As the festive shopping season approaches, Amazon and Flipkart have introduced new charges and penalty rules for sellers.
The companies are preparing for the expected surge in online shopping and want to ensure faster and smoother order deliveries.
The new rules mainly affect sellers who cancel orders or fail to ship them on time.
Amazon Revises Cancellation and Closing Fees
Amazon has changed the cancellation fee for sellers using its Easy Ship and Self-Ship services.
Earlier, the fee was linked to the referral fee, but now it depends on the value of the order.
Easy Ship is Amazon’s service where sellers pack the order and Amazon handles the delivery. In Self-Ship, sellers arrange the delivery themselves.
From August 17, the cancellation fee will be:
10% for orders up to ₹10,000
8% for orders between ₹10,001 and ₹50,000
5% for orders between ₹50,001 and ₹1 lakh
2% for orders above ₹1 lakh
These charges apply when the seller cancels an order for reasons other than the buyer’s request.
The fee may also be charged if Amazon cancels an order because the seller fails to ship and confirm it within 24 hours of the estimated shipping date.
Amazon has also announced an increase in its closing fees from September 7, citing higher fuel and logistics costs.
The closing fee will increase by ₹1 for products priced up to ₹500 and by ₹3 for products priced above ₹500. The revised charges will apply across Amazon Fulfilment Centres, Easy Ship, and Seller Flex.
Flipkart Introduces New Penalty Rules
Flipkart has also updated its seller policy by introducing a new penalty system for sellers who have been on the platform for at least three months.
The penalties will be charged for every order based on the type of mistake made by the seller.
₹30 penalty: If the seller fails to hand over the order to Flipkart’s logistics partner before the Dispatch By Date (DBD).
₹60 penalty: If the seller cancels an order after accepting it.
₹90 penalty: If the seller both misses the Dispatch By Date and cancels the order.
The new system replaces Flipkart’s earlier policy, under which seller accounts could be locked for cancelling orders.
These changes are aimed at reducing order cancellations and improving delivery performance during the busy festive shopping season.
