Amazon, Flipkart tighten seller fee structures for festive season

Amazon has introduced a graded cancellation fee system that links charges to order values, while simultaneously raising its closing fees across categories. The move represents a significant shift in the company's fee structure as it heads into the high-volume festive season, when order cancellations typically spike among sellers managing inventory pressures.

Flipkart has separately rolled out a penalty-based system specifically targeting seller cancellations, implementing charges that escalate based on cancellation frequency and patterns. The revised structure incentivizes sellers to honor orders and maintain higher fulfillment rates during the critical October-November shopping period.

Both platforms cited the need to improve order fulfillment reliability and reduce cancellation rates that can disrupt the customer experience. The fee adjustments apply across various seller categories, though the exact quantum of charges varies based on product segments and historical seller performance metrics.

Industry observers note that such structural changes are common in the run-up to major shopping festivals, when marketplace operators seek to balance seller participation with consumer satisfaction. The timing of these revisions reflects intensifying competition between the two e-commerce majors during India's most lucrative retail season.