Policy · Commerce & Consumer Brands

Amazon and Flipkart revise seller fees and penalties

By Startup Enthusiast · 25 August 2026

What they do

Amazon introduced graded cancellation fees for sellers, effective August 17, with rates from 2% to 10% based on order value, plus 18% GST

Flipkart introduced a new seller penalty structure on August 23, with fines of ₹30, ₹60, or ₹90 for missed dispatch or cancellations

The changes come as quick commerce platforms expand beyond groceries, increasing competition for ecommerce marketplaces

Amazon and Flipkart revised seller fees and penalties ahead of the festive season.
Amazon introduced a graded cancellation fee for Easy Ship and Self Ship sellers, effective August 17.
The cancellation fee is 10% on orders below ₹10,000, 8% on ₹10,001-₹50,000, 5% on ₹50,001-₹1 Lakh, and 2% above ₹1 Lakh.
The cancellation fee is subject to 18% GST.
It applies to seller-initiated cancellations, not buyer-requested ones.
It may also apply when an order is auto-cancelled because the seller failed to ship within 24 hours of the estimated shipping date.
Amazon will increase closing fees from September 7 by ₹1 for products up to ₹500 and ₹3 for products above ₹500.
Flipkart introduced a new seller penalty structure on August 23, replacing account-level restrictions with order-specific penalties.

Amazon's spokesperson said seller-initiated cancellations account for less than 1% of orders on Amazon India.
Flipkart's new penalties apply to sellers on the platform for at least three months.
Flipkart expanded its zero-commission policy to all fashion products earlier this year, covering around 90,000 transacting sellers.
Amazon expanded its zero-referral-fee programme in March to products below ₹1,000 across over 1,800 categories.
These changes come as ecommerce marketplaces face growing competition from quick commerce platforms expanding beyond groceries.

Amazon and Flipkart are ecommerce marketplaces that connect sellers with buyers.
They offer services like Easy Ship, Self Ship, Fulfilment Centre, and Seller Flex.
They generate revenue through fees such as closing fees, referral fees, and cancellation fees.
They operate in India and compete with other ecommerce and quick commerce platforms.