Ecommerce firm cuts commissions to lower seller costs and boost affordability in key value-driven categories
Flipkart on Friday revised its seller fee structure, introducing a zero-commission model for products priced below Rs 1,000 in an effort to cut seller operating costs and lift price competitiveness on its platform.
The company said the new structure applies to all eligible sellers in the sub- Rs 1,000 category. Combined with lower return charges, the changes could reduce operating costs by up to 30 per cent for these sellers, it said.
Flipkart expects the move to widen affordability in categories where most transactions fall within the lower price band. Its value marketplace Shopsy, will offer zero commission across all product prices to encourage participation from small and regional brands.
The company said the revised framework is backed by its technology-driven logistics network, which includes automated processes, predictive demand systems and AI-supported route planning.
“For our millions of customers, this zero commission model will translate into more affordable choices, especially in essential and value-led categories where prices below Rs. 1,000 dominate demand. It reflects our vision of building an inclusive, accessible, and growth-oriented e-commerce ecosystem that supports the ambitions of every seller,” said Sakait Chaudhary, senior vice president and head of marketplace at Flipkart.
Chaudhary added further added that “MSME sector contributes approximately 30 per cent to India’s GDP… The introduction of the Zero Commission Model… marks an important step toward removing entry barriers and enabling more regional, niche, and emerging brands to participate confidently in the digital economy.”
