Amazon and Flipkart raise seller cancellation fees ahead of festive season

Amazon India announced that, from August 17, cancellation fees for sellers using Easy Ship and Self Ship will be based on order value, with percentages of 10% for orders under Rs 10,000, 8% for Rs 10,001-Rs 50,000, 5% for Rs 50,001-Rs 1,00,000 and 2% for amounts above Rs 1,00,000, plus an 18% GST surcharge. The platform will also raise closing fees across its fulfillment channels on September 7, citing higher fuel and logistics costs.

Flipkart introduced a three-tier penalty system effective August 23, charging Rs 30 per shipment for missed dispatch dates, Rs 60 for seller-initiated or automatic cancellations after three missed deadlines, and Rs 90 for delayed orders that are later cancelled. New sellers receive a three-month exemption. Vendors claim the penalties, sometimes triggered by factors beyond their control, threaten the viability of small and medium enterprises operating on narrow margins. Vinod Kumar of the Forum for Internet Resellers, Sellers and Traders (FIRST INDIA) warned that such measures could make digital commerce less sustainable for MSMEs.