Amazon, Flipkart Adjust Seller Fees and Penalties

Amazon and Flipkart, two of India's largest e-commerce platforms, have announced significant adjustments to their seller fees and penalties in anticipation of the busy festive shopping season.

Effective August 17, Amazon introduced a graded cancellation fee for sellers using its Easy Ship and Self Ship services. The fee is determined by the order value, ranging from 2% to 10%, plus an 18% GST. This charge applies to seller-initiated cancellations, excluding those requested by the buyer. It can also be applied if an order is automatically cancelled due to the seller failing to confirm and ship within 24 hours of the estimated shipping date.

Furthermore, Amazon will increase its closing fees starting September 7. The fee will rise by $1 for products priced up to $500 and by $3 for products above $500. These revised charges will affect sellers utilizing Amazon's fulfillment centers, Easy Ship, and Seller Flex. A company spokesperson stated that seller-initiated cancellations account for less than 1% of orders on Amazon India.

Meanwhile, Walmart-owned Flipkart implemented a new seller penalty structure on August 23. This policy replaces previous account-level restrictions with order-specific penalties. Sellers will face a $30 penalty for failing to hand over an order to Flipkart's logistics partner by the agreed dispatch-by date (DBD). The penalty increases to $60 if a seller cancels an order after replacing it, and to $90 if they miss the DBD and subsequently cancel.

These adjustments come as e-commerce marketplaces face intensifying competition from quick commerce platforms. Both companies have also expanded their zero-commission policies and reduced seller fees earlier this year to support their merchant base.