Wednesday , 24 January 2018
Breaking News
Home / Technology / Amazon’s new Go Local policy worries online sellers

Amazon’s new Go Local policy worries online sellers



BENGALURU: Amazon will introduce a distance-based shipment fee for third-party sellers from next month, which vendors on its platform say will result in a 15% additional cost of doing business.

According to sellers, the new policy will negate the cost relief they had got due to implementation of the goods and services tax (GST), the benefits of which they say were being passed on to consumers.

The new ‘Go Local’ fee structure will be effective from August 8, according to a communication sent by Amazon to its sellers. “This will lower your shipping costs by up to 35% by charging weight handling fee in proportion to the distance that the shipment travels to the customer delivery location,” the letter noted.

The All India Online Vendors Association (AIOVA), an online seller group, has termed the new policy by Amazon as being unethical. The association also wrote to Amazon saying this will result in higher cost of business for sellers and prices will have to be hiked.

A spokesperson of AIOVA said, “Till now we were faced with the cascading effect of taxes, which got eliminated due to GST. Amazon has increased prices by 15%, which is similar to the service tax. In the post-GST regime, sellers were absorbing 4-5% benefit that would have been passed onto consumers. Now Amazon will eat up this benefit.”

In an emailed response, an Amazon spokesperson said, “The recent shipping fee change for our Fulfillment by Amazon sellers, which is independent of the GST implementation and is based on our regular seller feedback, will provide sellers the opportunity to reduce their costs of doing business on Amazon.”

About SamoB

You don't have to be Boss before you are the Boss for your Boss.

Check Also

HTC U11 will get Android 8.0 Oreo OS update starting today : Company Vice President

HTC, the Taiwanese smartphone maker, in June took the wraps off its flagship smartphone of ...

US shoppers browse stores, buy online as Black Friday deals beckon

CHICAGO/NEW YORK: US stores offered deep discounts, entertainment and free gifts to lure bargain hunters ...

Black Friday pushes Jeff Bezos’ net worth to $100 billion

Being the richest man in the world wasn’t enough. After Amazon shares climbed on Black ...

iPhone X now ships in 2-3 weeks from Apple Online Store

The availability of iPhone X continues to improve. The Apple Online Store is now reporting ...

Leave a Reply

Your email address will not be published. Required fields are marked *

five × 5 =

%d bloggers like this: