Amazon to charge ₹5 marketplace fee on all orders, including Prime
In a recent move, Amazon India has introduced a new marketplace fee of ₹5 on every customer order, including Prime orders. The fee, which is effective immediately, is designed to support the platform’s operational costs. However, the fee will not be applicable on Amazon Business, Amazon Bazaar, Amazon Now, Amazon Fresh, and on gift card purchases (physical and digital).
This new fee is a significant change for Amazon India’s customers, who have grown accustomed to the platform’s competitive pricing and fast delivery options. But what does this mean for customers, and how will it affect their shopping experience on the platform?
What is the new marketplace fee?
The new marketplace fee of ₹5 is a flat rate that will be charged on every customer order, including Prime orders. This fee is aimed at offsetting the operational costs associated with hosting and managing the platform, including costs such as logistics, customer support, and infrastructure.
What orders are exempt from the fee?
Not all orders on Amazon India will be subject to the new marketplace fee. The following types of orders are exempt:
- Amazon Business: This is a platform designed for businesses, and orders placed on this platform will not be subject to the new fee.
- Amazon Bazaar: This is a platform that allows customers to buy and sell products, and orders placed on this platform will not be subject to the new fee.
- Amazon Now: This is a one-hour delivery service that offers fast and convenient delivery options, and orders placed on this platform will not be subject to the new fee.
- Amazon Fresh: This is a grocery delivery service that offers fresh produce and other essentials, and orders placed on this platform will not be subject to the new fee.
- Gift card purchases (physical and digital): Gift card purchases will not be subject to the new fee.
How will the fee affect customers?
The new marketplace fee is likely to affect customers in several ways. Firstly, the fee will add to the overall cost of the product, making it more expensive for customers. Secondly, the fee may lead to higher prices for products on the platform, as sellers may factor the fee into their pricing.
Additionally, the fee may also lead to changes in the way customers shop on the platform. For example, customers may start to look for alternative shopping options that do not charge marketplace fees. Alternatively, customers may start to opt for slower and less expensive shipping options to minimize the impact of the fee.
How will the fee affect sellers?
The new marketplace fee is also likely to affect sellers on the platform. Sellers will need to factor the fee into their pricing, which may lead to higher prices for customers. Additionally, the fee may also lead to changes in the way sellers operate on the platform. For example, sellers may start to look for alternative marketplaces that do not charge marketplace fees.
On the other hand, the fee may also lead to increased competition on the platform, as sellers look for ways to offset the cost of the fee. This may lead to more competitive pricing and better services for customers.
Conclusion
The introduction of a new marketplace fee of ₹5 on every customer order, including Prime orders, is a significant change for Amazon India’s customers and sellers. While the fee is designed to support the platform’s operational costs, it is likely to add to the overall cost of products and may lead to changes in the way customers and sellers operate on the platform.
As customers, it is important to be aware of the new fee and how it may affect our shopping experience on the platform. As sellers, it is important to factor the fee into our pricing and to look for ways to offset the cost of the fee.
Source:
