Amazon & Flipkart’s new cancellation fees has made sellers unhappy
Amazon and Flipkart have introduced new, stricter cancellation fee structures for sellers in India ahead of the festival season. Sellers have expressed concern that these penalties, which are now calculated as a percentage of order value, will negatively impact small and medium enterprises.
Why it matters
These changes reflect the ongoing tension between major e-commerce platforms and the small business sellers who rely on them for market access.
Online commerce platforms Amazon and Flipkart have restructured cancellation fees ahead of the festival season in the country. According to a report by PTI, Amazon India has changed the manner in which it calculates order cancellation fees for sellers using its Easy Ship and Self Ship services. As per the notice on Amazon India’s seller forum, the change is effective from August 17. Similarly, Flipkart has also put in place a three-tier penalty structure for lapses in order fulfilment, effective August 23, 2026. The changes, sellers say, adds to the financial burden on small and medium enterprises already operating on thin margins, the report states.What is Amazon’s Easy Ship and Self Ship servicesUnder Self Ship, a seller on Amazon packs and delivers the product themselves, using their own courier or delivery service.
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