Amazon, Flipkart revise seller fees, penalties ahead of festive season Amazon and Flipkart have updated their fee and penalty structures for sellers on their platforms in anticipation of the festive shopping season, raising concerns among small and medium enterprises about increased costs and reduced profit margins. The changes, effective from August 17, 2026, for Amazon and August 23, 2026, for Flipkart, have sparked debates over the impact on sellers’ operations and the fairness of the new policies. Amazon India announced that it would revise its order cancellation fees for sellers using its Easy Ship and Self Ship services. Under the new system, cancellation fees will be calculated as a percentage of the order value rather than being tied to category-specific referral charges. For orders below Rs 10,000, sellers will face a 10 per cent fee, while orders between Rs 10,001 and Rs 50,000 will incur an 8 per cent charge. The rate drops to 5 per cent for orders between Rs 50,001 and Rs 1,00,000, and 2 per cent for orders exceeding Rs 1,00,000. An additional 18 per cent goods and services tax will apply to these fees. The revised structure applies to cancellations initiated by sellers for reasons other than a buyer’s request, as well as to orders automatically cancelled when a seller fails to ship and confirm delivery within 24 hours of the estimated ship date. Amazon also raised closing fees across its Fulfilment Center, Easy Ship, and Seller Flex channels, effective September 7, 2026. The fees, which vary by product price range, will increase by Rs 1 for items priced up to Rs 500 and by Rs 3 for products priced above Rs 500. Amazon cited higher fuel and logistics costs as the reason for the adjustments.#flipkart #amazon #vinod_kumar #festive_season #first_india
Amazon and Flipkart Raise Seller Fees and Penalties Ahead of Festival Season, ETRetail Amazon and Flipkart have implemented new fee and penalty structures for sellers on their platforms in the weeks leading up to the festive shopping season. The changes, effective from August 17, 2026, for Amazon and August 23, 2026, for Flipkart, include revised cancellation fees, increased closing fees, and tiered penalties for order fulfilment lapses. These adjustments have raised concerns among small and medium-sized businesses, which argue the changes exacerbate financial pressures on already thin profit margins. Under Amazon’s revised policy, sellers are now charged a percentage of the order value for cancellations, replacing the previous category-specific referral charges. For orders below Rs 10,000, the fee is 10 per cent of the order value, dropping to 8 per cent for orders between Rs 10,001 and Rs 50,000, 5 per cent for Rs 50,001 to Rs 1,00,000, and 2 per cent for orders exceeding Rs 1,00,000. An additional 18 per cent goods and services tax (GST) is applied to these fees. The policy applies to both seller-initiated cancellations and automatic cancellations due to delayed shipments, which occur when sellers fail to confirm delivery within 24 hours of the estimated ship date. Amazon also announced an increase in closing fees for products sold on its platform. The fee, which is based on the product’s price range, will rise by Rs 1 for items priced up to Rs 500 and by Rs 3 for products exceeding Rs 500. The company cited higher fuel and logistics costs as the reason for the adjustment. Amazon’s spokesperson emphasized that the revised cancellation fees are conditional and apply only in rare cases where sellers cancel orders, which account for less than 1 per cent of transactions on Amazon.in.#flipkart #amazon #vinod_kumar #festive_season #first_india
