- Buyer asks to cancel
- Order is cancelled
No fee
- No stock, wrong price, or any other reason
- You cancel the order
₹58.88 on a ₹499 order
- Estimated ship date passes
- 24 hours later, still not shipped and confirmed
- Amazon cancels the order
Same fee: ₹58.88 on ₹499
Amazon, Easy Ship and Self Ship orders, from 17 August 2026. Amazon's own notice, opened 14 October 2026.
This comes from Amazon's own notice in the Seller Central forum, "Order cancellation fee changes effective 17 Aug", for Easy Ship and Self Ship sellers. In Amazon's words: "A cancellation fee is applied when you cancel an order for any reason other than buyer request."
How much Amazon charges
Worked example
Cancelling a ₹499 order on Amazon
| Cancellation fee, 10% of ₹499 | −₹49.90 |
| 18% GST on the fee | −₹8.98 |
| Taken from your payment | −₹58.88 |
Worked out from Amazon's rate: 10% of the order value for orders under ₹10,000, and 18% GST on top of every cancellation fee. A regular GST seller (not composition) can claim this GST back as input credit, with the marketplace's tax invoice. Ask your CA.
Worked example
The same fee at other prices, GST included
| ₹299 order₹29.90 fee + ₹5.38 GST | −₹35.28 |
| ₹999 order₹99.90 fee + ₹17.98 GST | −₹117.88 |
Bigger orders pay a lower rate: 8% from ₹10,001 to ₹50,000, 5% up to ₹1,00,000, and 2% above that.
Before 17 August the fee was tied to the referral fee, so it changed with category and price. Now it is the same 10% in every category for orders under ₹10,000. On a cheap order that is a lot: cancelling one ₹499 kurta costs ₹58.88 with GST and earns you nothing. When that kurta actually sells, Amazon takes ₹78 in fees, or ₹92.04 with GST. So a cancel costs almost as much as a sale.
The fee you can get without pressing cancel
Amazon also charges it "when an order is automatically cancelled because you didn't ship and confirm the shipment within 24 hours of the estimated ship date". So an order left unshipped one day past its ship date costs the same as cancelling it yourself. In sale weeks, when orders pile up, this is the one to watch.
Flipkart: what is public, and what is only in the news
Flipkart's public seller pages say nothing about cancellation charges. News reports (The Week, 25 August 2026) say that from 23 August Flipkart charges ₹30 when an order is not ready for pickup by its Dispatch By Date, ₹60 when you cancel or an order is auto-cancelled after three missed dates, and ₹90 when an order is late and then cancelled. The reports don't make clear how the ₹60 and ₹90 cases differ. Outlook Business adds that sellers new to Flipkart are exempt for their first three months.
We could not check any of this on a Flipkart page, and the reports don't say whether GST is added. The real notice is in your Flipkart seller hub: read it there before you trust these numbers, ours included.
Meesho: 0 penalty for cancellations
Meesho's pricing page says: "Meesho charges 0 penalties for supplier cancellations and auto cancellations." Its page for sellers without GST adds late dispatch: "0 Penalty for late dispatch or order cancellations." If a penalty ever shows in your Meesho payment, raise a ticket in the supplier panel with the Sub Order No.
How to avoid the charge
- Keep your stock count true on every marketplace where the product is listed. An order for an item you don't have is a cancellation fee waiting to happen. Set stock to 0 the moment you run out.
- Ship and confirm before the ship date, not on it. On Amazon, 24 hours after the estimated ship date the order is cancelled and charged.
- If the buyer wants to cancel, let it be the buyer's request. Ask the buyer to cancel from their side, so it counts as a buyer request: Amazon does not charge for those.
- In sale weeks, pack early and keep proof (photos, pickup status) if the courier does not come. You need it to ask for the fee back.
- Read the fee notices in your seller hub before each big sale. Flipkart's rules are only there.
Questions sellers ask
What are the Amazon seller cancellation fee changes?
From 17 August 2026, Easy Ship and Self Ship sellers pay 10% of the order value plus 18% GST when they cancel an order under ₹10,000, or when it is auto-cancelled for not shipping in time. Before, the fee was based on the referral fee, so it changed with category and price.
How much is the Amazon seller cancellation charge on a ₹499 order?
₹58.88: a ₹49.90 fee (10%) plus ₹8.98 GST.
Do I pay if the buyer cancels the order?
Not on Amazon. Its notice charges the fee only when you cancel "for any reason other than buyer request", or when the order is auto-cancelled because you did not ship and confirm in time.
What are Flipkart cancellation charges for sellers?
Flipkart has not published them on a public page. News reports say ₹60 for a seller cancellation and ₹30 for missing the Dispatch By Date, from 23 August 2026. Check the notice in your seller hub.
The courier never came for pickup. Will Amazon still charge me?
Amazon's notice does not say. Sellers have raised it under the notice. Write to Seller Support with the order ID and your proof, and ask for the fee to be reversed.
Is there a Meesho order cancel penalty for sellers?
Meesho's pricing page says 0 penalties for supplier cancellations and auto cancellations.
Next step
Work out referral, closing and shipping fees on a delivered Amazon order. OrderLens itself reads your Meesho payment files.
Open the free Amazon calculatorSources
- Amazon Seller Central forum notice: Order cancellation fee changes effective 17 Aug · Amazon
- Flipkart: Fees and Commission (seller page; no cancellation charges listed) · Flipkart
- News report: why Amazon, Flipkart will penalise sellers more this festive season · The Week
- News report: Amazon, Flipkart restructure seller fees, penalties ahead of festival season · Outlook Business
- Meesho supplier pricing page · Meesho
- Meesho supplier page: Don't have GST? · Meesho
- GST law, section 16: input credit for registered sellers · CBIC
- GST law, section 10: composition sellers get no input credit · CBIC