The festive shopping season is approaching, and Amazon and Flipkart have introduced important changes to their seller fee and penalty structures. The new rules are aimed at improving order fulfilment and reducing cancellations and dispatch delays, but they could also increase costs for sellers operating on tight 's request. It can also apply if an order is automatically cancelled because the seller fails to ship and confirm it within the specified time. Buyer-requested cancellations are excluded.

Amazon Is Also Increasing Closing Fees

Amazon is making another fee change from September 7, 2026.

Closing fees will increase by ₹1 for products priced up to ₹500 and by ₹3 for products priced above ₹500. The revised charges will apply to sellers using Amazon's Fulfilment Centre, Easy Ship and Seller Flex services.

A closing fee is charged when a product is sold and is separate from other charges such as referral and fulfilment fees.

Flipkart Introduces a Three-Tier Penalty System

Flipkart has taken a different approach. Its new penalty structure came into effect on August 23, 2026, with penalties linked to dispatch delays and cancellations.

Under the new system:

• ₹30: Order not made ready for pickup by the committed Dispatch By Date

• ₹60: Seller cancels an order after receiving it

• ₹90: Order is delayed and subsequently cancelled

The earlier system could result in a seller's account being locked following a dispatch-by-date breach. The new structure replaces that approach with monetary penalties, while new Flipkart sellers in their first three months are reportedly excluded from the policy.

Why Are the Changes Important Before the Festive Season?

The timing is significant because India's festive period is one of the busiest times of the year for online shopping. Sellers typically see a sharp increase in orders, making efficient inventory management, packaging and dispatch especially important.

For marketplaces, reducing cancellations and delays can help improve customer experience during periods of exceptionally high order volumes.

However, seller groups have raised concerns that higher charges could put additional pressure on small and medium-sized businesses that already operate with relatively thin 's latest changes show that India's e-commerce platforms are placing greater emphasis on reliable seller fulfilment as competition intensifies.

For sellers, the festive season could bring significant sales opportunities—but the cost of poor inventory planning, delayed dispatches and avoidable cancellations is also becoming more clearly defined.

The key challenge will be finding a balance between better customer service and sustainable seller economics, particularly for smaller businesses competing during India's biggest online shopping season.