The revision in sellers’ fees has come at a time when sellers are busy preparing for the next phase of the festive season starting December.
Flush with the fresh round of funding, Flipkart and its group entity eBay India have reduced sellers’ commission rates, effective this month. The latest move is also likely to incentivise sellers in Flipkart and eBay India to increase discounts on the online marketplaces, and thereby, attract more customers. While Flipkart has reduced its commission rates for certain items such as T-shirts, books, mobile cases and covers and others in an attempt to cash in on the huge demand for low-value products, eBay India has slashed its insertion fee to zero. Insertion fee, or listing fee, is the marketplace charge whenever the seller lists an item on eBay.in, even if it does not get sold. Flipkart does not charge anything from sellers for listing of goods. For low-value items such as books and T-shirts that are priced below Rs 300, Flipkart has reduced its commission rate of 5% and 15% to 0% and 10%, respectively. And for items like mobile cover and screen guards, it has cut the fee from 22% to 14%. Flipkart has also announced that under Flipkart Fulfilment, which starts from November 16 and will continue till February 13, 2018, sellers can recall their saleable and non-saleable inventory free of charge.
In what could further bring cheer to sellers, Mintkart India (formerly eBay India) in a communication to sellers said final value fees have also been revised to zero across all product categories. Final value fees are charged on final sale price of the item based on the product category of the listing. The new rates are effective from November 21, 2017. Queries sent to both Flipkart and eBay India on this development remained unanswered till the time of going to press. E-commerce companies try to beat competition by becoming the lowest-cost marketplace for both sellers and buyers. Bringing down sellers’ fees helps them reduce operating costs, and thereby, pass on the benefits to customers.
The revision in sellers’ fees has come at a time when sellers are busy preparing for the next phase of the festive season starting December. Flipkart has been able to maintain its lead over arch-rival Amazon India. Group companies like Myntra, Jabong and eBay India have helped Flipkart consolidate its position. In August this year, Flipkart had successfully completed its merger to make eBay.in a Flipkart group company. The deal was announced in April when Flipkart had raised $1.4 billion from global majors eBay, Tencent and Microsoft.