Indian e-commerce market is getting hot as the festive season is coming; the competition between two well-known companies – Flipkart and Amazon is growing. Due to competition between the two giants, Amazon India has once again changed its policy and reduced seller’s fees in categories like furniture, luggage and more.
Flipkart’s focus is also increasing on both of these segments.
Both companies have adopted an aggressive approach in these categories and demanding lower prices from sellers. The policy for sellers will be effective from July 15. Earlier in April, Amazon India had reduced seller’s fees.
The new fee structure for many categories
Amazon India has reduced referral fees for many fashions products. For apparel and accessories, it has been reduced from 20% to 15%. At the same time, fees for other categories such as furniture have been reduced from 14% to 12%. Apart from this fee structure, the fees for luggage have also been reduced from 7% to 5.5% and for eyeglasses from 16.5% to 8.5%.
Reduced fees in categories
Amazon’s spokesperson said that in the recently changed fee structure, we have reduced referral fees for 22 categories. It has reduced the fees for various items such as weight handling, pick up for oversize items and park fees so that the business costs of business sellers on Amazon can be reduced.
Sales fees were also reduced in April
Earlier, Amazon India had also changed the Sellers’ fees in April. Under this, the company had reduced sales tax to 70 % in items like grocery, daily similar needs, and apparel categories. However, the company has increased the fees for some items such as power bank, chargers, backpacks and shoes by 50 percent.
Focusing on small sellers from rural areas
In the last couple of days, Sellers have said Amazon is an expensive marketplace to conduct business. Over the past year, the company has started charging fees according to the distance under its Go Local program. But under the new policy, Amazon reduced referral fees in more than 30 categories. Many new sellers on Amazon are from small towns and semi-urban areas. Therefore, the company has redesigned their Seller Fee Structure.
The company has created three shipping modules for sellers.
Amazon has offered three shipping modules for sellers. In local option, a vendor can now sell local products in Sellers City. Whereas in the regional category and national category, the products can be sold across the country in addition to cities or states they already fixed. With this step, the sellers can focus on their local market so that the delivery of products can be made cheaper and faster.
Big Basket and Flipkart Collision.
For the grocery category, the Seller’s fees have been reduced from 7% to 3%. The company has taken this step to compete with Big Basket and Flipkart. At the same time, to combat Flipkart in the fashion category, the seller has reduced the seller’s fees from 19.5% to 17%.
Though the tough competition between these giants is growing each one of them is trying to attract consumers as well as they want a low price from the sellers to that means the consumers will be at an advantage. It’s a big opportunity for everyone and everyone is looking forward to experience the best of the deals. And from the e-commerce company’s point of view, each of them is trying to get the maximum market share in the e-commerce arena.