1 week ago
Amazon and Flipkart Tighten Seller Fees Before Festive Season
Amazon and Flipkart are changing the fees that online sellers may have to pay before the busy festive shopping season.
Amazon now calculates some cancellation charges using the value of the order.
The charge ranges from 2% to 10%, and an 18% goods and services tax is added.
Amazon will also increase some closing fees by Rs 1 or Rs 3.
Flipkart will charge sellers when orders are late, cancelled, or both late and cancelled.
New Flipkart sellers are protected from these penalties for their first three months.
The companies say the rules are meant to encourage sellers to send orders on time and improve customer service.
Some sellers say delivery problems, platform issues, busy periods and customers can also cause delays or cancellations.
Amazon changed cancellation-fee calculations for Easy Ship and Self Ship sellers effective August 17, 2026.
Amazon’s cancellation fee ranges from 2% to 10% of order value, with 18% GST charged additionally.
Amazon will raise closing fees by Rs 1 or Rs 3 from September 7, 2026, citing higher fuel and logistics costs.
Flipkart introduced Rs 30, Rs 60 and Rs 90 fulfilment penalties effective August 23, 2026.
Amazon says the policy targets rare seller-initiated cancellations, while seller representatives warn that outside factors could unfairly burden small businesses.
- Who
- Amazon, Flipkart, marketplace sellers and seller representatives, including Vinod Kumar of the Forum for Internet Resellers, Sellers and Traders.
- What
- Amazon revised seller cancellation and closing fees, while Flipkart introduced penalties for fulfilment delays and cancellations.
- Where
- Amazon India’s marketplace and Flipkart’s e-commerce platform in India.
- When
- Amazon’s cancellation-fee changes took effect August 17, 2026; Flipkart’s penalties took effect August 23, 2026; Amazon’s closing-fee increases begin September 7, 2026.
- Why
- The companies said the changes are intended to encourage reliable fulfilment, better seller planning and improved customer experience. Amazon also cited higher fuel and logistics costs.
Marketplace rationale
Seller concerns
Purpose of the charges
Marketplace rationale
Amazon and Flipkart said the revised fees and penalties are designed to encourage timely, dependable fulfilment, better planning and improved customer experience.
Seller concerns
Seller representatives said penalties should account for logistics failures, platform issues, demand spikes and customer-related causes.
Responsibility for cancellations
Marketplace rationale
Amazon said its cancellation fee is conditional, applies in specified circumstances and includes measures to protect sellers when cancellations are beyond their control.
Seller concerns
Some sellers said cancellations can occur when delivery personnel fail to arrive for scheduled pickups, questioning why sellers should pay the charge.
Effect on sellers
Marketplace rationale
Flipkart’s monetary penalty system replaces potentially longer account restrictions for Dispatch By Date breaches, while compliant sellers may receive faster payment settlements and complimentary advertising credits.
Seller concerns
Vinod Kumar said rising fees and penalties could hurt MSMEs with thin margins and called for transparent responsibility attribution, proportionate charges, advance notice and a simple way to challenge wrongful fees.
Key facts
- Amazon cancellation-fee rates
- 10% for orders below Rs 10,000; 8% for Rs 10,001-Rs 50,000; 5% for Rs 50,001-Rs 1,00,000; and 2% above Rs 1,00,000.
- Amazon cancellation scope
- The fee applies to certain seller-initiated cancellations and automatic cancellations when shipment is not confirmed within 24 hours of the estimated ship date. Customer-requested cancellations are excluded.
- Additional tax
- An 18% goods and services tax is charged on Amazon’s cancellation fee.
- Amazon closing-fee increase
- From September 7, 2026, fees increase by Rs 1 for products priced up to Rs 500 and by Rs 3 for products priced above Rs 500 across Fulfilment Center, Easy Ship and Seller Flex channels.
- Flipkart penalties
- A missed Dispatch By Date incurs Rs 30; a seller cancellation or cancellation after three missed deadlines incurs Rs 60; a delayed order later cancelled incurs Rs 90.
- Flipkart seller exemption
- New sellers are exempt from the penalty policy for up to three months after beginning to sell.
- Amazon cancellation frequency
- Amazon said seller-initiated cancellations account for less than 1% of orders on Amazon.in.
Quotes
Amazon spokesperson
Representative of Amazon commenting on revised cancellation fees and seller protections
“We expect orders placed by customers to be fulfilled reliably by sellers on our marketplace. To encourage timely and dependable fulfilment, we have revised cancellation fees for Easy Ship and Self-Ship sellers. This fee is conditional and only applies in the rare event of a seller-initiated cancellation, which accounts for less than 1 per cent of orders on Amazon.in. We have appropriate measures in place to ensure sellers are protected when cancellations are due to circumstances beyond their 50”
NDTV
telegraphindia.com
freepressjournal.in
“Marketplaces must ensure transparent attribution of responsibility, reasonable and proportionate penalties, adequate advance notice of fee changes and a simple mechanism to challenge wrongful charges. The objective should be to improve fulfilment while making digital commerce more, not less, viable for small businesses.”
NDTV
telegraphindia.com
Sources
Amazon, Flipkart Revise Seller Fees, Penalties Ahead Of Festival Season
Amazon Updates Cancellation Charges, Flipkart Brings Penalties Before Festive Season
Amazon Modifies Cancellation Fees and Flipkart Adds Penalties Ahead of Festive Season
Amazon, Flipkart revise seller fees, penalties ahead of festive season - Telegraph India
Amazon, Flipkart Revise Seller Fees Ahead Of Festive Season; Check New Cancellation Charges
Amazon Defends Revised Seller Cancellation Fees, Says They Apply To Under 1% Of Orders
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