Why This Festive Season Is Getting More Expensive For Ecommerce Sellers
Consider a kurta priced at ₹799 sold directly on Flipkart by a fashion brand such as Globus Fashion. Since July,…
The upcoming festive season is becoming increasingly costly for ecommerce sellers due to a combination of factors. While sellers on platforms like Flipkart and Amazon may benefit from reduced commission fees, they now face significant penalties for delays or cancellations. On Flipkart, sellers are penalised ₹30 or 3.8% of the sale price if an order misses its dispatch-by date, with an additional ₹60 penalty if the order is subsequently cancelled.
Moreover, three missed deadlines are counted as a cancellation. Amazon’s new penalty structure, implemented in August, charges sellers 10%, 8%, 5% or 2% of the order value, depending on the price range, in addition to an 18% GST. This can result in substantial costs, particularly for sellers of electronics and appliances. Furthermore, increased production and fulfillment costs, such as raw material shortages and high fuel prices, contribute to the higher expenses for sellers.
Despite these additional costs, ecommerce sales are expected to reach $15–16 billion in 2026, a 25% increase from 2025.
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