Tue. Mar 19th, 2024

With the festival season fast approaching, Flipkart is looking to attract more sellers on its platform as it cuts commission rates across low priced categories. The new rates are set to be effective from 17th August. This news comes two months after Amazon had reduced its seller fees.

The categories that will see rate cuts include smaller average selling price (ASP) items like laptop bags and mobile holders.

For laptop bags, Flipkart has reduced commission it charges its seller to 4% from the earlier 13% and for mobile holders, the new reduced commission is 17% from 30% earlier, according to the rate card shared by Flipkart with its sellers.

The company has also lowered its fixed fee, the fee paid by sellers per order, to ₹15 from ₹20 for orders costing below ₹500 and up to ₹1,000. While the fee for orders costing above ₹1,000 is reduced to ₹30 from ₹40.

The changes in the seller fees have been confirmed by Flipkart.

Previously, Flipkart had also slashed its seller fees in April, when it had reduced commission for orders below ₹500 for categories like books and apparels. Its rival Amazon reduced its seller fees around two months back for categories like furniture and luggage.

While the reduction in the seller fees is set to bring some relief to Flipkart’s sellers, the All India Online Vendors Association has a different opinion. It claims that the restructuring of the seller fees is not bound to make much of a difference to online merchants unless the preferential treatment towards certain sellers by the e-commerce marketplaces is not stopped.

Both the e-commerce titans are flush with funds at the moment, Flipkart’s acquisition by Walmart had raked in $16 billion, while Amazon recently pumped in ₹2,700 crores in its Indian arm, in order to prepare for the coming festival season. Both the companies are set to offer huge discounts to its users to expand their user base, in order to boost their sales.

By Varun

Startups | Books | Ideas

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