Now Reading: Amazon, Flipkart revise seller fees and penalties ahead of festive season
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Amazon, Flipkart revise seller fees and penalties ahead of festive season
Amazon, Flipkart revise seller fees and penalties ahead of festive season
Amazon and Flipkart have revised their seller fees and penalties ahead of the festive shopping season. Amazon introduced graded cancellation fees for seller-initiated cancellations, ranging from 2% to 10% depending on order…
Amazon and Flipkart have revised their seller fees and penalties ahead of the festive shopping season. Amazon introduced graded cancellation fees for seller-initiated cancellations, ranging from 2% to 10% depending on order value. Flipkart replaced account-level restrictions with order-specific penalties of Rs 30 to Rs 90 for missed dispatch deadlines and cancellations. The changes apply from August 17 for Amazon and August 23 for Flipkart.
The revised fees are part of efforts to tighten fulfilment rules even as the platforms selectively reduce other costs. Amazon will also increase closing fees from September 7 by Rs 1 to Rs 3 per product. Flipkart expanded its zero-commission policy to all fashion products earlier this year. The moves come as ecommerce marketplaces face growing competition from quick commerce platforms expanding beyond groceries.
Indian Opinion Analysis
The changes reflect a broader shift in marketplace economics: platforms are lowering entry barriers with zero-commission schemes while raising penalties for operational failures. This two-pronged approach aims to improve delivery reliability during the high-volume festive quarter without scaring off smaller sellers. Amazon's cancellation fee structure, with a 10% charge on orders below Rs 10,000, disproportionately hits low-value transactions common among small sellers. Flipkart's shift from account suspension to per-order fines is a notable deterrent redesign. The real test for both platforms will be whether sellers absorb these costs or pass them on to consumers, potentially dampening the price advantage that drove festive sales growth in recent years. The next quarterly marketplace reports will show whether seller attrition rises or fulfilment metrics improve.
Under the ecommerce marketplace guidelines issued by the Department for Promotion of Industry and Internal Trade in 2018, platforms are not allowed to directly or indirectly influence the sale price of goods.
Source: inc42.com
This brief was synthesised by AI from the source linked above.
