Inside Amazon’s new seller strategy: A shadow fight with Meesho and boosting ‘new Cloudtails’

An employee takes stock of stacked products at Amazon’s newly launched fulfilment centre on the outskirts of Bangalore, India.

Synopsis

Amazon has made several major revisions in the fees it charges its sellers across various categories. The move reflects the company’s two-pronged strategy to fight stiff competition and sharpen focus on profitability. How will competitors react? And what does it mean for consumers?

Amazon has brought on board over a million merchants from across the country to sell on its platform over the past 10 years of its operations in India. While the relationship between the platform and the sellers has mostly been a tumultuous one, recent revisions by the platform to the seller fee structure have left them wondering about the rationale. To be sure, both Amazon and Flipkart have frequently made changes to these seller commissions

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