Now Reading: Amazon, Flipkart tighten seller penalties before festive season
-
01
Amazon, Flipkart tighten seller penalties before festive season
Amazon, Flipkart tighten seller penalties before festive season
Amazon and Flipkart have introduced new penalties for sellers who cancel orders or miss dispatch deadlines, effective August 17 and August 23 respectively, weeks ahead of the festive shopping season. Amazon’s graded cancellation fee ranges from 2% to 10% of order value, with an 18% GST on top, and applies to seller-fulfilled orders on Easy Ship and Self Ship. Flipkart’s penalties are simpler: Rs 30 for missing the dispatch-by date, Rs 60 for cancelling after receiving an order, and Rs 90 for missing the date and cancelling.
Both platforms have also announced fee cuts in recent months: Amazon waived referral fees on products below Rs 1,000 in March, and Flipkart extended zero commission to all fashion products in July. Inc42 reports Amazon’s spokesperson said seller-initiated cancellations are less than 1% of orders and safeguards exist for cancellations beyond a seller’s control. Medianama questions whether the penalties are negotiable, noting the CCI’s 2024 investigation found both platforms can terminate agreements with non-preferred sellers without cause.
Indian Opinion Analysis
Inc42 frames the penalties as a routine tightening of fulfilment rules, quoting Amazon’s assurance that seller cancellations are rare and safeguards exist. Medianama shifts the lens to seller risk: the percentage model hits high-value orders hardest, GST raises the real cost, and sellers have no negotiation or appeal route. The CCI’s earlier finding that platforms can terminate agreements without cause adds weight to Medianama’s concern, though Inc42 does not mention it. The key concrete fact to watch is whether seller associations or the CCI respond before the festive peak.
Coverage: 2 sources, 1 government-critical, 1 neutral
Sources (2): inc42.com (neutral report), medianama.com (government critical)
This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry. Methodology and corrections.
Updated: this story now draws on 2 sources.
