Amazon India Cuts Commission Fee For Small Sellers, Flipkart Waives Storage Fee

Amazon India said that it has slashed its commission fee by 50 percent till June-end for sellers on its platform who sold goods worth Rs 10,000 or less before the COVID-19 outbreak in India, a PTI report said

The e-commerce giant will also waive storage fees for products at its warehouses till 30 April as part of its efforts to support seller partners during the COVID-19 crisis that has disrupted businesses globally.

"A significant number of our 600,000 seller base in India include micro-entrepreneurs, small and medium businesses as well as women sellers, artisans and weavers. We are taking several steps to support and stand by our partners in this tough situation and help them navigate through this challenge," Amazon India vice president Seller Services Gopal Pillai told PTI.

The SoA or referral fee is paid by all sellers for selling their products on Amazon's platform and is a percentage of the total sales price.

This waiver will apply to all sellers whose average GMS (Gross Merchandise Sales) for January and February 2020 is Rs 10,000 or below. Sellers will also get incentives for bringing in more high priority products (like food, grocery and health products) into Amazon's warehouses. It has refunded all fulfilment and referral fees for orders cancelled during the lockdown period to help reduce the impact of these cancellations on seller partners.

Similarly, Walmart-owned Flipkart is extending its support to its sellers with its CareTouch Select service, a premium service that allows sellers to get quicker resolutions for their business-related queries, by including the service in their subscription terms during the lockdown period.

The subscription will continue to extend depending on when the lockdown lifts.

Also, Flipkart has waived the storage fee for April, under its Fulfilled by Flipkart service that allows sellers to store their inventory in Flipkart Fulfillment Centers for faster deliveries. It has also offered all its sellers a health insurance plan, specific to COVID-19, in partnership with Digit Insurance at special rates.