Flipkart waives commission for products priced below ₹1,000 to aid sellers
Shopsy adopts blanket zero-commission model for every listing nationwide, boosting inclusion
Policy could lower seller costs up to 30%, aiding MSMEs and regional brands
E-commerce platform Flipkart on Friday said it will not charge commission on all products priced below ₹1000 and that its hyper-value platform Shopsy will move to a blanket zero-commission model for every listing, PTI reported.
The move is reportedly aimed at cutting sellers’ operating costs, widening affordability for customers and accelerating participation by MSMEs and regional brands.
31 October 2025
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Under the updated policy, sellers listing eligible products priced under ₹1000 on Flipkart will no longer pay commission fees. On Shopsy, which targets hyper-value shoppers, the commission waiver applies regardless of price. Flipkart said the combined measures, along with reduced return fees, could lower the cost of doing business for affected sellers by as much as 30 percent.
Seller Economics & Rationale
Flipkart framed the change as support for micro, small and medium enterprises, which the company says contribute roughly 30 percent to India’s GDP.
The platform argued that removing commission barriers would encourage more regional and emerging brands to enter online retail while passing savings on to price-sensitive buyers who dominate demand below the ₹1000 mark.
Sakait Chaudhary, Senior Vice-President and Head of Marketplace at Flipkart, said the policy is intended to expand affordable choices for millions of customers and bolster inclusion in the digital economy.
Unit Economics
Flipkart said the decision is underpinned by efficiencies in its logistics and operations stack. The company highlighted an AI-driven logistics network, with automated sorting, machine-learning demand forecasting and route optimisation, as enabling lower fulfilment costs and improved delivery reliability, helping sustain lower fees for sellers while protecting margins.
Flipkart pointed to earlier product and pricing reforms, and seller support initiatives such as “Advertise Now, Pay Later,” as part of a broader strategy to reduce friction for small merchants.
The policy is the latest salvo in a broadening race among ecommerce players to win value-conscious shoppers and first-time online customers from smaller towns. Amazon India earlier this year cut referral fees for a large number of low-value SKUs and trimmed several seller charges; Meesho has long competed on a no-commission model.
