Amazon to Raise Seller Fees and Commission Charges, and Increase Product Return Fees

Starting from May 31, shopping on Amazon, the popular e-commerce website, is expected to become more expensive. According to a report by Economic Times, the company will be revising its seller fees and commission charges. In addition, fees for handling product returns will also be increased. E-commerce businesses generate revenue by collecting commissions and fees from their vendors.

The e-commerce giant confirmed the fee revisions in an email statement to ET, stating, “As part of our annual process, we have recently announced fee revisions that will be effective from May 31, 2023.” The report reveals that the company will raise seller fees in several categories, including clothing, beauty, groceries, and medicines.

The spokesperson for Amazon explained that the seller fee revisions are influenced by market dynamics and macroeconomic factors. They mentioned changes to the fee rate card, introducing new fee categories and reducing fees in some existing categories.

Specifically, the report indicates that the seller fee for over-the-counter medicines is expected to increase from 5.5 percent to 12 percent for products valued at ₹500 or less. For products above ₹500, a seller fee of 15 percent is anticipated.

In the apparel category, the report states that seller fees will rise from the current 19 percent for products priced over ₹1,000 to 22.50 percent in certain cases.

Furthermore, in the beauty section, the commission for products under ₹300 will increase to 8.5 percent. Additionally, the company has raised delivery charges for domestic shipments by approximately 20-23 percent.