
Amazon India has announced adjustments to its seller fee structure, which will come into effect from April 7. These changes will impact various item categories, long-term storage fees, and refund fees. It's important to note that the revised fee structure does not include the 18% Goods and Services Tax (GST) applicable to the seller fee, potentially leading to increased prices for many items on the platform.
According to a report by Money control, certain categories such as home improvement, luxury beauty, and sleepwear will see significant increases in seller fees. Conversely, fees for categories like inverter and batteries, baby apparel, among others, will see reductions.
These adjustments will have implications for major companies like Mama earth and Boat, particularly in the skincare and beauty categories. For instance, fees for Mama earth's face washes, moisturizer creams, and sunscreens are expected to rise. Despite operating on a large scale, Mama earth is subject to the same fee increases as other sellers, as highlighted by its CEO, Varun Alga Additionally, Amazon is discontinuing its Zero Fee fulfilment policy, meaning a weight handling shipping fee will be applied to standard-sized shipments priced over INR 20,000 from April 30, 2024. Meanwhile, Amazon is preparing to launch a new vertical called Amazon Bazaar, focusing on budget-friendly, unbranded fashion and lifestyle products priced below INR 600. This move follows Amazon's recent entry into the logistics sector in India with Amazon Shipping, which will handle non-Amazon orders in collaboration with direct-to-consumer brands and logistics aggregators.
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