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Why This Festive Season Is Getting More Expensive For Ecommerce Sellers

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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, Flipkart stopped charging a commission on fashion products, so on paper the seller keeps more of each sale than it did a year ago.

But under Flipkart’s new penalty structure, effective August 23, the seller is penalised ₹30 the moment the kurta misses its dispatch-by date. 

If the order is then cancelled, the seller is penalised another ₹60. 

Flipkart now also counts three missed deadlines as a cancellation. But the flat penalty (a total of ₹90) means that sellers face a greater burden to clear low-value orders.  

This is one example of how selling online has become costlier this festive season, and penalties are just one part of it. Besides this, there are fee surcharges that apply to every order, whether or not it is delayed or cancelled. And the cost of production and fulfilment have also gone up due to issues ranging from a crunch in raw material supply as well as high fuel prices due to the instability in West Asia.  

No matter the seller, whether it is a brand or an Amazon-specific seller, these charges and surcharges are making it harder and costlier to sellers on ecommerce at a time when business is at its peak. 

Third-party sellers usually operate on thinner margins than brands and have no control over the price listed on Amazon India, according to industry sources we spoke to.


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