Amazon India has one more time conveyed modifications to its seller charges as it seeks to overtake Flipkart in various sectors. This move points to a trend of recurrent modifications in seller fees by ecommerce firms. The international ecommerce firm has reduced seller charges in sectors such as luggage and furniture where Flipkart has sharpened its aim, as both seek to get competitive in these sectors and wish to push sellers to provide affordable goods.
Amazon had previously made modifications to its fee structure for seller in April. It made the fees affordable for sellers to export domestically in order to induce more user buying and increase delivery speed.
In its latest change in seller charge structure, referral fees for different fashion goods have been lowered. For instance, for apparel accessories it is reduced from 20% to 15%, while in sectors such as furniture, the fee has been lowered from 14% to 12%. The fee for luggage has also been lowered from 7% to 5.5%, while the charges for eyewear have been lowered radically from 16.5% to 8.5%.
The decision comes as Flipkart plans to make its furniture segment the next big booster of development and witness it develop 4–5 times in 2018, as per a media report previous month. Luggage has also turned out to be a significant sector where Flipkart seeks to overtake Amazon.
Speaking for sellers, Amazon India rolled out a platform for sellers and lenders wherein sellers can select from competitive loan offers and rates to get overdraft or term loans. It will also start its APIs to lenders to connect and lend to the merchants as fraction of the new program, dubbed as the Seller Lending Network. Amazon India presently has 6 lenders namely Capital Float, Capital First, Aditya Birla Finance, Bank of Baroda, FlexiLoans, and Yes Bank.