Netizens! Be Ready To Cough Up More On Your Flipkart And Amazon Orders
Ahead of the festive season, Amazon and Flipkart have hiked seller fees, including cancellation, closing, and shipping penalties. Rising logistics costs and quick-commerce competition are driving these updates, which may ultimately lead to higher prices for online shoppers.
- Republic Business
- 3 min read
Your next Amazon or Flipkart order might cost you more as Amazon and Flipkart have hiked seller fees ahead of the peak festive season.
As India gears up for festive shopping, e-commerce giants Amazon India and Flipkart are locking horns in a battle for marketplace dominance.
Behind flashy sales and consumer discounts lies a hidden cost that comes in the form of a seller fee. Both the e-tailer giants have hiked the seller fee.
A breakdown of what is changing and why it matters
Commission Hikes & Revised Fee Schedules
Amazon has raised the cancellation fee for its services such as Easy Ship and Self Ship. Now, the revised charges have been linked to the value of the order than the earlier referral-fee-based structure.
In fact, the company offers two delivery models: Easy Ship, where sellers prepare orders for Amazon to deliver, and Self-Ship, where sellers manage the delivery process themselves. Earlier, the company had brought in a cancellation fee structure on August 17 based on the order value.
As reviewed by the Republic Business, Amazon’s website mentions the cancellation fee is set at 10 percent for orders below Rs 10,000, 8 percent for orders valued between ₹10,001 and ₹50,000, 5 percent for those between ₹50,001 and ₹1 lakh, and 2 percent for orders exceeding Rs 1 lakh.
The fee kicks in whenever a seller cancels an order for reasons other than a direct request from the buyer. The fee will be also applicable in case the seller fails to ship the product and confirm dispatch within 24 hours of the estimated shipping date.
Additionally, citing rising fuel and logistics costs, the company has increased its closing fees across all fulfillment channels starting September 7. This raises the closing fee by Rs 1 for products priced up to Rs 500, and by Rs 3 for products priced above Rs 500.
Flipkart introduces New Set Of Penalties
Under the updated policy, sellers face a Rs 30 penalty if they fail to hand over an order to Flipkart’s logistics partner by the agreed dispatch-by date (DBD). Canceling an order after receiving it from a customer can invite a Rs 60 penalty. The fee charge could escalate to Rs 90 if the seller misses both the dispatch-by date and cancels the fulfillment.
The new financial penalty system promises to check the unilateral cancellations by the sellers.
What’s interesting is that the fee hike comes at a time when the government is discussing charging merchants on UPI transactions above Rs 2,000.
As reported by the Republic Business earlier, merchants may soon bear a Merchant Discount Rate (MDR) on UPI transactions, introducing an extra payment cost whose ultimate impact will depend on the final rate structure and how expenses are split with platforms.
Quick Commerce Gaining Fast Ground
The policy updates arrive as traditional e-tailer giants feel the heat from quick-commerce rivals, which are rapidly snapping up everyday shopping occasions.
To stay competitive ahead of the festive rush, the traditional e-tailers have used the fee hike route to maximise revenue on existing orders.
Published By : Prakarsh Patole
Published On: 24 August 2026 at 17:06 IST