Marking its 10th anniversary in India, ecommerce company Amazon reduced its “sell on Amazon fee” by 10% for all transactions on June 5. The fee is levied on sellers.

“As part of Amazon.in’s 10th anniversary celebrations, customers shopping on Amazon.in will get a 10% cashback up to Rs 250 on a minimum transaction of Rs 1000. Amazon will be providing a 10% waiver on the Sell on Amazon fees for all orders sellers receive on 5th June 2023,” the company said in a blog post on June 1.

Amazon had recently hiked the seller fee, commissions and shipping charges across categories, potentially increasing prices for customers.

Ecommerce companies such as Amazon and Flipkart make money by charging commissions and fees from sellers for products sold through the marketplace. The rates keep changing depending on market conditions, Amazon said. Sellers pay the marketplace fees for inventory storage, shipping, and returns for each product.

Amazon CEO Andy Jassy congratulated the company’s India team on completing 10 years on Monday.

“Congrats to our India team on the 10-year anniversary of Amazon.in. Proud of what you’ve unlocked for customers, small businesses, and entrepreneurs across the country, and excited for all you will invent and deliver in the years ahead,” he said on microblogging platform Twitter.

Amazon’s 10th anniversary in India coincides with the ecommerce behemoth cutting costs, laying off thousands of employees, shuttering non-performing experiments and resetting its overall business globally after two years of unprecedented growth in online shopping that was fuelled by Covid-led lockdowns.Amazon India consumer business country manager Manish Tiwary told ET last week that he is optimistic and committed to the Indian market despite the “ups and downs” it has faced.

Tiwary reiterated that India continues to be one of the tech major’s most promising investments for various reasons, including its large population and GDP (gross domestic product) growth.

Amazon has said it will continue to invest in logistics infrastructure and experiments to tap into the next 200 million users through its social commerce platform Glowroad, which it acquired last year, its business-to-business ecommerce marketplace Amazon Business, and pharmacy vertical Amazon Pharmacy.

But, while the company sounds bullish about India’s long-term potential, the ecommerce industry has been facing headwinds post-Covid.

ET reported on May 11 that ecommerce shipments across major marketplaces saw a significant slowdown in the first quarter of 2023.

Several sources and brands working with Amazon India said the etailer has been impacted the most by the slowdown among leading ecommerce platforms.

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