Flipkart adopts zero commission on sub-₹1,000 goods to boost value commerce

Flipkart has removed commissions for products priced below ₹1,000 and extended the model across Shopsy, aiming to attract MSME sellers

Flipkart has rolled out a revised seller rate-card that introduces a “zero commission” model for all products priced below ₹1,000, a move the company says will simplify cost structures, encourage competitive pricing and reinforce its appeal to small and medium-business sellers.

 

The initiative also extends to its value-oriented platform Shopsy, where zero commission has now been applied across all price tiers—a push to capture the hyper-value segment for both sellers and price-sensitive consumers.

 

Sakait Chaudhary, senior vice-president and head of marketplace at Flipkart, said the micro, small and medium enterprise sector contributes approximately 30 per cent to India’s gross domestic product (GDP), accounting for a significant portion of the country's economic activity.

 

Why is Flipkart pushing a zero-commission strategy now?

 

“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,” said Chaudhary. “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 ₹1,000 dominate demand.”

 

Under this updated structure, all eligible sellers listing products below ₹1,000 will not be charged a commission fee. This initiative is aimed at supporting MSMEs, helping them improve customer affordability while managing the cost of doing business more efficiently. The model builds on Flipkart’s longstanding efforts to enable seller success through technology-driven tools and ecosystem-wide support.

 

How is Flipkart strengthening its tech-driven supply chain?

 

Flipkart’s supply chain strength offers sellers predictability and reliability. Here the technology-driven network is at the core, leveraging machine learning for predictive demand forecasting and advanced AI to automate operations and optimise delivery routes. This integration of technology, from automated sorting to intelligent address systems, ensures the seamless delivery of millions of shipments. Flipkart said this advanced infrastructure, combined with secured payments and access to over 500 million customers, reinforces its role as the partner of choice for MSMEs and emerging brands.

 

What cost benefits will sellers gain under the new model?

 

Flipkart said this move is designed to improve overall profitability for sellers while enhancing value and choice for customers across Bharat. With these new developments, sellers listing products below ₹1,000 on Flipkart and all sellers on Shopsy stand to benefit from up to a 30 per cent reduction in their overall cost of doing business. The initiative, introduced with proactive guidance through the Seller Dashboard and service touchpoints, ensures a smooth transition.

 

How is Meesho shaping India’s value-commerce landscape?

 

Meesho leads value-commerce

 

Notably, this is not an entirely new concept in India’s e-commerce ecosystem: rival Meesho has long operated under a zero-commission marketplace model for its sellers.

 

IPO-bound Meesho leads India’s value commerce, driven by its cost-efficient, asset-light model, Bank of America (BofA) Global Research said. The e-commerce platform, which focuses on low-priced goods, mirrors models like PDD and Shopee in China and Southeast Asia, and continues to expand access for millions of price-conscious consumers across India.

 

The report states that platforms like PDD and Meesho do not charge commissions to merchants and instead monetise by charging a markup on logistics and through ads. To expand their market further, these platforms are looking to reduce logistics costs—either by negotiating well with third-party logistics (3PLs) or by in-sourcing more.

 

Reflecting this trend, Meesho is focused on providing ‘everyday low prices’ for consumers, enabling them to find low-priced products on the platform without having to rely on promotions. This is enabled by a zero-commission model for sellers, which reduces the average cost charged to sellers on Meesho. There is also low-cost order fulfilment enabled by the platform’s scale and Valmo. It also includes a technology-first operating model that enables the company to reduce costs and increase efficiency as it scales.

 

How is India’s retail market split across channels?

 

Of the over $1 trillion retail market of India, 9 per cent is catered by e-commerce, 2 per cent by quick commerce, 12 per cent by organised retail and the remaining 78 per cent is the unorganised market catered by mom-and-pop kiranas. Within e-commerce, BofA observes a clear dispersion, where premium users are mainly on Amazon, urban and Tier-I city users are on Flipkart, and mass-market, value-focused users are primarily on Meesho.

 

What is Amazon India doing in response to value-commerce pressure?

 

This year e-commerce giant Amazon India introduced zero referral charges on over 12 million products on its platform that are priced below ₹300. The move was aimed at boosting seller growth on Amazon.in and supporting lakhs of small businesses across the country. The revised fees came into effect from April 7.