Amazon and Flipkart tighten seller penalties ahead of festive sales
Amazon India will charge cancellation fees of up to 10%, plus GST, and raise select closing fees from September 7. Flipkart has introduced penalties for missed dispatch deadlines and seller cancellations, increasing fulfilment and inventory-risk pressure on marketplace merchants.
What happened
Amazon India and Flipkart introduced seller penalties for cancellations and missed dispatch deadlines before festive sales. Amazon also raises closing fees from
Key facts
- Amazon cancellation fee: 10% below Rs 10,000; 8% for Rs 10,001-Rs 50,000; 5% for Rs 50,001-Rs 1 lakh; 2% above Rs 1 lakh
- 18% GST applies to Amazon cancellation fees
- Amazon closing fees increase Rs 1 for items up to Rs 500 and Rs 3 above Rs 500 from September 7
- Flipkart penalties: Rs 30 for dispatch deadline miss, Rs 60 for post-order cancellation, Rs 90 for both
- Amazon policy effective August 17; Flipkart policy effective August 23
- Seller-initiated cancellations are less than 1% of Amazon.in orders
Why this matters
Commerce enablers offering inventory synchronization, order management, fulfilment and seller financing could see stronger demand as merchants seek to reduce cancellation and dispatch-related exposure.