Amazon’s new seller policy,which will be effective from April 19 ,reduces the fees charged by the company from its sellers. This will bring a change in online price for certain products.
The new policy changes are part of the company’s decision to attract more sellers and to outperform its rival, Flipkart.
Amazon will also hike the fees it levies from merchants in select categories. The development comes after multiple policy changes, which increased the cost of doing business for sellers who have been agitating against these moves. Last year, the company had also introduced a distance based fee under its programme GoLocal.
“The new changes will boost margins for those who are selling on its platform. According to the new policy, we have decreased the referral fees in over 30 categories,” said Gopal Pillai, Amazon’s head for online seller services.
However, Amazon has increased referral fees by up to 50% for product categories like pet food, backpacks and shoes.
“Essentially, sellers will see improvement in their margins. We have over 3 lakh sellers now on the platform and our policy is to ensure growth for everyone regardless of their size and scale,” said Pillai.