Amazon Invests In Indian Ecommerce

Amazon is to reduce commission in the country

Amazon has significantly reduced the commission it takes from sellers in India, in order to undercut rivals Flipkart and Snapdeal.The move comes very soon after Flipkart came under fire, after it increased its commission in order to cut losses.The reduction in commission has hit Amazon's electronics sales the hardest, after it reduced the amount by 30%, down to just 3% of the amount of the device.This is particularly useful for Amazon, as one third of all items sold on Amazon, Flipkart and Snapdeal are electronic devices.Amazon said in a statement that “these revised rates can significantly help sellers to perform even better and succeed in their business”.Amazon has had to reduce commission as opposed to the actual cost, as Indian law makes it difficult for ecommerce retailers to offer discounts, which subsequently makes it harder to lower prices.

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