Flipkart and Amazon Hike Fees and Penalties, Squeezing Festive Seller Margins

28 Oct 2026, 8:00 am · 2h ago · 1 min read · Inc42New

Indian ecommerce sellers are facing squeezed profit margins during the festive season due to increased cancellation penalties, platform charges, and rising logistics expenses. Despite promotional commission cuts, Flipkart has introduced fixed penalties of ₹30 for dispatch delays and ₹60 for order cancellations, heavily impacting low-value orders. Amazon India has also linked cancellation fees to order value, charging penalties between 2% and 10% plus GST. Additionally, rising fulfillment costs, closing fees, and logistics surcharges from Delhivery and quick commerce competition are increasing operating pressure on digital merchants and direct-to-consumer brands across India.