E-commerce Giants Crack Down on Sellers with New Penalties
Amazon and Flipkart have implemented new policies to penalize marketplace sellers ahead of the festive season. The changes are aimed at reducing cancellations and increasing efficiency in logistics and order fulfillment.
Amazon has revised its cancellation fees for Easy Ship and Self-Ship services, linking them to the value of the order instead of referral fees. Effective August 17, sellers will face penalties ranging from 10% to 2% of the order value for cancellations not requested by buyers. The charge also applies when Amazon cancels an order due to a seller's failure to ship and confirm within 24 hours.
Additionally, Amazon is increasing its closing fees starting September 7, citing higher fuel and logistics costs. The fee increase will be ₹1 for products up to ₹500 and ₹3 for products above ₹500 across Fulfilment Centre, Easy Ship, and Seller Flex channels.
Flipkart has introduced a new per-order penalty structure for sellers with at least three months of experience on the platform. Sellers will face penalties ranging from ₹30 to ₹90 depending on the nature of the order failure, including missing dispatch-by dates or cancelling orders after receiving them from customers.