The festive shopping season is approaching, and online marketplaces are preparing for a major increase in orders. With millions of customers expected to shop during upcoming sales, Amazon and Flipkart have introduced changes to certain seller cancellation and dispatch policies.

The new rules are aimed at reducing avoidable cancellations and delays, but they also mean sellers could face additional charges if they fail to process orders within the specified timelines.

Amazon Introduces a New Cancellation Fee Structure

Amazon has revised its cancellation fee structure for sellers using Easy Ship and Self Ship services. The new system came into effect on August 17.

Under the revised structure, the cancellation fee is linked to the value of the cancelled order rather than being calculated using the earlier referral-fee-based method.

The reported fee structure is:

• Orders below ₹10,000: 10%

• ₹10,001 to ₹50,000: 8%

• ₹50,001 to ₹1 lakh: 5%

• Above ₹1 lakh: 2%

This means sellers dealing in expensive products could still face significant charges if an order is cancelled.

Delayed Dispatch Can Also Lead to Charges

Sellers need to pay attention not only to cancellations but also to dispatch deadlines.

If a seller fails to dispatch an order within the specified timeframe and does not confirm dispatch within the additional period allowed by Amazon, the platform may cancel the order and apply the relevant fee.

For sellers handling high-value products, even a small number of avoidable cancellations could therefore have a noticeable financial impact.

Flipkart Has Its Own Penalty Structure

Flipkart has introduced a different system for sellers who fail to meet dispatch commitments.

According to the reported rules:

• ₹30: If the seller fails to hand over the order to Flipkart's logistics partner by the scheduled dispatch date.

• ₹60: If the seller cancels an order after receiving it from the customer.

• ₹90: If the seller cancels an order after missing the dispatch deadline.

The penalties are intended to encourage sellers to maintain accurate inventory and fulfil orders within the promised timeframe.

How Could Customers Benefit?

The stricter policies could indirectly benefit customers, particularly during major festive sales when demand rises sharply.

Sellers may have a greater incentive to keep their inventory information updated and avoid accepting orders for products that are unavailable. This could reduce situations where customers place an order only to receive a cancellation message later.

Better adherence to dispatch timelines could also help improve the overall shopping experience during high-demand sales.

Sellers Need to Be More Careful During Festive Sales

The festive season can bring a huge increase in orders, making inventory management and timely dispatch especially important for online sellers.

With cancellation and delay-related charges now playing a bigger role, sellers will need to monitor stock levels closely, process orders on time and ensure that dispatch information is updated correctly.

For customers, the biggest potential benefit could be fewer unexpected cancellations and more reliable order fulfilment during the busy festive shopping period.