Flipkart Drops Commission Fees for Products Listed Under ₹1,000

Flipkart has announced a zero-commission model for all products priced below ₹1,000, as per the news reports. Sellers listing items in this range will not have to pay a commission fee to the platform. The company said the change aims to reduce selling costs and make low-priced products more accessible to customers. 

Extended to Shopsy 

The model has also been extended to Flipkart’s value-focused platform, Shopsy. On Shopsy, zero commission will apply to all products, regardless of price. The platform caters mainly to users from smaller towns and tier-2 cities, which account for over 70% of its customer base. Popular categories include fashion, home décor, and general merchandise, with most items priced between ₹150 and ₹250. 

Expected Cost Impact 

According to Flipkart, removing the commission fee could reduce the cost of doing business for sellers by up to 30%. The update is expected to be relevant for small and medium-sized enterprises that sell high-volume, low-value items. MSMEs make up a large portion of Flipkart’s seller base and contribute nearly 30% to India’s GDP. 

Competitive Context 

The change comes amid growing competition in the low-cost e-commerce segment. Platforms such as Meesho and Amazon Bazaar already follow similar low-commission or zero-commission models for certain product ranges. Flipkart had earlier tested a zero-commission setup in select categories, but this is the first time it has been applied across all products under ₹1,000. 

Change in Return Fees 

In addition to the commission change, Flipkart has lowered product return fees by ₹35 across categories. Return charges usually range from ₹160 to ₹175. The reduction is for addressing one of the main cost concerns for sellers, who often bear part of the expense of returned items. 

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Conclusion 

With the introduction of a zero-commission model and reduced return fees, Flipkart has updated its marketplace structure for low-priced products and expanded the same framework to its Shopsy platform. 

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