Amazon lowers commission charges post implementation of FDI e-commerce rules.

Key Highlights

Amazon has reduced the commission to 50% on some particular Fast moving consumer goods and 35% for famous fashion sellers.

New commission system is introduced by Amazon in which best performers will get a benefit to pay 35% less commission as compared to the previous

Amazon has ceased all products from Apperio Retail and Cloudtail to cope with new rules.

New FDI e-commerce rules have affected industry catastrophically. Various e-commerce Unicorns have rectified their policies and business strategies to cope up new policies of FDI. Amazon has also reduced its commission charges to invite more independent sellers and establish itself as a friendly marketplace.

According to the ET report, now the commission has reduced to 50% on particular Fast moving consumer goods and 35% for famous fashion sellers.

Amazon organized a bit to encourage sales from independent sellers. It has introduced a new commission system for fashion vendor which is based on its rating. Best performers will get a benefit to pay 35% less commission as compared to the previous amount. Amazon has also introduced an incentive system for vendors according to their position on the rating scale.

An Amazon spokesperson said, “We bring limited period fee promotions continuously for our sellers to encourage them to grow their business on Amazon.in marketplace.

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Since the application of new FDI rules from February 1, Walmart and Flipkart have together lost $50 Billion in market capitalization. According to India’s new foreign direct investment policies:-

1. Cashback system should be fair and crystal clear to the buyer and seller.
2. E-commerce marketplace is prohibited to show ownership or control over entities.
3. E-commerce companies can do a transaction with sellers only on a business to business basis.
4. Etailers are not allowed to put a mandatory situation to any seller to sell any product exclusively on its platform.

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Amazon India has also wrapped off all product listings from preferred sellers as Apperio Retail and Cloudtail to cope with new rules. Amazon is trying best to grab the market and generate revenue on keeping in consideration of new FDI policies.

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