Amazon and Flipkart just slapped new penalties on sellers for cancelled orders and missed dispatches, weeks before the festive sales surge. The fees reverse recent platform cuts to seller commissions, hitting margins when order volumes and cancellation risks are at their annual peak. Sellers of high-value goods, from electronics to appliances, will absorb the harshest blows.
How We Got Here
Amazon's new tiered cancellation fees took effect August 17; Flipkart's followed on August 23. The platforms publicised cuts to seller fees only a few months ago, a direct contrast to these new charges.
The Numbers
- Amazon charges a graded cancellation fee from 10% (for orders under Rs 10,000) down to 2% (for orders above Rs 1 lakh), plus 18% GST.
- Amazon's fee applies when a seller cancels, or when Amazon auto-cancels if dispatch isn't confirmed within 24 hours of the estimated ship date.
- Flipkart imposes Rs 30 for missing the dispatch date, Rs 60 for cancelling an order, and Rs 90 for both.
- Amazon will also raise closing fees by Rs 1 for items under Rs 500 and Rs 3 for items over Rs 500 from September 7.
What Happens Next
🇮🇳 Why This Matters for India
For the thousands of electronics and appliance sellers in Hyderabad and Pune, this policy means a single high-value stockout now carries a direct, substantial penalty.
The Take
This is a classic platform move: sweeten the deal then quietly introduce new costs right when volumes spike. The real losers are the smaller sellers of expensive items, forced to absorb risk without negotiation, while Amazon and Flipkart solidify their take.
Source:
MediaNama ↗