India e-commerce sellers face rising costs during festive season

E-commerce sellers in India are facing significant margin pressure heading into the festive season due to rising operational costs. Although major platforms like Amazon India and Flipkart have reduced commissions to attract sellers, these savings are being offset by increased cancellation penalties, platform fees, and logistics expenses.

Flipkart has implemented a penalty structure that charges flat fees of ₹30 for delayed dispatches and ₹60 for cancelled orders, a move that disproportionately affects small sellers and low-value items. Amazon India has introduced a tiered cancellation fee linked to order value, with charges ranging from 2% to 10% depending on the amount, plus an 18% GST.

Logistics costs are also climbing. Amazon has raised closing fees, and Delhivery has introduced surcharges on direct-to-consumer shipments. Additionally, the rise of quick commerce is increasing pressure through frequent, smaller shipments that demand more vehicles and distribution hub capacity. Sellers have reported difficulties in contesting these various charges.