Starting May 31, Amazon India will increase seller fees for a number of key categories such as apparel, beauty, groceries and medicines, which industry experts said could make the products costlier on the platform as sellers might reduce discounts offered to consumers.
Experts also believe that Amazon India’s move could spur other e-commerce players such as Walmart-owned Flipkart, Reliance’s JioMart, and Tata-owned BigBasket to increase seller fees as the firms focus on profitability and cutting losses. Seller fee is the commission Amazon charges sellers on its platform.
“All the major e-commerce players in the country are making losses and are focusing on profitability. Now that Amazon is increasing seller fees, this would lead other players to also hike seller fees,” said a person aware of the strategy of large e-commerce firms in India. “It is like in the telecom industry, if Reliance increases ca
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