Flipkart steps up value-commerce strategy, waives seller commissions on goods under Rs 1,000

Ecommerce major Flipkart on Friday introduced a zero-commission model for products priced below Rs 1,000, extending its push into hyper-value commerce, as ecommerce firms compete for first-time online buyers and small sellers.

The zero-commission offering, along with reduced return fees, will decrease the cost of doing business by about 30% for sellers under the Rs 1,000 bracket. Earlier, the zero-commission model was only available for select categories and products priced below Rs 500 on the platform.

The update also turns Shopsy, Flipkart's ecommerce platform focused on affordable assortments, into a complete zero-commission model player, beyond the select few categories that were always under the framework.

This is the latest in a series of efforts undertaken by the Walmart-backed player to tap into small sellers and consumers from smaller towns. In July, Flipkart launched an "Advertise Now, Pay Later" initiative, enabling sellers to run advertising campaigns without making an upfront payment. The payment would instead be deducted from the seller's next month's earnings.

Prior to that, the Kalyan Krishnamurthy-led platform introduced initiatives to increase the ease of business for first-time entrepreneurs from smaller towns. The updates included streamlined onboarding, improved product visibility, and simplified pricing processes.

Last year, it launched a new rate card policy to enhance clarity on settlement and simplified its rate card structure to a two-component structure.

Its efforts haven't been in vain; the number of transacting sellers on its platform rose by about 25% in the six months ending August, while seller business grew roughly 30% in the quarter through August.

Flipkart said the new model is supported by its AI-led logistics network, which uses automated sorting, machine-learning-based demand forecasting, and route optimisation to improve delivery reliability and seller profitability.

“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,” said Sakait Chaudhary, Senior Vice President and Head of Marketplace at Flipkart.

As reported earlier by YourStory, ecommerce platforms are recalibrating policies as the next 100 million customers from Tier III and lower towns flock to digital platforms for their consumption, valuing affordability and assortment.

Rival Amazon India had made similar moves earlier this year, when it introduced zero referral fees for over 1.2 crore low-value products priced under Rs 300—its largest fee reduction to date—covering categories such as fashion, home, beauty, and grocery.

Amazon also cut weight-handling fees for lightweight items and introduced simplified national shipping rates. The company said these changes were aimed at improving selling frequency and lowering cost barriers amid intensifying competition.

Amazon and Flipkart have been recalibrating policies to make onboarding easier and expand affordable assortments, relying on advertising, logistics, and fintech services for revenue.

Competition from Meesho, which built its scale on a no-commission model, has further pushed incumbents to double down on value-led strategies as they target the next cohort of online shoppers.