Amazon has introduced graded cancellation fees linked to order value and will raise closing fees, while Flipkart has rolled out penalties based on seller cancellations
With the festive season around the corner, ecommerce majors like Amazon and Flipkart are revising their fee structures for sellers for better delivery and a bigger share of customers’ shopping wallets.
Amazon has moved to a graded cancellation fee linked to the order value, with sellers facing charges ranging from 2 per cent to 10 per cent. The revised structure, which came into effect on August 17, applies to sellers using its Easy Ship and Self Ship services.
Sellers on Amazon, under the revised structure, are charged a cancellation fee based on the order value. Consequently, orders below ₹10,000 attract a 10 per cent fee, while orders valued between ₹10,001 and ₹50,000 incur an 8 per cent fee.
On the other hand, for orders between ₹50,001 and ₹1 lakh, the cancellation fee is 5 per cent, while orders above ₹1 lakh attract a 2 per cent fee. Additionally, an 18 per cent goods and services tax (GST) applies to the cancellation fee.
The fee applies when a seller cancels an order for reasons other than a buyer request. It is also levied when an order is automatically cancelled because the seller fails to ship and confirm it within 24 hours of the estimated ship date. Notably, buyer-initiated cancellations are excluded from the revised fee structure.
Beyond cancellation penalties, Amazon will also increase its closing fees for sellers starting September 7, 2026. The fee will increase by Re 1 for products priced up to ₹500 and by ₹3 for products priced above ₹500. The revised fees will apply to sellers using Amazon’s Fulfilment Centre (FC), Easy Ship, and Seller Flex models.
A closing fee is a fixed fee Amazon charges a seller for each item sold, separate from charges like referral fees, fulfilment fees, etc.
Flipkart’s new cancellation fee structure
Walmart-owned ecommerce platform Flipkart has also introduced a graded cancellation policy for sellers, effective from August 23, according to people aware of the development.
Under the new policy, sellers face a ₹30 penalty if they fail to hand over an order to Flipkart’s logistics partner by the agreed dispatch-by date (DBD). A ₹60 penalty applies when a seller cancels an order after receiving it from a customer. If a seller misses the DBD and subsequently cancels the order, the penalty rises to ₹90.
Disclaimer: Moneywealth research provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
SEBI registered research analyst
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