Amazon will raise its closure fee from September 7, while changes by both platforms have raised concerns among small and medium-sized sellers.
Amazon and Flipkart have revised seller fees and penalties ahead of India’s festive shopping season, adding to concerns among small and medium-sized sellers already dealing with rising operating costs.
Amazon India has changed how certain fees are calculated for sellers using its Easy Ship and Self Ship services, while Flipkart has introduced a three-tier penalty structure for order fulfilment failures.
The changes come just weeks before the peak festive shopping period, when sellers typically see a significant increase in order volumes.
Amazon changes fee structure.
Amazon India announced on its seller forum that, from August 17, 2026, the way fees are calculated for sellers using Easy Ship and Self Ship has changed.
Under Easy Ship, sellers store and pack their products before handing completed orders to Amazon’s delivery personnel for collection and delivery.
Self Ship, meanwhile, allows sellers to handle their own packaging and delivery through their chosen courier or logistics provider.
Under the revised structure, the fee is now linked to the order value rather than category-specific referral charges.
For orders below Rs 10,000, sellers will be charged 10% of the order value. Orders between Rs 10,000 and Rs 50,000 will attract an 8% charge.
For higher-value orders, the structure includes a 5% charge for sales between Rs 50,001 and Rs 100,000 and 2% for orders above Rs 100,000. An additional 18% GST applies to these charges.
Amazon’s cancellation fee can also apply when sellers fail to confirm shipment within 24 hours of the expected ship date, as well as in certain automated cancellation situations.
Amazon to raise closure fee.s
Amazon has also announced an increase in closing fees from September 7, 2026, across its Fulfilment Center, Easy Ship and Seller Flex channels.
For products priced up to Rs 500, the closing fee will increase by Rs 1.
For products priced above Rs 500, the increase will be Rs 3.
Amazon has attributed the change to rising fuel and logistics costs.
The company charges a closing fee when products are sold, with the amount varying depending on the fulfilment method used by the seller.
Sellers question cancellation penalties
Some Amazon sellers have raised concerns about cancellation fees, particularly when an order fails because of circumstances outside the seller’s control.
Sellers on Amazon’s forum said delivery or pickup failures can sometimes occur because collection personnel do not arrive as scheduled. They questioned why sellers should face a cancellation charge in such situations.
One seller also claimed that the fee difference between Easy Ship and Amazon’s fulfilment network could reach Rs 45 per unit for comparable orders, raising concerns about the cost gap between fulfilment options.
Flipkart introduces a three-tier penalty system.
Flipkart has also changed its seller penalty structure.
From August 23, 2026, sellers face a three-tier system for order fulfilment failures.
- Rs 30 per shipment if an order is not ready for pickup by the stipulated Dispatch By Date.
- Rs 60 per shipment if an order is cancelled by the seller or automatically after three missed dispatch dates.
- Rs 90 per shipment if an order is delayed and subsequently cancelled.
The structure increases the financial consequence as fulfilment problems continue or ultimately result in cancellation.
Why the timing matters
The changes come ahead of India’s festive shopping season, traditionally one of the most important periods for online sellers.
Higher order volumes can create opportunities for businesses to increase sales, but they can also amplify the impact of fulfilment delays, cancellations and marketplace fees.
For small and medium-sized sellers, even relatively small increases in per-order costs can have a meaningful impact on margins when applied across thousands of festive-season shipments.
With both Amazon and Flipkart tightening or revising seller economics at the same time, sellers are now facing a more complicated calculation around pricing, fulfilment and inventory management just as festive demand begins to build.
