Amazon Slashes Referral Fee To Bring Down Product Price

3 min read
Amazon Slashes

To match up the stiff competitions from Flipkart and Snapdeal, World’s E-commerce giant Amazon announces to lower the referral fee for the affiliates! Instead of charging sellers extra percentage, Amazon has chosen a way out to meet the price gap with its competitors.

Amazon has listed up a new referral fee structure that shows an extra cut of referral fee by up to 5-7 percentage in different categories.

Before a few days, Flipkart increased its seller commission and passed the shipping charges to the sellers while it used to consume the shipping cost itself before. Then with a strategic move, Amazon cuts down sellers’ commission to attract new sellers.

Another Ecommerce company Snapdeal is on its way to put a full stop on its deep discount policy! Every e-commerce company is trying to find out some ways to cut the costs as the loss of all e-commerce companies touched Rs. 7000 Crore in the last financial year together.

Apart from cutting down the costs, they are looking for fresh fund to inject new strategies into marketing sections. Snapdeal is in talks with Soft Bank to get a fresh fund of $300- $400 Million, while Amazon has got $3 billion from its parent company. For Flipkart, there is no such news till now.

Many sellers are migrating from Flipkart to Snapdeal or Amazon after the raising conflicts on seller commissions and shipping charges. Almost all sellers agree that they need to increase the prices of the products to meet the new policies of Flipkart. It may hurt their core marketing strategy as the same product may be available at low price in other e-commerce websites like Amazon or Snapdeal.

Flipkart and Snapdeal are under pressure from investors to check their cash burn rate while Amazon has no such pressure, that’s why the biggie is free from all pressure and is playing the game in its way.

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