Will the cost be transferred to sellers? Amazon is going to increase the rates on this site!

It is reported that Amazon announced that it will increase the commission and other fees for sellers in multiple categories on the Indian site, covering electronics, beauty, clothing, glasses, medicines, home furnishings and pets.

Some sellers said that they might increase the prices of some products to offset the pressure caused by rising costs.

According to insiders, for some products priced less than or equal to 500 rubles, the sales fee will be increased from 5.5% to 12%, while for those priced above 500 rubles, the sales commission will be increased to 15%.

In addition to increasing the commission on some products, Amazon has also lowered the rates on certain categories, such as relatively niche categories such as wall painting tools, inverters and batteries.

In addition, Amazon has set a single commission rate for certain categories. For example, for cosmetics, all price ranges are charged a 6% commission.

According to a seller who wishes to remain anonymous, “The platform must understand that increasing the commission will have an impact on the product pricing. No matter how the commission changes, it will eventually be reflected in the product price.”

For e-commerce platforms such as Amazon and Flipkart, the main revenue channel is the commissions collected from platform sellers. The more products are sold on the platform, the more commissions the platform can earn. In addition, sellers also need to pay various fees to the platform, such as storage fees, shipping fees and return fees.

In response, Amazon said the cost adjustment was mainly decided based on changes in market conditions.

"As part of our annual plan, we recently announced changes to our seller fees, which will take effect on May 31," Amazon said in an emailed statement. "Seller fee changes are based on many factors, including market dynamics and macroeconomic factors."

In addition, Amazon has also made adjustments to related fees such as referral fees, long-term storage fees, return fees, and FBA pickup fees. Some shipping fees have even been increased by as much as 20%-30%.

Some sellers speculate that the main reason for Amazon to increase fees is the slowdown in revenue growth. In addition to large-scale layoffs, raising fees is also a way to reduce costs and increase efficiency.

Globally, consumers’ reluctance to spend has severely affected Amazon’s revenue growth. When the nest is overturned, the eggs will be broken. With Amazon’s revenue slowing down, sellers will naturally have a hard time.

Before consumers regain their confidence in shopping, sellers' wallets will probably remain empty for a while.

Amazon

Seller

Rate increase