Amazon India reduces seller commission across apparel categories

26 August 2024, Mumbai

Starting Sep 9, Amazon India has reduced seller commissions across several categories in anticipation of the upcoming festive season.

The company has lowered commissions across 59 sub-categories by 3-12 per cent, with a particular focus on products with low average selling prices (ASP), as per Amit Nanda, Director-Selling Partner Services, Amazon India.

Earlier in March, Amazon had increased commissions by 10 per cent-30 per cent across major segments, transitioning several categories like car electronics, keyboards, mouses, and personal care appliances from a flat fee to a tiered commission system based on ASP.

This time, it has reduced seller commissions across categories such as apparel, home furnishings, fashion, and sports, which often feature low ASP products.

For example, in the apparel category, the commission for ethnic wear has been reduced to 4.0 per cent-17.5 per cent depending on the ASP, down from the previous 7.5 per cent-17.5 per cent. The commission on men’s t-shirts has been lowered to 5.0 per cent-21.0 per cent from the earlier 13.5 per cent-21.0 per cent, while the commission on sweatshirts and jackets has been reduced to 8.0 per cent-12.0 per cent from 8.0 per cent-24.0 per cent.

Similarly, the commission on sarees and dress materials has been reduced to 8.0 per cent-23.0 per cent, compared to the previous 14.0 per cent-23.0 per cent.

This reduction will encourage sellers recognise the different economies they will be operating under this time, says Nanda. According to him, these lower fees might see greater adoption in Tier II and III towns, though there is also significant growth potential for their adoption in metro areas.

In April, Amazon launched a new vertical called Bazaar, aimed at selling low-priced, unbranded items, competing with platforms like Meesho and Flipkart-backed Shopsy. Bazaar will have a distinct commission structure, according to Nanda.

Beyond apparel, the new commission for cushion covers has been reduced to 3.0 per cent-10.0 per cent from the previous 8.0 per cent-10.0 per cent. The commission on home furnishings, excluding curtains has been lowered to 2.0 per cent-11.0 per cent, compared to a flat 11.0 per cent previously.

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