Amazon India has increased the fee it charges sellers for providing logistics services by at least 5%, according to a note reviewed by ET.
The fee is based on the distance and weight of the shipped goods.
The changes in fee structure, which also include an increase in the marketplace fee for some categories, will be effective from September 1, Amazon India told merchants on its platform.
The increase in the ‘weight handling fee’ is largely on account of the recent hike in fuel prices, which has led to higher delivery costs for each order, sellers aware of the matter said.
Prices of petrol and diesel across the country have climbed over the past few weeks and the fee increase will compensate for this. Over the last two days, prices of petrol and diesel have come down by 15-20 paise though it is relatively higher than last year.
Amazon India, for instance, charges Rs 58 for national transit of a 500-gm package from a premium seller.
Sellers are ranked as premium/advanced, standard or basic via a performance-based programme of Amazon, called Step.
The same for regional transit would be Rs 36.50.
From September 1, these charges would be Rs 60 and Rs 38.50, respectively.
The fee change will differ for sellers based on the category they fall under.
Amazon India has also increased marketplace fee or referral fee for categories like earphones, headsets and headphones, toys, beauty products and others. For some other categories, the fee remains the same.
Amazon India told merchants that it had revised the referral fee across 82 categories and has also made changes in a fee component called ‘closing fees’.
A spokesperson of Amazon India said the changes were part of its annual process.
“Seller fee revision is based on various factors including market dynamics, costs, seller feedback and overall customer experience and selection – ensuring sellers continue to choose Amazon as the marketplace to reach out to customers,” the spokesperson said. “As part of our recent revision, we have re-structured our fee rate card to have price band-based fees in select categories.”
Amazon has reduced the closing fee charges for products in the lower price range of Rs 250 and below, shipped from its fulfilment centres. Some of these fee changes are intended to encourage sellers to explore its Fulfilled By Amazon (FBA) program that will help them simplify their selling process and scale up their businesses, the spokesperson added.
Ecommerce platforms change seller fees at regular intervals.
During the second wave of the Covid-19 pandemic, Amazon had waived certain fees for sellers based on the overall sales threshold.
Source : Economic Times
