Amazon and Flipkart Raise Seller Fees Ahead of Festive Season

Major e-commerce platforms Amazon and Flipkart have revised their seller fee structures and introduced new penalties to ensure fulfillment reliability ahead of the festive shopping season. Effective August 17, Amazon shifted its cancellation fees for Easy Ship and Self-Ship sellers from category-based charges to a graded percentage of the order value, ranging from 2% for orders above ₹1 lakh to 10% for orders below ₹10,000, plus 18% GST.

Amazon is also increasing closing fees by ₹1 to ₹3 starting September 7, citing rising fuel and logistics costs. Simultaneously, Flipkart introduced a three-tier penalty system on August 23 for sellers active for at least three months. This system charges ₹30 for missed dispatch dates, ₹60 for order cancellations, and ₹90 for combined dispatch failures and cancellations.

The Forum for Internet Resellers, Sellers and Traders (FIRST INDIA) has criticized these changes, arguing they place an unfair financial burden on small and medium enterprises operating on thin margins. The group contends that sellers are being forced to act as financial shock absorbers for the ecosystem, especially when cancellations stem from logistics failures beyond their control.

Amazon maintains that seller-initiated cancellations account for less than 1% of orders on its Indian marketplace. The company stated it has measures in place to protect sellers when cancellations are due to circumstances beyond their control.