Flipkart and Amazon Sellers Face Stricter Penalties and Rising Festive Costs

27 Oct 2026, 5:21 pm · 2h ago · 1 min read · Inc42New

Online sellers on e-commerce platforms like Flipkart and Amazon are facing squeezed margins this festive season due to new penalty structures and rising fulfillment costs. Under Flipkart's policy effective August 23, sellers face a ₹30 penalty for missing dispatch deadlines and an additional ₹60 if an order is cancelled, placing a disproportionate burden on low-value items. Beyond marketplace penalties and surcharges, sellers are also navigating higher production expenses caused by raw material shortages and rising fuel prices. These compounding operational costs are hitting third-party sellers particularly hard despite peak festive shopping demand across Indian e-commerce.