Amazon, Flipkart Tighten Seller Rules Ahead of Festive Season

Amazon and Flipkart, India's leading e-commerce platforms, are tightening their rules and increasing charges for sellers in anticipation of the upcoming festive season. The moves are designed to shift more operational risk onto sellers and enhance delivery performance.

Amazon has introduced a graded cancellation fee for its Easy Ship and Self Ship services, raising the charge from 2% to up to 10% based on order value. This policy targets seller-initiated and unconfirmed cancellations. Additionally, Amazon is increasing closing fees by ₹1 to ₹3 across fulfillment channels to enforce greater merchant discipline as festive volumes ramp up.

Flipkart, owned by Walmart, has implemented a three-tier penalty system for operational lapses without locking seller accounts. Sellers missing dispatch deadlines will face a ₹30 fine, while delayed cancellations incur a ₹90 penalty. Flipkart aims to improve dispatch compliance while keeping vendor storefronts operational.

These stricter penalties mean sellers will likely face sharper consequences for cancellations and delays. For merchants operating on thin margins, the impact could be significant during the festive season, when higher volumes can amplify small per-unit cost increases. This comes as quick commerce platforms expand into new categories, increasing pressure on marketplaces for faster, reliable delivery.

The effectiveness of these policies in improving fulfillment versus increasing seller anxiety remains to be seen. Accurate inventory, faster dispatch, and better planning could shield sellers, but marketplace errors and logistics failures could complicate accountability.