Flipkart Changes Seller Policy to Counter Amazon

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Startup news - entrepreneurs of India

To counter Amazon’s move to attract sellers with lower marketplace commissions, homegrown e-tailer Flipkart is  is bringing in new changes to its seller policy.

The changes will largely see cuts in commissions for lower priced products, which will be applicable from April 16. Amazon’s new policy will be effective from April 19.

Flipkart’s new seller policies, will see third-party merchants reduce their costs of doing business especially for products priced below Rs 300. For products priced higher than Rs 300, costs would largely remain unchanged starting April 16.

Flipkart, which is now trying to revive their book business, has taken off the commissions it levies on titles priced under Rs 300. Books typically have a low average selling price and the latest changes would help the company increase its overall catalogue .

“This (introduction of new seller policy) is being done to counter Amazon’s new seller policy. Now both the companies are trying to sweeten what they offer to merchants to get them on board. The move would likely bring some reduction in overall cost of doing business,” said a merchant.

There will also be reduction in commission for products in low-priced segments. On the other hand, Amazon hiked the commission in select categories to compete with Flipkart.

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