Flipkart & Amazon 2025: New Seller Policies — A Deep Dive

Introduction

In 2025, e-commerce in India is witnessing significant policy shifts by two of its biggest players: Amazon India and Flipkart. These changes aren’t minor tweaks — they are strategically designed to reshape how sellers operate on these platforms. For new and existing sellers, understanding these updates is crucial because these policies will have direct implications on profitability, inventory management, pricing strategy, and long-term growth.

In this blog, we’ll explore:

1. The major policy changes on Amazon India in 2025
2. What Flipkart is doing differently this year
3. The strategic reasons behind these updates
4. The opportunities and risks for sellers
5. Actionable steps sellers should take to adapt

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1. Amazon India’s 2025 Seller Policy Changes

Amazon India has introduced several important updates in 2025 that impact seller fees, storage costs, and how certain charges are calculated. Let’s break down these changes.

1.1 Zero Referral Fees on Low-Value Products

• What changed: From 7 April 2025, Amazon India eliminated referral fees for products priced under ₹300 in over 135 sub-categories.
• Applicable categories: This covers a wide range of categories — including grocery, apparel, beauty, home décor, baby products, pet products, and more.
• Why it matters: Referral fees are a key cost for sellers. By removing them for these low-price items, Amazon is reducing the barrier for small-ticket items to be profitable.

Impact for Sellers:

• Sellers of budget-friendly products (under ₹300) can potentially scale more aggressively.
• More margin remains with the seller, allowing pricing flexibility or improved profit.
• Encourages sellers to list more “everyday low-value” SKUs, which may have been less attractive previously due to referral fee drag.

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1.2 Reduced Weight Handling Fees (WHF)

• What changed: For products under 1 kg, Amazon has decreased the weight handling fee by up to ₹17.
• Why this helps: Lightweight products now cost less to ship or handle in Amazon’s systems, improving the economics for small, light SKUs.

Impact for Sellers:

• Sellers dealing in lightweight goods (say phone accessories, small apparel, etc.) will benefit more.
• Combined with zero referral fee, WHF reduction makes micro-SKU operations more attractive.
• Possible savings when shipping multiple units together: as noted by Amazon, shipping more than one unit at a time can lead to up to 90% savings on the second unit.

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1.3 Simplified Shipping Rate for Easy Ship & Seller Flex

• Change: Amazon simplified its national shipping rates. For sellers using Easy Ship or Seller Flex, the national shipping rate has been reduced to ₹65, down from ₹77.
• Meaning: This flat-rate structure makes shipping costs more predictable and lowers costs for many sellers.

Impact for Sellers:

• Easier cost planning: simpler rates mean fewer surprises in shipping cost.
• Sellers who fulfill via Easy Ship or Flex can potentially increase margins.
• May encourage more sellers to adopt Amazon’s fulfillment or flex models, since the costs become more favorable.

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1.4 November 15, 2025 — Further Fee Adjustments

From 15 November 2025, Amazon is making additional changes that affect storage fees, refund policy, and WHF calculation for certain shipments.

Here are the key changes:

1. Storage Fee Increase:
   • Amazon is raising its warehouse storage fee by ₹5 per cubic foot per month, now charging ₹50/cu ft.
   • This is a sizeable increase and directly impacts cost for inventory held in Amazon’s fulfillment centers.
2. Refund / Return Fee Change:
   • For apparel and shoes (which are generally high-return categories), Amazon is decreasing the refund fee.
   • More importantly, closing fees for customer-returned orders will no longer be reimbursed. Amazon will only reimburse the referral fee, not the closing fee when a customer returns an order.
   • Closing fee is the fee Amazon charges when an order is finalized, and not reimbursing it on returns can be a cost burden on sellers.
3. WHF Calculation for SIOC Shipments:
   • For “Ship in Own Container” (SIOC) shipments, Amazon is removing its default packaging material weight addition from WHF calculations. Previously, Amazon added a default weight (like 100 g standard or 500 g for bulky) when calculating handling fee; now, that extra is removed.
   • This means WHF will more closely reflect the actual weight of what the seller sends, benefiting sellers who are efficient in packaging.

