In preparation for the upcoming festive shopping season, e-commerce giants Amazon and Flipkart have updated their fee and penalty structures for sellers. This change has raised concerns among small and medium enterprises, as many are already struggling with narrow profit margins. Sellers argue that these revised fees could further strain their financial capabilities during a critical sales period.
Concerns Over Increased E-Commerce Fees for Indian Sellers
A closing fee is applied to every product sold on Amazon, varying based on the product’s price and the fulfilment method chosen by the seller. Recently, Indian online sellers have expressed alarm over rising penalties for cancellations, dispatches, and other issues imposed by major e-commerce platforms, particularly as the festive season approaches. Vinod Kumar, Trustee of the Forum for Internet Resellers, Sellers and Traders (FIRST INDIA), highlighted that these penalties are especially troubling for micro, small, and medium enterprises (MSMEs) that are already grappling with slim profit margins and increasing operational costs.
