Fees & Costs
Amazon India seller cancellation fees now scale with order value
Amazon India moved cancellation fees from a referral-linked rate to a straight percentage of order value, up to 10%, and closing fees rise from September 7. Flipkart added its own three-tier penalty structure.
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Aug 25, 2026 · 4 min read · 751 words
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Frequently Asked Questions
Common questions about this topic
- From August 17, 2026, the cancellation fee for Easy Ship and Self Ship orders is calculated as a percentage of order value instead of the earlier referral-fee-based structure: 10% below Rs 10,000, 8% from Rs 10,001 to Rs 50,000, 5% from Rs 50,001 to Rs 1,00,000 and 2% above Rs 1,00,000, plus 18% GST.
- It applies when a seller cancels an order for a reason other than a buyer request, and when Amazon cancels an order because the seller did not ship and confirm within 24 hours of the estimated ship date.
- Amazon India said closing fees rise from September 7, 2026, citing higher fuel and logistics costs. The increase is Rs 1 for products priced up to Rs 500 and Rs 3 for products above Rs 500, across Fulfilment Centre, Easy Ship and Seller Flex.
- Yes. Flipkart introduced a three-tier penalty structure for order fulfilment lapses, effective August 23, 2026.
- Directly, no. These are Amazon.in and Flipkart programme changes. Indirectly it is a reminder that fee structures move per marketplace, so a global average margin hides what is actually happening in each one.
Verified Sources
All information verified from official Amazon sources and trusted industry analysts as of publication date.