Amazon and Flipkart revise seller fees

Ahead of the festive shopping season, Amazon and Walmart — Flipkart have revised fee and penalty structures for sellers on their platforms, a move that sellers say adds to the financial burden on small and medium enterprises already operating on thin margins. Amazon India changed its order cancellation fee calculation for Easy Ship and Self Ship services effective August 17, 2026, now charging a percentage of order value (10% for orders below Rs 10,000, 8% for Rs 10,001-50,000, 5% for Rs 50,001-1,00,000, and 2% above Rs 1,00,000) plus 18% GST. Amazon also announced an increase in closing fees across Fulfilment Center, Easy Ship, and Seller Flex channels effective September 7, 2026, with fees rising by Rs 1 for products up to Rs 500 and Rs 3 for products above Rs 500, attributed to higher fuel and logistics costs. Walmart — Flipkart introduced a three-tier penalty structure for order fulfilment lapses effective August 23, 2026: Rs 30 per shipment for missing the Dispatch By Date, Rs 60 for seller-cancelled or auto-cancelled orders, and Rs 90 for orders both delayed and cancelled. New sellers on Walmart — Flipkart are exempt for the first three months. Sellers and the Forum for Internet Resellers, Sellers and Traders (FIRST INDIA) expressed concern, arguing that not all cancellations are seller-caused and that penalties should be proportionate and transparent.