With effect from September 9, e-commerce giant Amazon India is planning to make changes to its seller fee structures. Several categories will witness a decrease in commissions leading up to the holiday season.

Amazon India’s director of selling partner services, Amit Nanda says, “The firm has reduced commissions in the range of 3-12 percent for 59 sub-categories.The reduction is focused on products with low average selling price (ASP).”

“We also wanted to help our sellers in planning for their Diwali and other festive sales with this change, we’re hoping sellers will find it as cheap, if not cheaper, to sell some products on Amazon compared to their offline channels,” says Amit.

Amazon increased commissions in the range of 10-30 percent across major segments. At the time, it had shifted several categories like car electronics, keyboards and mouses, and personal care appliances from a single flat commission to a tiered system based on ASP.

This time, a number of categories like apparel, home furnishing, fashion and sports that have low ASP products will see a reduction in seller commissions.In apparels, for instance, the new commission range for ethnic wear is 4.0-17.5 percent depending on the ASP, compared with 7.5-17.5 percent now. For men’s t-shirts, Amazon will now levy a fee of 5.0-21.0 percent, compared with 13.5-21.0 percent, while for sweatshirts and jackets, it will be 8.0-12.0 percent against 8.0-24.0percent.

“We feel that the drop in fees is dramatic enough to shake sellers up so they say that yes, this time we will be operating on very different economics, Though the reduced fees for low ASP items “may have a larger uptake in tier 2, 3 (towns) and beyond,” says Amit.

Amit says, “We have good momentum from the Prime Day and Freedom sales in July and August. The current trends make me feel confident that this will be a bumper festive period, but there is also some nervousness as we will be scaling new records.”