Paytm cuts commission to take on industry leaders like Flipkart and Amazon

Paytm e-commerce, backed by China’s Alibaba Group, looks inspired by its investor in ways more than one.

First, it started Paytm Mall on the lines of Alibaba’s shopping portal TMall, and now, it has lowered the commission that it charges from sellers on its platform. This, reportedly, is being done to take on industry leaders and Paytm’s larger rivals like Flipkart, Amazon and Snapdeal.

"To help you get more out of selling with Paytm, we are lowering the base commissions for certain categories to 1.65%," said an email that the company sent to its sellers. "With a lower commission, you can now offer the most competitive prices to your customers and increase your chances of boosting sales." The change will be effective from March 17, and is applicable to several categories like home decor, furnishing, hardware fittings, kitchen category and others.

Also read: Paytm does a U-turn, suspends 2% charges on credit card recharge

Paytm Mall, which was launched last month, has tougher requirements for sellers that wish to be on the platform. With Amazon India leading the race and other e-commerce platforms suffering cash crunch, Paytm Mall is being seen as Alibaba's entry into India's e-commerce space.

Also read: Alibaba might acquire an Indian site for online movie ticket booking

On the other hand, the company will introduce marketplace commission on shipping charges, which would vary as per the category. This new change will be effective from March 20, said the mail.

(Image source: Initiate India)