Snapdeal follows peers, cuts seller commission

By: | Updated: May 17, 2017 3:34 PM

After online e-commerce giants Amazon and Flipkart tweaked their seller commissions, another player Snapdeal has reduced the fees it charges from the sellers for over 120 sub-categories.

Snapdeal will bear the cost for reverse pickup and payment collection, while packaging and shipping will be borne by sellers. In case of replacement/exchange also, reverse pick up costs will be borne by Snapdeal. (Source: Reuters)Snapdeal will bear the cost for reverse pickup and payment collection, while packaging and shipping will be borne by sellers. In case of replacement/exchange also, reverse pick up costs will be borne by Snapdeal. (Source: Reuters)

After online e-commerce giants Amazon and Flipkart tweaked their seller commissions, another player Snapdeal has reduced the fees it charges from the sellers for over 120 sub-categories.

These include digital products, electronics, women’s fashion and FMCG products as part of its policy to attract more sellers to its platform.

The reduction in fees ranging from 0.2 – 18% have been incorporated on the basis of the feedback received from sellers and will be effective from this week, a company statement said. The company has also increased it for some categories from 0.5 to 5.5%.

Snapdeal will bear the cost for reverse pickup and payment collection, while packaging and shipping will be borne by sellers. In case of replacement/exchange also, reverse pick up costs will be borne by Snapdeal.

The company claims to have about 3 lakh sellers on its platform, while its competitor Flipkart has about 90,000 sellers and Amazon about one lakh sellers.

Talking about the policy changes, Vishal Chadha, senior vice president, market development at Snapdeal, said “We believe reduction in marketing fees will foster growth for our sellers.

We have worked closely with our sellers and basis their feedback, we have made these policy changes to make them in-line with e-commerce industry best practices.

Reducing returns from the market by ensuring best in class logistics and technology advances is a key focus area for Snapdeal. While we share costs with our sellers in case of return; we will continue to forego marketing fees to reduce the costs for sellers.

These policy changes will help us in our continuous aim to build a fair, transparent and competitive marketplace.”

A month ago, several hundred sellers on Flipkart went on a virtual strike to protest against the company’s revised commission fee and sales return policy.

Sellers decided not to process any Flipkart orders for one day, even as Amazon reduced the seller commission after it increased in April.

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