Amazon and Flipkart are changing their seller fee structures ahead of the festive shopping season as ecommerce platforms seek to improve order fulfilment and ensure timely deliveries during the period of heightened consumer demand.
Amazon has introduced a graded cancellation fee for sellers using its Easy Ship and Self Ship services. Effective August 17, the charge depends on the value of the cancelled order and ranges between 2% and 10%.
Orders valued below ₹10,000 attract a 10% cancellation fee, while those between ₹10,001 and ₹50,000 carry an 8% charge. The fee falls to 5% for orders between ₹50,001 and ₹1 lakh and to 2% for orders above ₹1 lakh. An 18% GST is applicable on these charges.
The fee applies when sellers cancel orders for reasons unrelated to the customer. It can also be imposed when sellers fail to dispatch and confirm an order within 24 hours of the estimated shipping date. Customer-requested cancellations are excluded.
Amazon will also raise its closing fee from September 7. The charge will increase by ₹1 for products priced up to ₹500 and by ₹3 for products above ₹500.
Flipkart adds penalties for missed dispatches
Walmart-owned Flipkart has also introduced a graded penalty system for sellers, effective August 23.
Sellers who fail to hand over an order to Flipkart's logistics partner by the specified dispatch-by date will face a ₹30 penalty. Cancelling an order after receiving it will attract a ₹60 charge, while missing the dispatch deadline and subsequently cancelling the order will result in a ₹90 penalty.
Amazon said the revised charges are intended to encourage reliable fulfilment while noting that seller-initiated cancellations account for less than 1% of orders on Amazon.in.
