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Amazon India waives seller referral fee for items below Rs 1,000 until December 31
After Flipkart, Amazon India has removed the referral fee charged to its sellers for items priced below Rs 1,000 until December 31, people familiar with the matter told ET.
Referral fee is a commission Amazon charges its sellers for each item sold on the platform. It depends on the product category and ranges from 2% to 16.5% of the order value.
“After Flipkart, Amazon waived the referral fee for items below Rs 1,000 until November 30; now that has been extended till December 31,” said a person aware of the matter. “However, the waiver is not applicable to all items.”
This development comes two weeks after Walmart-backed Flipkart introduced a zero-commission model for products priced below Rs 1,000. Flipkart has also expanded its zero-commission model to all products on its hyper-value platform Shopsy, irrespective of the price.
Another person aware of the matter said the referral fee waiver is likely to be extended after December 31, depending on the response from both sellers and customers.
Amazon did not respond to ET's queries.
In April this year, Amazon India eliminated the referral fee on more than 12 million products priced below Rs 300 to support small businesses. This was its largest seller fee reduction at the time.
The commission waiver is aimed at onboarding small sellers, as ecommerce platforms launch new verticals for low-ticket items while expanding into tier-III and tier-IV markets.
IPO-bound Meesho was the first to launch the zero-commission model for sellers in 2022, to take micro, small and medium enterprises online. Meesho particularly focuses on customers in tier-II markets and beyond.
“Meesho is reporting more volume growth than other ecommerce players, which are now targeting non-metros by expanding their product offerings, seller base and warehouses,” said Satish Meena, founder of ecommerce consultancy Datum Intelligence.
To cater to non-metros, Amazon India launched Bazaar in April 2024, which focuses on items below Rs 599 across segments like home, decor, utility and fashion, and doesn't charge any commissions.
“Since launch, Amazon Bazaar's seller base has grown sixfold and the customer base has grown eight times,” said Sameer Lalwani, product and business head of Amazon Bazaar. “We are going to have a large, pan-India marketing push to spread the Bazaar message.”
According to Lalwani, about 65-70% of the customers on Bazaar are from non-metros.
Earlier this month, Amazon launched a separate app for Amazon Bazaar in 14 new destinations in Asian, African and Latin American markets.
Source: EconomicTimes
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