Amazon and Flipkart Fee Revisions: Impact on Sellers in 2026

30 SEC SUMMARY

In 2026, Amazon and Flipkart have introduced new fee structures for sellers, effective August and September respectively. These changes, aimed at improving order fulfilment, have raised concerns among small and medium enterprises about increased financial burdens.

TABLE OF CONTENTS

1. Introduction
2. Amazon's Fee Revisions
3. Flipkart's Penalty Structure
4. Impact on Small and Medium Enterprises
5. Industry Expert Opinion
6. FAQs
7. Conclusion
8. Call-to-Action

KEY HIGHLIGHTS

• Amazon revises cancellation fees based on order value.
• Flipkart introduces a three-tier penalty structure for order fulfilment lapses.
• Concerns raised about the impact on small and medium enterprises.
• Industry calls for transparent responsibility attribution and reasonable penalties.

Introduction

As the festive shopping season approaches, major ecommerce platforms Amazon and Flipkart have announced significant changes to their fee and penalty structures for sellers. These revisions are intended to enhance order fulfilment and customer satisfaction but have sparked concerns among sellers, particularly small and medium enterprises (SMEs), who are already operating on thin margins.

Amazon's Fee Revisions

Amazon India has updated its cancellation fee structure for sellers using its Easy Ship and Self Ship services, effective August 17, 2026. The new fee is calculated as a percentage of the order value, with additional goods and services tax (GST):

Order Value Range	Cancellation Fee	GST	Total Fee
Below Rs 10,000	10%	18%	11.8%
Rs 10,001 - Rs 50,000	8%	18%	9.36%
Rs 50,001 - Rs 1,00,000	5%	18%	6.9%
Above Rs 1,00,000	2%	18%	3.6%

Additionally, Amazon will increase closing fees across its Fulfilment Center, Easy Ship, and Seller Flex channels starting September 7, 2026. The fee will rise by Rs 1 for products priced up to Rs 500 and by Rs 3 for products priced above Rs 500.

Flipkart's Penalty Structure

Flipkart has implemented a three-tier penalty structure for order-fulfilment lapses, effective August 23, 2026. The penalties are as follows:

Order-Fulfilment Lapse	Penalty
Shipment not ready by DBD	Rs 30
Order cancelled by seller or auto-cancelled after three missed DBDs	Rs 60
Delayed and subsequently cancelled order	Rs 90

New sellers on Flipkart, up to three months into their selling journey, will not be impacted by this policy.

Impact on Small and Medium Enterprises

The changes have raised concerns among SMEs, who argue that not all cancellations or delays are within their control. Factors such as logistics failures, platform issues, demand spikes, and customer-related factors can also cause cancellations or delays.

Industry Expert Opinion

Vinod Kumar, Trustee of the Forum for Internet Resellers, Sellers and Traders (FIRST INDIA), emphasized the need for timely fulfilment and high customer service standards. However, he expressed concern about the recent increases in cancellation, dispatch, and other seller penalties by major ecommerce marketplaces, especially ahead of the festive season. Kumar stated:

"Sellers should not become the default financial shock absorbers of the e-commerce ecosystem. Marketplaces must ensure transparent attribution of responsibility, reasonable and proportionate penalties, adequate advance notice of fee changes, and a simple mechanism to challenge wrongful charges. The objective should be to improve fulfilment while making digital commerce more, not less, viable for small businesses."

FAQs

What are the new cancellation fees for Amazon sellers?

Amazon has revised its cancellation fees based on order value, with additional GST.

How does Flipkart's new penalty structure work?

Flipkart has introduced a three-tier penalty system for order-fulfilment lapses, with fines ranging from Rs 30 to Rs 90 per shipment.

What impact do these changes have on small and medium enterprises?

The changes add financial burdens to SMEs, who argue that not all cancellations or delays are within their control.

Conclusion

The fee revisions by Amazon and Flipkart aim to improve order fulfilment and customer satisfaction. However, the increased financial burden on small and medium enterprises has raised significant concerns. It is crucial for ecommerce platforms to ensure transparent responsibility attribution, reasonable penalties, and adequate support for sellers.

Call-to-Action

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