Starting from May 31, 2023, Amazon India is set to implement increased commissions across several product categories, including beauty, personal care, baby care, automotive products, grocery, and over-the-counter medicines. This hike will impact the platform’s pricing structure, given that Amazon earns revenue by charging sellers a percentage of the final sale price, including shipping fees, as commissions.
These revisions are routine adjustments based on market rates, with an additional 18% Goods and Services Tax (GST) charged separately. This rise in platform fees could lead to an upward trend in product prices, as sellers may adjust their pricing to compensate for the increased commissions.
Among the affected categories, over-the-counter medicines have seen the most significant hike. The commission has increased from 5.5% to 12% for items priced below Rs 500 and to 15% for items priced above Rs 500. For grooming and personal care appliances priced above Rs 1,000, the commission will be 9%. Sleepwear apparel, priced above Rs 500, will now have a 15% commission, up from the previous 13%.
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Contrarily, certain categories like apparel and appliances have experienced a reduction in commissions for items priced below Rs 500. However, the impact of this reduction is likely to be negligible, according to a seller on the platform who chose to remain anonymous.
Additionally, Amazon India has restructured its refund policy, dividing sellers into four tiers based on various factors, including customer feedback and returns. Simultaneously, the cost of long-term storage in Amazon-owned warehouses has increased to Rs 40 per unit from Rs 30 per unit.
In a statement on its website, Amazon India affirmed its commitment to enhancing the selling and customer experience on the platform.