Strategic Impact of These November Changes:

• The storage fee hike penalizes long-term or overstocked inventory. Sellers will be more conscious about turnover.
• The non-reimbursement of closing fees on returns means that returns become more expensive, especially for categories with high return rates (fashion, footwear).
• The removal of default packaging weight in WHF for SIOC encourages sellers to optimize packaging and use their own container design more thoughtfully, reducing unnecessary weight and cost.

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1.5 Why Amazon is Doing This: Strategic Rationale

These changes are not random — they reflect Amazon’s broader strategic goals:

• Boost small-ticket sales: By removing referral fees on items under ₹300 and cutting shipping costs, Amazon is encouraging more small-value SKUs. This could drive volume, especially in fast-moving, low-margin categories.
• Encourage efficient inventory management: With higher storage costs, Amazon disincentivizes sellers from hoarding inventory and encourages just-in-time or optimized warehousing.
• Promote seller packaging discipline: The SIOC change nudges sellers to use their own efficient packaging, reducing Amazon’s handling complexity and cost.
• Balancing the books: While lower referral fees reduce Amazon’s earnings from some SKUs, the storage fee hike and non-reimbursed return closing fees help offset the revenue drop, especially for returns and inventory-heavy sellers.

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2. Flipkart’s 2025 Seller Policy Changes

Flipkart, too, has introduced several seller-centric policy changes in 2025. While not all changes mimic Amazon’s, Flipkart’s approach has its own logic and implications.

2.1 Operational Cost Reduction for Sellers

• Claimed benefit: According to Flipkart, its new policies lead to a 25% reduction in operational costs for sellers.
• What contributes to this cost reduction:
  • Simplified rate card: Flipkart says it now has a more transparent and simplified commission and fee structure.
  • Reduced return costs: Flipkart claims a 15% reduction in return costs, which is significant especially for categories where returns are common.
  • Catalog cost reduction: They are using AI-led image editing to reduce the cost of product catalogue creation (e.g., photoshoots), claiming an 80% reduction in associated expenses.

2.2 Simplified Rate Card & Predictable Settlements

• Flipkart has introduced a single “settlement value” model: sellers receive one assured settlement value regardless of service profile, zone, or payment mode.
• This simplifies financial planning for sellers because they know exactly how much they will receive per sale, eliminating variability caused by different delivery zones or payment types.
• According to Flipkart, this increases predictability, reducing the complexity many sellers face in forecasting their cash flows.

2.3 Onboarding Improvements and Scale

• Flipkart has improved its seller onboarding process — onboarding via mobile is now possible, which has helped more sellers to join.
• The company reports a two-fold increase in onboarded sellers just from making onboarding more accessible through mobile.
• Flipkart also provides dedicated support for new sellers in their early phase, helping them navigate listing, catalog, and operations (this is part of their “new seller success” push).

2.4 Flipkart Controls the Selling Price

One of the more controversial changes:

• Under the new policy, sellers no longer set the final consumer-facing “listing price”.
• Instead, sellers set a “bank settlement value” — i.e., what they want to receive after all fees and discounts. Flipkart then determines the final selling price consumers see, after applying its fees, taxes, and discount logic.
• Restrictions on changing settlement value:
  • Sellers can only change this bank settlement value twice a day.
  • And changes are limited to a ±2% range each time, which reduces flexibility.
• Seller concerns: Some sellers allege this restricts their ability to maintain price parity (i.e., offering the same price on Flipkart and other platforms like Amazon).
• There are claims that Flipkart’s control over listing price could lead to unfair prioritization: if two sellers have a similar settlement value, Flipkart might decide to set a lower listing price for one, potentially influencing sales volume.

