Amazon takes on Flipkart by slashing seller’s commissions


Mumbai : Amazon has slashed seller commissions on smartphones and software, following rival Flipkart’s decision to increase fees, while also passing on the cost of shipping and returns to sellers. As the Indian company decided to hike its fees, a group of sellers threatened to stop selling products on Flipkart since the the former was also passing on the cost of shipping and returns to sellers.

Amazon has reduced commissions on electronics such as smartphones and tablets, which account for one-third of total online sales, to 3 per cent from 5 per cent of the cost of the device. “We think these revised rates can help sellers to perform even better," Amazon India said in a statement. “We hope sellers will take advantage of these revised rates.” “Amazon has taken a big call in reducing commissions,” said Sanjay Thakur, president of eSellerSuraksha, a lobby group for sellers on online platforms. “Flipkart, on the other hand, is charging more than the industry.”