Amazon India has increased the commissions on numerous categories, including beauty and personal care, baby care, automotive products, food, and medications.

The revised tariffs will go into effect on May 31, 2023.

The marketplace makes money by charging sellers a commission of a portion of the final sale price (item price plus shipping expenses).

It revises the costs on a regular basis based on market rates and deducts 18 percent as GST charges separately.

The fee increase indicates that consumers might have to brace themselves for higher-priced items on the Amazon India marketplace, as sellers will raise their prices to cover excessive fees.

Platform fees for over-the-counter medicines—generic medicines available for purchase without a prescription from a medical practitioner—rose the most, from 5.5 percent to 12 percent for items priced below Rs 500 and 15 percent for items priced above Rs 500, according to the company's seller page on its website.

Grooming and personal care equipment will be taxed nine percent above Rs 1,000, while sleepwear garments will be charged 15 percent over Rs 500, up from 13 percent previously. All garment categories, including inner-wear, accessories, and ethnic wear, have also been revised.

Amazon India has also increased the cost of refunds incurred by merchants. Based on the number of orders fulfilled, customer feedback, reviews, and returns, the new framework categorizes merchants into four tiers: basic, standard, advanced, and premium. The prior arrangement only had one type of seller.

In addition, the e-commerce giant has raised the cost of long-term inventory storage—keeping inventory in Amazon-owned warehouses for longer than 365 days—to Rs 40 per unit (1,105 cu.ft.) from Rs 30 per unit (850 cu.ft.).