Amazon Raises Content Creator Commission During the Festive Sale

Nitin Konde, Apoorva Bajj

Sep 24, 2024 — 3 min read

Amazon Raises Content Creator Commission During the Festive Sale

The online retailer Amazon has revealed an increase in its normal commission earning rates for select categories within its network of over 50,000 influencers ahead of the festive sale.

According to its site, for active creators who collaborate with Amazon, the updated commission structure offers influencers a significant rise ranging from 1.5x to 2x across a wide range of product categories, including fashion, beauty, and personal care products.

Director of shopping initiatives for India and emerging markets, Zahid Khan stated that Amazon is giving creators the tools and incentives they need to succeed during the festive season and beyond by drastically raising commission rates across important categories, the company is providing additional incentives through various programs to further back these creators.

Amazon Live Programs

With Amazon Live, sellers can stream video material as a way to promote their products or make sales. It can be used by sellers and marketers to show off their goods and sell them to people who might be interested. By showing a live demo of their product, sellers can talk to buyers and answer their questions right away.

Hundreds of producers will host over 1,500 live streams in a variety of categories for the Amazon Great Indian Festival (AGIF), including smartphones, home appliances, décor, fashion, and cosmetics, in addition to cost adjustments as part of the Amazon Live program.

Amazon Tackling Competition

Confronted with formidable competition from Flipkart in India's e-commerce sector, Amazon has launched several new initiatives. The initiatives include the establishment of three new fulfillment centers in Delhi NCR, Guwahati, and Patna, which will help over 250,000 merchants.

Rufus, Amazon's artificial intelligence chatbot, was also launched in India recently. Manish Tiwary had already left the company, and Sameer Kumar had been appointed to head of operations in India. These actions occur as Amazon addresses legislative obstacles and managerial changes, while Flipkart enhances its rapid-commerce footprint with the introduction of its "Minutes" service.

Flipkart’s Move

At the same time, renowned brands like Hero, TVS, and Bajaj are among the many electric and conventional two-wheelers that Flipkart is stocking up on in preparation for the festive season. Flipkart saw a sixfold increase in demand for two-wheelers in August 2024 compared to the previous year.

Amazon and Flipkart Going through Legal Trouble in India

An investigation into Amazon and Flipkart was ordered by the Competition Commission of India (CCI) in the year 2020. The CCI was concerned that the two companies were reportedly giving preference to certain listings and were encouraging particular merchants with whom they had business connections.

Investigators from the Competition Commission of India (CCI) concluded that Amazon and Flipkart had developed an environment in which preferred merchants appeared higher in search results, thereby displacing other vendors. The CCI investigators made this discovery in two distinct reports, each of which was around 1,696 pages long and submitted on 9 August.

According to both findings, which are not available to the public and are being published by a renowned media house for the very first time, each of the anti-competitive practices that were said to have occurred was investigated and confirmed to be genuine.