2.5 Why Flipkart Is Making These Changes

• Predictability for sellers: By offering a fixed settlement value, Flipkart makes it easier for sellers to forecast their revenue, reducing one major pain point — unpredictable payouts.
• Lower operational burden: The simplified rate card and reduced return costs help reduce the everyday complexity and cost of selling.
• Scalability focus: Easier onboarding and AI-powered catalog creation indicate Flipkart wants more small and medium sellers to join its marketplace.
• Greater platform control: By controlling the listing price, Flipkart gains more control on promotions, discounts, and the overall consumer-facing pricing strategy. This could help it drive strategic discounting or promotional campaigns.

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3. Strategic Implications & What These Changes Mean for Sellers

These policy changes are not just technical or operational — they change the playing field. Here’s a breakdown of the implications.

3.1 Opportunities for Sellers

1. Scale Low-Ticket SKUs:
   • On Amazon, zero referral fees for products under ₹300 make it much more viable to sell low-cost items, opening the door for bulk, high-velocity sales.
   • Sellers who specialize in “micro-products” (small, lightweight) can now scale more profitably.
2. Improved Margin Management:
   • Lower WHF on Amazon (for light items) improves margin.
   • Flipkart’s fixed settlement value means sellers have clarity on how much they will actually earn per unit.
3. Cost Efficiency in Operations:
   • With Amazon’s SIOC packaging tweak, sellers can reduce handling costs via efficient packaging.
   • Flipkart’s AI-assisted catalog creation could drastically reduce the cost and effort of maintaining listings, especially for catalog-heavy sellers.
4. Predictable Cash Flow:
   • Flipkart’s assured settlement model allows for better cash-flow planning, which is especially valuable for small and mid-size sellers.
5. Better Onboarding:
   • Flipkart’s mobile onboarding lowers the barrier to entry, bringing in more first-time or early-stage sellers.

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3.2 Risks and Challenges for Sellers

1. Amazon’s Rising Storage Costs:
   • The storage fee hike (₹5/cu ft) penalizes slow-moving inventory. Sellers must be careful with stocking — overstocking can get very expensive.
2. Cost of Returns:
   • With Amazon not reimbursing closing fees on customer returns, sellers in high-return categories (like apparel) face increased risk and cost.
   • The reduced refund fee for apparel/shoes may not offset the non-reimburse rate for all sellers.
3. Pricing Power Loss on Flipkart:
   • Since Flipkart sets the final listing price (based on seller’s “settlement value”), sellers lose direct control over the price customers see.
   • Limited flexibility in changing settlement value (only twice a day, ±2%) can make it difficult to react to demand shifts or competitor pricing.
   • This also complicates multi-channel pricing strategy: if a seller wants the same or similar price across Amazon, Flipkart, and other platforms, they might find it hard to maintain parity.
4. Strategic Risk:
   • Flipkart’s control over the final price could be used to promote certain sellers or products over others, raising concerns about fairness.
   • Sellers relying heavily on returns (or with higher return rates) might find profitability squeezed.
5. Inventory Management Pressure:
   • On Amazon, to avoid paying high storage fees, sellers may be forced to reduce inventory levels or increase turnover — which may require better demand forecasting, more frequent replenishment, and potential logistics trade-offs.

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4. What Sellers Should Do to Adapt

Given these sweeping changes, sellers need a clear strategy to not just survive, but thrive. Here are recommended steps:

4.1 Reevaluate Your SKU Mix

• Identify which SKUs benefit most from fee cuts: Products under ₹300 are now much more attractive on Amazon. If you have existing SKUs in that range, run the numbers again.
• Focus on lightweight products: For items under 1 kg, the WHF reduction helps.
• Cull or rethink slow-moving inventory: Increase turnover or drop SKUs that will eat into profits due to higher storage fees.

4.2 Optimize Inventory Management

• Use demand forecasting tools: To avoid overstocking and reduce storage costs on Amazon.
• Consider just-in-time replenishment: Send inventory more frequently but in smaller batches, especially for fast-selling SKUs.
• Leverage SIOC packaging if possible: Optimize your own packaging to minimize weight and cost, making use of the WHF recalculation benefit.

