Sellers are upset with Amazon India after it increases referral rates by 9%

In a bid to make profits, Amazon India has increased its referral rates, or the commission, it charges sellers on its e-commerce platform last month.

Amazon India has increased the referral rates on mobile phone accessories by 9% and in case of luggage, pet accessories and shoes 2% has been hiked.

Apart from commission, the online marketplace also increased charges for logistic support it gives to sellers.

As per the revised rates of Amazon Easy Ship logistical support, minimum charge is applicable up to a weight is 500 grams and if any item weighs more than 500 grams, the seller will be charged in multiples of the price applicable for each 500 grams.

The sellers have raised a red flag on this issue and have also alleged that Amazon India is charging less from Cloudtail India, the largest vendor on its platform.

"On one side they are increasing commission of sellers, (and) on the other side they have decreased commission for Cloudtail. We demand Amazon to come clear on its contract with Cloudtail so that we sellers do our planning accordingly," spokesperson of the All India Online Vendors' Association (AIOVA), told ET.

AIOVA claimed Amazon India did not consult sellers before changing the rates. "Changes in commission cannot be avoided. But Amazon is on a one-sided track, not taking sellers' views on policy changes," its spokesperson told ET.