Amazon, Flipkart Raise Seller Fees Ahead of Festive Season

Amazon and Flipkart have introduced new fee and penalty structures for sellers on their platforms in the weeks leading up to India's festive shopping season, a move that adds to the financial pressures faced by small and medium-sized enterprises already operating on thin margins. The changes, which took effect in mid-August, are aimed at improving order fulfillment and customer experience but have raised concerns among sellers about rising costs during a critical sales period.

Amazon India revised its cancellation fee structure for sellers using its Easy Ship and Self Ship services, effective August 17, 2026. The fee, previously based on category-specific referral charges, is now calculated as a percentage of the order value. Sellers are charged 10 percent for orders below Rs 10,000, 8 percent for orders between Rs 10,001 and Rs 50,000, 5 percent for orders between Rs 50,001 and Rs 1,00,000, and 2 percent for orders above Rs 1,00,000, with an additional 18 percent goods and services tax. This fee applies when a seller cancels an order for reasons other than a buyer's request, or when an order is automatically cancelled because the seller fails to ship and confirm it within 24...