Group seeks Bezos's help on hiked seller fee
BENGALURU: Caught off guard by the recent increase in commissions by Amazon for its third party sellers in India, a group of independent sellers is reaching out to the etailer's CEO Jeff Bezos.
These sellers have written to Bezos, asking to reconsider 50-100% hikes in commissions across categories. Sellers, in their communication to the Amazon chief, expressed concerns over their business sustainability after the recent policy update, slated to be effective next month.
In its communication to Bezos, they highlighted concerns around the consecutive increase in seller fees within a period of eight months. "Now, we are left with no option but to humbly tell you that the recent fee hike dated April 12, 2017 will be disastrous for the low average selling price (ASP) sellers on Amazon India....We cannot operate on such high costs," said the email sent to Bezos.
An Amazon spokesperson said, "Amazon India has the best interests of sellers in mind and constantly innovates on their behalf to help the community to profitably do business online on the marketplace. Seller success will continue to remain an important focus area for us."
Flipkart had also revised its seller policy recently but the latest move by Amazon is expected to make business costs go up on Amazon. The ecommerce firm claims to have 1.7 lakh sellers.
Sellers are also unsure about passing on the increase in commission to the end-consumer as that could see higher number of order returns and cancellations. Among other charges, the Seattle-based e-tailer is hiking its cancellation charges on every order.
These sellers have written to Bezos, asking to reconsider 50-100% hikes in commissions across categories. Sellers, in their communication to the Amazon chief, expressed concerns over their business sustainability after the recent policy update, slated to be effective next month.
In its communication to Bezos, they highlighted concerns around the consecutive increase in seller fees within a period of eight months. "Now, we are left with no option but to humbly tell you that the recent fee hike dated April 12, 2017 will be disastrous for the low average selling price (ASP) sellers on Amazon India....We cannot operate on such high costs," said the email sent to Bezos.
An Amazon spokesperson said, "Amazon India has the best interests of sellers in mind and constantly innovates on their behalf to help the community to profitably do business online on the marketplace. Seller success will continue to remain an important focus area for us."
Flipkart had also revised its seller policy recently but the latest move by Amazon is expected to make business costs go up on Amazon. The ecommerce firm claims to have 1.7 lakh sellers.
Sellers are also unsure about passing on the increase in commission to the end-consumer as that could see higher number of order returns and cancellations. Among other charges, the Seattle-based e-tailer is hiking its cancellation charges on every order.
