Amazon India is set to update its seller fees starting from April 7th.

Amazon India has informed its sellers about forthcoming changes to its fee structures effective from April 7th, with adjustments across various categories based on product pricing.

According to a notification seen by ET, Amazon will be revising fees related to shipping, referrals, and technology costs. These fees, levied on sellers for each item sold on the platform, constitute a significant revenue stream for the ecommerce giant. Amazon periodically updates these fees, with the last revision occurring in May 2023. Sellers sometimes offset the impact of fee hikes by increasing product prices.

Several categories, including car electronics, camera accessories, keyboards, mice, and personal care appliances, will transition from a flat price to a tiered pricing system. Notably, certain categories such as beauty products, grocery, gourmet gifts, doors, windows, and 3D printers will witness notable fee increases. Conversely, categories like inverters, batteries, and fragrances will experience slight decreases in fees.

In a statement, Amazon India emphasized that seller fees and incentives are crucial long-term drivers for individual businesses and the marketplace, aiming to enhance the platform’s appeal for sellers and foster efficient growth opportunities.

Additionally, Amazon has adjusted shipping prices, with revisions to fees for ‘easy ship,’ ‘self-ship’ services, and the upper limit for ‘seller flex’ service. Furthermore, the company has discontinued its Zero Fee fulfillment policy, now charging a weight handling and shipping fee for standard-sized shipments exceeding Rs 20,000.

Amazon Seller Services, responsible for operating the Amazon marketplace, reported a 3.4% increase in revenue to Rs 22,198 crore in the financial year ended March 31, 2023. However, its losses widened by about a third to Rs 4,854 crore.

In February, ET reported that Amazon had infused Rs 830 crore into Amazon Seller Services, part of its Rs 1,000 crore investment in Indian entities thus far in the year.