Amazon India has announced a significant increase in commission payouts for over 50,000 creators in its influencer marketing network as part of its strategy to boost sales during the upcoming festive season. The e-commerce giant has revised the payout structure, which will see active creators earning 1.5X to 2X more across various product categories such as fashion, beauty, personal care appliances, home, kitchen, and toys.
In addition to the increased commissions, Amazon will introduce “target-linked incentives” ranging from 10% to 15% of the revenue generated for influencers who drive sales effectively. This move is aimed at leveraging the large fan bases of these influencers to attract more shoppers to Amazon’s platform during its annual festive sale, the Great Indian Festival, which kicks off on September 27, with early access available to Prime members 24 hours in advance.
Specifically, commissions in categories like fashion and luggage will rise from 5% to 9%, while the sports equipment category will see an increase from 2.5% to 7.5%. In response to the move, Zahid Khan, Director of Shopping Initiatives for Amazon in India and Emerging Markets, said, “By raising commission rates dramatically in a number of important categories and providing more resources, we’re giving creators the resources and incentives they need to succeed throughout the holiday season and beyond through initiatives like Creator University and Creator Connect.
This move comes as Amazon intensifies its competition with Flipkart, its main rival in the Indian e-commerce market. To strengthen its position ahead of the festive season, Amazon has launched a range of new initiatives, including three new fulfillment centers in Delhi NCR, Guwahati, and Patna, to support over 2.5 lakh sellers. The company has also reduced selling fees for merchants by 3% to 12% across different product categories in recent weeks.
In addition, Amazon has rolled out its AI chatbot Rufus across India, enhancing customer interaction and service. However, these developments are happening amid ongoing leadership changes and regulatory challenges for the company. Recently, Sameer Kumar stepped in to lead Amazon India after Manish Tiwary’s departure.
Furthermore, Amazon India is facing scrutiny from the Competition Commission of India (CCI) over allegations of breaching antitrust laws. The CCI found the company guilty of prioritizing certain sellers and listings, which is in violation of local competition laws. Just a day ago, the CCI instructed Amazon to provide turnover details to determine the penalty for these infractions.
As Amazon gears up for the Great Indian Festival, it remains committed to strengthening its position in the Indian market despite the challenges ahead.