Bengaluru: In a significant move to boost small entrepreneurs in the online marketplace, Amazon India has announced a zero referral fee on the sale of approximately 12.5 crore products priced below 1,000 rupees.
This change is expected to increase the profit margins of small traders and trigger a new revolution in the e-commerce sector.
Effective from March 16, this new scheme applies to products across more than 1,800 categories. Along with this, Easy Ship delivery charges for items priced below 300 rupees have been slashed by more than 20%. With these two benefits combined, sellers will be able to save up to 70% on their total cost of sales.
There are several factors supporting the growth of small businesses under this plan. Due to the absence of referral fees, products like apparel, electronics, and kitchen accessories can be offered to customers at even lower prices. Given the lower fees, sellers can list a larger number of products online, aiding in business diversification. The amount saved on each unit sold will serve as significant capital for small traders. For example, a saving of up to 139 rupees is now possible on earphones priced at 798 rupees.
The reduction in Easy Ship fees will also allow traders from Tier-2 and Tier-3 cities to easily reach customers across the country. Traders can use the saved money to improve packaging or for advertising to strengthen their brand. This measure will pave an easy way for artisans, small manufacturers, and regional brands to start online businesses without any hurdles. Amazon's decision is set to give wings to the dreams of millions of small entrepreneurs across India, further solidifying their participation in the e-commerce ecosystem.