Amazon increases commissions for its 50,000 influencers

Amazon India said payouts under the revised structure will increase by between 1.5X and 2X for “active” creators across all product categories

In addition, the e-commerce giant will now also offer “purpose-linked incentives” ranging from 10% to 15% (of generated revenue) for influencers who drive sales

With this, Amazon aims to leverage the fan base of these content creators to attract more users to its e-commerce platform during its holiday sale, which starts on September 27.

To boost sales during the upcoming holiday season, e-commerce giant Amazon has increased commissions for over 50,000 creators who are part of its influencer marketing network.

In a statement, Amazon India said payouts under the revised structure will increase by an amount ranging from 1.5X to 2X for “active” creators across product categories such as fashion, beauty and personal care, home, kitchen, toys and others.

While commissions in categories like fashion and luggage will increase from 5% to 9%, the commission paid to online celebrities in the sports equipment category will increase from 2.5% to 7.5%.

In addition, the e-commerce giant will now also offer “purpose-linked incentives” ranging from 10% to 15% (of generated revenue) for influencers who drive sales.

“By significantly increasing commission rates across key categories and offering additional resources through programs like Creator University and Creator Connect, we’re giving creators the tools and incentives they need to succeed this holiday season and beyond,” said Zahid Khan, Director of Shopping Initiatives, Amazon India and Emerging Markets.

With this, Amazon aims to leverage the fan base of these content creators to attract more users to its e-commerce platform. The move comes just days before the company’s flagship annual holiday sale, the Great Indian Festival.

Sales will begin on September 27, but Prime subscribers will get access to the event 24 hours before anyone else.

Fighting fiercely with Flipkart for dominance in the Indian e-commerce market, the American e-commerce firm has rolled out a slew of new offers and incentives in the run-up to the event.

Last week, it launched three new fulfillment centers in Delhi NCR, Guwahati and Patna to serve over 2.5 lakh sellers. Amazon India had also slashed selling fees for sellers ranging from 3% to 12% across product categories just a few weeks ago.

Last week, the company also announced the full rollout of its AI-powered chatbot called Rufus in India.

The new launches come at a time when Amazon India is grappling with leadership issues and regulatory challenges. Just last week, Sameer Kumar took over the reins of the India operations following the recent departure of Manish Tiwary.

Furthermore, the main area of ​​activity is e-commerce. lagging behind in terms of expansion into the e-commerce market even as its biggest rival, Flipkart, has already made its debut in this segment with its Minutes service.

In a regulatory matter, the company was reportedly found guilty of violating antitrust norms by the Competition Commission of India (CCI). The watchdog found that the company allegedly prioritized certain sellers and listings, which was in violation of local competition laws.

Just a day ago, CCI ordered the company to provide details of its turnover to determine the amount of the fine for violating competition laws.