Effective September 1! Amazon India increases seller logistics and commission fees

According to the Economic Times of India, Amazon India told sellers on its platform that from September 1, the Indian site will increase logistics costs and increase commissions for some categories.

In terms of logistics, for 500-gram packages, Amazon India’s national transit charges for sellers who have passed performance assessments have increased from 36.5 rupees to 38.5 rupees; for other sellers, the charges have increased from 58 rupees to 60 rupees.

Merchants familiar with the matter said that the increase in logistics costs was mainly due to the recent increase in fuel prices, which made the delivery cost of each order higher.

Since the beginning of this year, fuel prices in India have been gradually rising. According to data from August 25, in Mumbai, the price of gasoline per liter was as high as 107.52 rupees. In addition, in Kolkata, the price of gasoline per liter also reached 101.52 rupees. In addition, the price of gasoline in most cities hovered around 100 rupees per liter (about 1.3 US dollars per liter). At the same time, the price of gasoline in New York was only about 0.6 US dollars per liter. It can be said that the cost of buying gasoline in major Indian cities such as Mumbai and Kolkata is almost twice that of New York.

In addition to logistics costs, Amazon India has also increased commissions for some categories. Amazon India told merchants that it will increase commissions for 82 categories, including headphones, toys, beauty products, etc.

A spokesperson for Amazon India said the changes are part of its annual process. Amazon India is currently revising its fee schedule. The adjustment of seller fees is based on various factors, including market dynamics, costs, seller feedback, and overall customer experience and choice. For certain categories, Amazon India will charge fees based on price ranges.

The spokesperson also added that to encourage sellers to use FBA, help them simplify the sales process and expand their business, Amazon India has reduced the shipping charges for products priced at 250 rupees and below shipped from its fulfillment centers.

Currently, Amazon India has more than 50 warehouses. Sellers who use FBA can basically deliver goods to all areas covered by India's postal codes. Among them, up to 65% of orders are sent to second- and third-tier cities where physical shopping is not well developed.

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