Move aligns with Flipkart’s zero-commission strategy as platforms vie for more sellers and value-driven shoppers
Amazon India has extended its waiver on referral fees for items priced under Rs 1,000 through 31 December, the media report said. The commission, which is usually between 2 per cent and 16.5 per cent, depending on the category, is charged on every sale made via the platform.
The exemption was earlier scheduled to end on November 30. While the latest extension does not cover all product types, it mirrors a similar approach adopted by Walmart-owned Flipkart.
Flipkart Pushes Ahead With Zero Commission Offer
Flipkart rolled out a zero-commission structure for goods priced below Rs 1,000 about two weeks ago. Its value-focused marketplace, Shopsy, has also removed commissions altogether, enabling sellers to list products at no cost, irrespective of the price point. The strategy is part of the company’s effort to fend off competition from value-driven rivals like Meesho, which relies more on advertising and logistics margins than on seller fees.
The company has additionally reduced return charges by Rs 35, a move that could bring down operational expenses for sellers by as much as 30 per cent.
Potential Gains For Sellers And Shoppers
Lower platform charges may lead to meaningful price reductions if sellers choose to pass on the benefit to buyers, potentially lifting e-commerce demand during the winter sales period. Flipkart expects the changes to draw more sellers from smaller manufacturing clusters, including Shantipur, Morbi and Khurja.
Amazon, for its part, trimmed referral fees for items under Rs 300 in April 2025 to ease pressure on small businesses. Flipkart’s cost-cutting measures and commission waivers are aimed at expanding its appeal among middle-income shoppers while broadening its product selection.
According to an analysis by BofA Securities, Meesho primarily caters to value-conscious consumers, Amazon targets premium buyers, and Flipkart’s core audience spans urban and tier-1 and tier-2 markets.
