Amazon India introduces Rs 5 marketplace fee on all orders, even for Prime members

Amazon India has introduced a Rs 5 marketplace fee for all online orders, including Prime members. This fee, similar to those implemented by food delivery apps, is justified by Amazon as contributing to a seamless shopping experience,.

In India, Amazon now charges an extra Rs 5 for online orders, which the site refers to as a marketplace fee. Apps like Zomato, Swiggy, and others now frequently charge fees of this kind, stating that it improves their operational experience. Amazon now appears to be making the same argument for the cost that both free and Prime members will have to pay. This is a one-time cost that will be included in your total and includes taxes for online purchases.

What did Amazon say?

A thorough letter outlining the new marketplace tax and its justifications for implementing it for all customers has been provided by Amazon. In this article, Amazon stated, "This flat fee—applicable to all customers — supports Amazon's commitment to provide a seamless and valuable shopping experience."

For some reason, Amazon, a multinational giant that has operated its online store in the nation for more than ten years, feels the need to charge for the privilege of operating a marketplace that houses millions of brands and goods. According to the firm, the additional charge will appear as a distinct line item on the product summary invoice and even in the email you get with the pricing and purchase information.

Not all transactions are subject to this fee. Exemptions include:

•Gift card purchases (physical and digital)

•Orders via Amazon Business, Bazaar, Amazon Now, and Amazon Fresh

•Digital services like recharges, bill payments, ticket bookings, and subscriptions

•Orders with other processing or exchange fees already applied

When companies like Zomato and Swiggy began charging for the convenience of food delivery, the practice of these fees began. However, several of these platforms have now raised their platform costs from a flat Rs 2 to Rs 11. Additionally, analysts have calculated that the addition of these fees has contributed to the corporations' increased income, which ultimately manifests itself in their impressive quarterly balance sheets.

While Rs 5 might seem negligible, this move could add up for frequent shoppers. Amazon maintains that the fee is essential for sustaining its seller platform. Still, some users — especially Prime subscribers — may view it as a hidden cost that chips away at the value of “free shipping.”