4.3 Revisit Pricing Strategy (Especially on Flipkart)

• Calculate your “bank settlement value” carefully: Determine the right settlement value to ensure profitability considering your costs, but also knowing Flipkart controls the final list price.
• Use the two-times-a-day change wisely: Since you can only adjust settlement value twice a day (±2%), plan your pricing changes strategically — e.g., at high-traffic times or before major demand surges.
• Align multi-channel pricing: If you’re selling on Amazon, Flipkart, and maybe other platforms, model your pricing to account for the fact that Flipkart’s consumer price might not exactly mirror your input.

4.4 Mitigate Return Risks

• Monitor return rates: Especially for apparel/shoes on Amazon, where closing fees on returns are now non-reimbursable.
• Improve product listing quality: Better product images, detailed specs, and accurate size information can reduce returns.
• Use Flipkart’s return-cost reduction: Leverage the 15% cut in return costs (as claimed by Flipkart) by optimizing return logistics and packaging.

4.5 Leverage Flipkart’s Onboarding and Operational Support

• Take full advantage of mobile onboarding if you’re a new seller.
• Use Flipkart’s seller support and training to understand the new rate card, settlement model, and catalog-creation tools.
• Utilize AI-based catalog tools: If Flipkart provides AI image editing for your product listings, make use of it to reduce costs and enhance listing quality.

4.6 Financial Planning and Cash Flow Management

• Project cash flows carefully: With more predictable settlement (on Flipkart) and changed cost structures, build models that incorporate Amazon’s new storage costs and return costs.
• Maintain buffer inventory cautiously: While lower referral fees could tempt you to stock more, balance that with the risk of paying storage fees for unsold stock.
• Negotiate with suppliers: Since your per-unit profitability might change, renegotiating purchase price or terms could help.

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5. Long-Term Strategic View

Looking beyond the immediate impacts, sellers should also think strategically about the opportunities these changes unlock and the evolving e-commerce landscape.

1. Scaling small-ticket commerce: The Amazon referral fee cut could lead to a boom in budget-focused SKUs. Sellers who focus on high-volume, low-margin items might find a new growth runway.
2. Efficiency becomes a competitive advantage: Those who optimize packaging, inventory, and returns may outperform competitors burdened by Amazon’s storage hikes.
3. Platform diversification matters more than ever: By selling on both Amazon and Flipkart, sellers can hedge policy risk. For example, a SKU might be more profitable on Amazon now below ₹300, but on Flipkart, the assured settlement model might make it more stable.
4. Data-driven decision making: Sellers who leverage analytics for demand prediction, return probability, and unit economics will be better positioned to navigate these changes.
5. Negotiation power with logistics & suppliers: As your business adapts, you may be able to negotiate better deals — for pick-ups, packaging, or supplies — because of more stable unit economics.

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Conclusion

The 2025 policy changes by Amazon India and Flipkart signal a major shift in how these platforms view their seller ecosystems. Amazon is clearly pushing for volume growth in low-ticket items, pushing sellers to be leaner, more efficient, and more inventory-savvy. Flipkart, on the other hand, is focusing on predictability, transparency, and operational efficiency, while also centralizing price control to drive its broader strategic goals.

For sellers, these changes bring both opportunities and risks:

• Opportunities: More room for micro-SKUs, better margins on low-priced items, simplified planning, and lower operational costs.
• Risks: Higher storage costs, less control over consumer pricing (on Flipkart), and increased burden of returns.

To succeed in this new regime, sellers should re-evaluate their SKU mix, optimize inventory and packaging, adapt their pricing strategies, and make use of the tools and onboarding support offered by both marketplaces.

If you play your cards right, 2025’s policy changes could become a springboard for scale, not a barrier. But the key lies in being proactive, data-driven, and efficient.

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