.
The development comes after multiple policy changes, which increased the cost of doing business for sellers who have been agitating against these moves. Last year, the company had also introduced a distance based fee under its programme GoLocal.
Amazon’s India head for seller services, Gopal Pillai, said the new changes will boost margins for those who are selling on its platform. According to the new policy, Amazon has decreased the referral fees in over 30 categories, which range from 10% to as high as 75%. In over 20 categories like shoes, pet food and backpacks, the e-tailer has increased the referral fee by up to 50%.
Amazon typically sends the policy changes to sellers in advance. But at the time of filing the story, third-party sellers had not received any communication. The changes in seller policies assumes significance as it can have an impact on the overall pricing of products sold online. In cases of higher overall commissions for e-commerce companies, third-party sellers typically increase the price of the product on the platform, passing hikes onto consumers.
“Essentially, sellers will see improvement in their margins. We have over 3 lakh sellers now on the platform and our policy is to ensure growth for everyone regardless of their size and scale,” said Pillai.
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