Amazon and Flipkart have introduced new penalties for sellers who cancel orders or miss dispatch deadlines, just weeks before the peak festive sale period. Amazon's graded cancellation fee started on August 17, while Flipkart implemented its penalty system on August 23, according to medianama.com. These measures come after both platforms announced reductions in seller fees earlier this year.
Amazon's cancellation fee applies to sellers using Easy Ship and Self Ship, where sellers handle storage and packing themselves. The fee is tiered by order value: 10% for orders below Rs 10,000, 8% for Rs 10,001 to Rs 50,000, 5% for Rs 50,001 to Rs 1 lakh, and 2% for orders above Rs 1 lakh, with an 18% GST added. The fee is charged when sellers cancel orders for reasons other than buyer requests or when Amazon auto-cancels due to missed shipping confirmation within 24 hours of the estimated ship date. Buyer cancellations are exempt. Flipkart's penalty details were also introduced on August 23, targeting seller cancellations and missed dispatches.
These penalties come at a critical time when order volumes and cancellation risks are at their highest, ahead of the festive season. The move follows earlier fee cuts by both platforms, aiming to balance seller incentives with customer experience. Amazon will also increase its closing fees from September 7, adding Rs 1 for items priced up to Rs 500 and Rs 3 for items priced above Rs 500. This adjustment affects the flat charge sellers pay per item sold, separate from commissions and delivery fees.
Amazon's cancellation fee structure took effect on August 17, while Flipkart's penalties started on August 23, as reported by medianama.com. Amazon's closing fee increase is scheduled for September 7, marking a significant shift in seller cost structures during the high-demand festive period.