Amazon India’s upcoming fee changes could lead to higher prices on select items

New Delhi, March 23 (IANS) – Amazon India is set to revise its seller fee structure from April 7, which may lead to higher prices for certain products. The last fee revision took place in May 2023, and the new structure excludes the 18 per cent GST that will be levied on the seller fee.

According to reports, sellers on the e-commerce platform will now have to pay a higher fee for selling products. For instance, the seller fee for luxury beauty products has been increased from 5 per cent to a tiered system that goes up to 10 per cent. Similarly, the seller fee for sleepwear category will see a hike from 11-15 per cent to 13.5-19 per cent, while home improvement category fee will increase from 9 per cent to 13.5 per cent.

While some categories will witness a fee hike, others like baby apparel products, inverter, and batteries will see a decrease in fees. Companies like Mamaearth, which do bulk selling on Amazon, are likely to be impacted by this revised fee structure.

Amazon India has not provided any immediate comment on the matter. The consumers shopping on the platform may have to bear the brunt of these changes with potentially higher prices for various products. The revision in seller fee structure is expected to bring about a significant impact on the online shopping experience for Indian consumers.

The latest move by Amazon India to revise its seller fee structure highlights the ongoing challenges faced by e-commerce platforms in ensuring a balance between profitability and competitive pricing. It remains to be seen how sellers and consumers will respond to these changes in the coming days.