Amazon and Flipkart Seller Fee Changes for Festive 2026

Both marketplaces changed how they charge sellers for cancellations and late dispatch just before the festive season. This is a summary of what has been reported; confirm your own numbers in your seller dashboard.

Amazon India

• Cancellation fee, from 17 Aug 2026 (Easy Ship and Self Ship sellers). The fee is now a percentage of order value instead of being based on the referral fee: 10% for orders up to ₹10,000, 8% for ₹10,001–₹50,000, 5% for ₹50,001–₹1,00,000 and 2% above ₹1,00,000, plus 18% GST.

• When it applies. Any seller-initiated cancellation, and orders auto-cancelled because they were not shipped and confirmed within 24 hours of the estimated ship date. Buyer-requested cancellations are excluded.

• Closing fees, from 7 Sept 2026. Reported as up ₹1 for items priced up to ₹500 and ₹3 for items above ₹500.

• Referral fees are separate. Since 16 March 2026 Amazon charges zero referral fee on products priced under ₹1,000 (reported by Amazon as 12.5 crore products across 1,800+ categories). A "reduced selling fees from 9 September" banner on Amazon's seller site refers to Amazon's 2024 announcement, not a new 2026 cut.

Flipkart

• Penalties, from 23 Aug 2026. Reported as ₹30 per shipment for delayed dispatch, ₹60 for seller or auto-cancellations, and ₹90 where both apply. New sellers reportedly get a three-month grace period.
• Seller bodies have objected that not every delay or cancellation is the seller's fault.

Why it matters now

Flipkart's Big Billion Days starts on 9 Oct (early access 8 Oct). Festive volumes raise cancellation risk: a stockout on a ₹2,000 order now costs Amazon Easy Ship sellers about ₹200 plus GST on top of the lost sale.

What to check

1. Stock sync. Overselling is the most common cause of seller-side cancellations.
2. Ship-by dates. Confirm handling time so orders don't auto-cancel at the 24-hour mark.
3. Unit economics. Re-run your festive prices through the marketplace profit calculator and use the new "Seller-cancelled orders" slider to add expected cancellation and penalty costs.
4. Your own fee page. Rates can differ by category and fulfilment method.

For working out how to sell on more than one platform, see selling on multiple marketplaces. For the full prep list, see the festive season selling guide.

Sources: Amazon Seller Central announcement (cancellation fees); Outlook Business (closing fees and Flipkart penalties, reported); Business Today (sale dates); Amazon India, March 2026 fee reduction; Amazon India press release, 24 Aug 2024.