Snapdeal will charge lesser commission from buyers to increase their sales

In order to compete with the scorching sales of its competitors Flipkart and Amazon, Indian e-commerce company Snapdeal has taken a cut on the commissions that it charges from its sellers. This is the first of its kind move by the e-commerce firm, which is off lately seeing slow sales on its platform after having seen a spectacular performance earlier.

As per sources, Snapdeal now wants its sellers to pass on the benefits to buyers in the form of lower prices, which they hope would bring it more buyers.

Also read: No more discounts over 70% on Snapdeal. Read on to know more

"You may gain from the reduced Snapdeal's marketing fees in achieving more sales, as you will be able to pass on the benefit of reduced marketing fees to the buyer," Snapdeal wrote in a May 12 mail marked to its sellers.

The cut in commission has been applied to certain categories of products as of now, but could be extended to more segments later, the mail added.

Also read: Buy anything on Snapdeal and you may get it within four hours

While some sellers are happy with the cut in commission, some of them have expressed their anger by saying that the move would benefit only selected vendors, because of the "eligibility basis seller rating & fulfilment mode" clause, which means that many sellers won't be able to get the benefits of this rate cut. This would, of course, mean that only selected sellers would be able to sell the same products at lower prices, attracting more buyers and thus being unfair to several others.

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