Flipkart has eliminated commission fees on all fashion products sold on its platform, expanding the zero-commission policy beyond items priced below ₹1,000. This change affects roughly 90,000 sellers, including MSMEs and D2C brands, and aims to improve margins and deepen seller loyalty during its ongoing GOAT sale, according to inc42.com.
The zero-commission policy rollout follows Flipkart’s earlier strategy on its hypervalue platform Shopsy, where waiving fees for products under ₹1,000 led to a 30% reduction in operating costs for sellers. By removing commission fees on fashion items, Flipkart hopes to attract more merchants and encourage reinvestment in inventory and branding. The company is also providing AI-powered demand insights and catalog tools to help sellers respond quickly to market changes, inc42.com reports.
This move comes amid intense competition in India’s ecommerce sector, where platforms are seeking ways to retain sellers and expand product assortments. Flipkart’s zero-commission approach contrasts with typical marketplace models that charge fees, potentially giving it an edge in the fashion category. The strategy aligns with efforts to increase marketplace loyalty and improve seller economics, which are critical in a segment known for thin margins, inc42.com states.
Flipkart’s zero-commission policy now covers all fashion products, impacting approximately 90,000 sellers. The company is leveraging the high-traffic GOAT sale period to promote this change and strengthen its position in the ecommerce market, inc42.com confirms.